Search the Community

A friend of mine back in the UK is just about to turn 60. She lived in Australia for 9 years and has a super fund which she only mentioned during a conversation a couple of days ago, but was completely unaware that it would be taxed in Australia. Will she have to pay 32.5% on the full value of any withdrawals from the fund, or just the gain over the lifetime of the fund? How does the ATO calculate how much tax is due and when it needs to be paid? Thanks in advance.

Hi We are shortly to be relocating back to the UK as we have elderly parents and want to spend time with them having lost relatives this year. We have an Australian business with virtual offices in the UK and Europe and hope to be able to operate from the UK but keep the head office in Australia and really need some tax advice. I did notice at some point that there was a dual tax advisor on this forum but cannot find his information, is someone able to point it out to me please. We live in Melbourne and I understand that this tax agent also lives in Melbourne too. Also, on another note: any recommendation on removal companies? We have had a quote from Grace Brothers but looking to get 2 more? Would you also take out separate insurance or go with the insurance from the shipping company? Many thanks

please share your experiences!

Hi! Noob here so apols if this has been asked 1000 times before or isn't appropriate. I was just wondering if anyone had any experience of the following situation... I'm currently a self employed sole trader in the UK and will be relocating to Australia in Dec 2021 on a Subclass 100 Partner Visa. If I receive income from employment in Australia once I have relocated, should that income be declared on my UK tax return for 2021-22? Likewise, should any of the income I have earned in the UK prior to relocating to Australia need to be declared on an Australian tax return for the year 2021-22? Thanks, Frank

Hi all. I will be seeking professional advice, but am hoping to maybe get some tips from your knowledgable selves! I left the UK in October 2014 and have been in Australia since that time. I returned to the UK due to COVID several months ago and would like to stay longer to help look after my mum and granny. If I stay more than an additional 2 months though, I will be considered a UK tax resident under the SRT. From Australia’s perspective, I believe that I am still an Australian resident (I am currently receiving Jobkeeper from my Australian employer and have a pending citizenship application but no longer have a ‘home’ in Australia). If I do stay long enough in the UK to become a resident what are the implications tax wise? I understand that the Double Tax Treaty applies a tiebreaker in the case of dual UK and AU residency. In that instance the UK would ‘win’ as that will be the only place where I have a permanent home. I do however have $20k of capital losses in Australia from the previous tax year that I would like to use by selling some shares before becoming a UK resident again. This is attractive since I have been a non-resident in the UK for 5 complete tax years so I will be exempt from UK CGT on those sales. I would therefore like to claim split year treatment as I will soon be having my only home in the UK (case 4). This would allow me to sell these shares soon, whilst being considered a UK non-resident (and utilise the AUD loss) before becoming a UK resident. Could this be possible? I cannot find any information of how the residency tiebreaker within the DTA will liaise with split year treatment. Many thanks

I'm an Aussie Citizen now and selling my UK property - what are my CGT liabilities in the UK or here Any advice greatly received Cheers

Hi guys, I have a couple of questions about tax for trading profits. Could you please help me with this: 1. I have scenario where I am not sure whether I am a trader or a investor from tax perspective. Per my understanding, a trader tax is for someone who has positions open less than 12 months. And to be an investor, one has to hold positions for less than 12 months. Is that correct understanding ? 2. Further, if the understanding in point 1 is correct, then I am perhaps a trader from tax perspective. However, for one to be trader, one has to also have a detailed business plan, and, log of all trades and the reasons for entering the trade etc. I do not have all these. I simply trade casually and close the position in a few weeks. So does this qualify as a trader ? 5. When calculating tax, should it be on the net profits ? i.e. if there were 20 trades made of which 15 resulted in profit of 15k and 5 resulted in loss of 5k, would the tax be on the net profit of 10k or would be on the profit from the profitable trades i.e. 15k profit would be taxed ? 6. When I asked about doing taxes with an accountant (did not ask the above questions because of the reason that follows), they said they would need to look at all the trades I made to determine the tax. However, I do not want to disclose the trades to the accountant. In general, does one need to disclose the trades to the accountant or can tax be done with it? If I need, how do I keep the trading strategy to be confidential when doing the tax at the account ? Thank you

I will be moving my UK pension to Australia in June. I have an estimation that after accounting for the assessable growth, I have $150,000 that would be considered as non-contributional contribution. I am a sole trader. Can I claim $25,000 out of this contribution for tax deduction?

I appreciate the need for detailed advice as to pension transfer arrangements. However, does anyone know if it would be possible to: (1) take 25% of an UK SIPP tax free in the UK before becoming tax-resident in Australia; (2) transfer the balance to an Australian QROPS/SMSF without crystallising a tax charge in the UK; and then (3) make further payments into the fund in Australia (getting whatever tax benefits are available for such payments from time to time in Australia). I am 55 but anticipate working for 10+ years still.

Hi We have been in Australia since June 2011, we have a flat that we rent out back in the UK. We only got a tenant for the flat and started receiving money when we arrived in Australia. For tax purposes, who should we contact to declare that we have money coming from the UK (I think it is worlwide income?). We have a UK bank account that the money from the flat goes into. thanks x

Be aware of the new law regarding CGT. Evidently you need to sell before the middle of this year in order to still be exempt from CGT.

Hello, We are currently going through a 482 visa application and trying to decide what to do with our UK property, and would like some advice. For the last two years we have travelled abroad and rented our UK home, we were still deemed UK tax residents during that period as we weren’t settled in one country and were not working. Now we are looking at a move to Oz, and just thought we’d keep our house and continue renting it, however the more I’ve looked into I’ve realised there might be some pretty big financial pitfalls. We purchased the house (jointly owned by my husband and I) in Dec 2013 for £300k, lived in it until Oct 2017, during that time we did some extensive building work - we basically took the existing house back to brick work to start again and added an extension that doubled the size. The total cost of work was probably in the region of £150k, maybe as much as £200k. The house is probably worth £650k now. We didn’t keep all the receipts for the work we had done but I guess bank statements and credit cards could be used to get a more accurate record? Our house is currently rented out, the monthly rent is £2000. Our mortgage is around £1600 (variable) with roughly half (£800) being interest. So my questions: 1) If we continued to rent the house then the UK income I believe would come under the tax free threshold - is this correct? Would we still be entitled to the threshold as non resident? 2) if we rented the property would we have to pay tax on it in Aus? How is that calculated? 3) if we sold the property I understand we’d have to pay CGT. In terms of proving what we spent on improving the property what would we need to provide - would credit card statements be enough or would we need receipts and invoices for everything? 4) how much CGT would we pay if we sold now (using Dec 2019 for ease of calculations) versus if we sold in say two years time? My understanding is: Dec 2019 Owned property for 6yrs (72mths), lived in property for 47mths, Rented it for 25mths. Gain on property (worst case) £200,000 £200k/72mths = £2777/mth 47 + 18 = 65 x £2777 = £180,500 so CGT liability = £19,500, which would be inside our annual threshold. Alternatively if we kept the property and sold in two years time - Dec 2021: Owned property for 8yrs (96mths), lived in property for 47mths, Rented it for 49mths. Gain on property (I guess this would probably be a bit higher, circa 4% over two years based on current rises = value of £626k) £226,000 £226k/96mths = £2354/mth 47 + 9 = 56 x £2354 = £132k so CGT liability = £94k. £24k threshold, so we’d pay tax on £70, at either 18% or 28%. (£12,600 / £19,600) 5) if we sell the house how do we work out if we are basic rate or higher rate tax payers? Our “normal” jobs would both be higher rate - but do they only look at UK income (ie. income from renting our property) or is is based on what we’d be earning in Aus? thanks in advance for any help and advice you can give!

Hi all, Moving back to the UK (Midlands), what is the recommended amount of money to take back? (2 adults, 1 child) I've seen figures from $7500-$25,000 being thrown around. We will have free accommodation whilst back, staying with family. How and what are the prerequisites for acquiring a tax number? Do we have to have a residential address? Is this also the same for creating bank accounts? My partner and I have now had consistent work since leaving school (5 years), As it stands I should be back in the country 2 weeks before starting work and my partner will be actively applying closer to the date we move. Do real estate agents accept past work history and bank statements as a show of solid income? also if we are employed in the UK prior to applying for a rental property is there a certain amount of time they like you to have been working before they'll accept your application? Hope that is clear enough and not to muddled, apologies if so, any help would be great thanks :)

Hi everyone, I need your advice here. I have been working for my company for the past 6 years and was been paid by cash. So like that, I don’t have bank statement but I do have tax statement and payslips. Will this be enough to get a positive assessment from TRA. <b>Thanks </b>

Hi, Let me know if there's an existing thread on this subject and I'll go find it, but in the meantime... - I recently moved back the UK after 4 years or so in Australia. - I want to continue freelancing for Australian clients and I'm not sure of the best way to do this, money-wise. - Can I continue invoicing in AUD with my ABN and get paid into my Australian bank account? - What happens at tax time (in both countries)? - Any tips for avoiding international transfer fees and so on? Lots of questions! If you can help with any of them, it would be much appreciated. Thank you!

Hello people! Can anyone advise me on the best way to reclaim tax upon ending a visa and leaving the country? I have finished a working holiday and now a training visa and will be leaving Australia next month. Previously I have reclaimed tax from the gov website but I have heard people say that you can get a lot more of your money back from tax by using agencies? Has anyone used any such tax reclaim agents before that they can recommend? Would be v grateful! Thanks!

I'm looking for another person to join the team at bdh Tax. If you have experience in a professional firm preparing UK tax returns and are looking for an opportunity to join a friendly firm that is adding to our client base quickly please feel able to send a message to me, or to send your CV to the address at this web page. Thanks! https://www.bdhtax.com/join-us/ Best regards.

Hi Guys, If we own property, do we need to pay property taxes on annual basis? Thank you

Hi All, If one has been USA for 2 months (Jan, Feb) and then moves to Oz, should they file the tax returns for those 2 months in OZ? Also, any idea if we need to file USA tax returns for those 2 months ? Thank you

I hope someone can help me... I am on a 457 visa, British, have not applied for PR. Do I need to pay the Medicare levy (not surcharge, I am under the threshold anyway)? I was under the assumption I do not and have completed my tax return each year to say so. But then I get a letter from ATO saying my tax return is incorrect. I am very confused and worried all my tax return refunds will be taken back. This website indicates I may be able to apply for an exemption under the temporary visa / reciprocal health agreement - https://www.humanservices.gov.au/individuals/services/medicare/medicare-entitlement-statement Can any one help me with this?

Hi, I'm due to move from the UK to Australia around Christmas. As part of the move, my company is closing my employment contract in the UK on 31st December, and commencing my Australian one (same company) on 1st January. Hence I'll get a P45 referencing 31st December. However - I'm in sales and get commission, which is paid a month in arrears, with typically a large amount of it in December. My company said they'll pay my commission in a special January 31st payslip, and issue me a second P45 right after that. So, once I land in Australia, I'll get a GBP salary payment into my UK bank account, which I assume will be declared to the HMRC under PAYE, and which I'll need to declare on my first Australian tax return after July next year, and I assume pay tax at the prevailing rate. I expect to handle it as a split tax year between the UK and Australia. My question is - is it better to receive that payment in my UK or Australian payslips - assuming I can choose? The higher-rate income tax rates are pretty similar, I'm a part-year resident in each, and the amount is the same, just whether it's in one currency or another. The payment relates to work in the UK, due under my UK contract, so I assume its natural home is in the UK. It seems there's little difference in which country's payslip I receive it in, but i thought I'd check.

bdh Tax is looking for a person (or two) with knowledge/experience of UK tax return preparation, based in Australia. You needn't be fully tax qualified, and can work from home if preferred, albeit that attendance at one of our offices periodically will be desirable. We are happy to help you upskill in Australian tax return preparation, including paying for a suitable course or two. If you are interested and would like to know more please feel able to send your CV to tax@bdhtax.com Best regards.

Hello everyone and thank you in advance for any tips/advice. I have lived over in the UK since 2012 - 2 years on a work visa and nearly 5 years in ancestry with plans to get British citizenship via ILR. I have been married since 2014 and have one child. My husband is from the UK. We are thinking of coming to live in Australia and starting this process within the next 12 months but of course lots to think about!! Ive been trying to read about CGT but it’s giving me a headache and caused some rather heated debates at the kitchen table!! My husband bought a flat in 2008 and I moved in with him in 2013. From what I have read if we sell before we move to the UK -which we will need to do for financial reasons - we will be hit with CGT i will be getting advice professionally but would appreciate any tips as the more I try to figure it out the more i get stressed!! I guess what I’m asking for is an ‘idiots simple guide’ to what we’re looking at in terms of potential money to the Aust govt and the best way to start planning Thank you!

Hi all I'm trying to organise Undeducted purchase price information for my UK teachers' pension. I have located and downloaded a form issued by the Australian government but am a bit foggy about the next step - do I send the form to the Australian tax authority for help, or do I contact Teachers' Pensions' and ask for information? I'm hoping there might be a retired UK teacher out there who can offer advice. Thanks in advance.

Hi all My parents have their permanent residency here now :-) Yeahhhhhhh They get only a UK State pension paid directly into a bank account in AU. Dad got a letter from his UK bank where he only has a few hundred pounds and no deposits going in asking to verify where he is resident for HMRC For tax ??? Question: I assume we say resident in AU ? Question: His total state pension income is aprox 21K au dollars depending on exchange rates and mums is even less probably about 10K....so will he get a tax bill here now ??.......which they cannot afford :-( Thanks in anticipation Kerry