how to return to UK??

[everywhere gal]

[h=2][/h]

we are both 60 retired, self funded retirees in OZ both have joint Oz/UK and Irish EU passports, and contemplating returning to Uk. Been here 37 years, with many trips back, and not entitled to any UK benefits. Just trying to work out if it can be done, what are the tax implications, as we have a modest australian share portfolio and live from that, not entitled to government pension, and own moderately priced home in a rural NSW town.

So not sure where to start to enquire about this process. If all shares are fully franked here in OZ, can we leave them here, transfer the income from them to a UK bank account but would we be taxed AGAIN in UK. From reading UK Govt Tax dept site its very confusing. (the term self funded doesnt exist in UK!) any pointers as to where we can get good legitimate advice that would say once and for all, either forget it or enquire further. Many thanks

 

[starlight7]

You're brave ! Good luck,can't help but I am sure someone here will

[jen85]

I would speak with your bank or financial planner they should be able to help with the money side of things. Good luck!

[everywhere gal]

cheers to you both. yes we realise all of the above, and in the need for advice in UK as well. Guess we're in that very EARLY thought process..perhaps it may all get too much huh…?

[fourcorners]

Where there is a will there is a way.

 

Whenever I have called any of the tax departments in the UK they have always been very helpful. I am sure once you start making inquiries things will start falling into place and you'll slowly make sense of what you have to do.

[Gbye grey sky]

Tax liabilities are generally paid in the country you are resident however there are Double Taxation Agreements in place between UK and Australia so you should never pay tax twice on the same income. You would have a tax-free allowance in the UK. I do feel that you need to find and consult an Idependent Financial Advisor in the UK about your investment options with the money so that you can assess whether you are better off keeping the existing investments and transferring the income or moving all the money over and investing in the UK.

 

With the former you are at the mercy of exchange rates and there are always exchange rate transfer costs. With the latter option you probably need to be certain that you will not return to Australia in the future.

[Marisawright]

We're in the same situation. From what we've been able to find out, the tax implications can be really nasty - I'll be interested if anyone is able to give better news.

 

First, you'll lose your tax free threshold in Australia! That means ALL your income from Australian sources will be taxed. Also, you won't get the 50% discount rate on capital gains - you'll have to pay tax on 100% of the amount. That alone is going to be painful if you have a reasonable portfolio.

 

You won't be taxed again on that income by the UK - but if you have a pension from your superannuation, they'll tax that.

 

I'm assuming you just have a straightforward share portfolio, not a self-managed super fund. If you do have a SMSF, it will be taxed at 47% if you're a non-resident.

 

You can get around that by taking your super as a lump sum and moving it all to the UK, or possibly transferring it to a UK pension fund (haven't looked into how that's done). Also of course, you could sell up your share portfolio and start a new one in the UK. I can understand why you're reluctant to do that (capital gains etc).