Jump to content

Tax Help


noworriesmate

Recommended Posts

I am looking for some general advice just now and depending on how things go I will pay to get specialised advice in due course.

 

I still have a business in the UK despite living in Aus now for three and a half years as a permanent resident and thus paying tax on my worldwide income here. With the exchange rate looking better than it has since I moved out I am wondering if the time is getting nearer for selling it. So here are my questions:

 

1) I believe if I were to sell the business now, I would be liable for tax on any increase in value since June 2010 when I moved out, which would be taxed at my prevailing tax rate in Aus as well as capital gains tax in the UK on the difference between what I bought the business for and what it was worth when I emigrated - is this correct?

 

2) presuming the value of the business hadn't changed since 2010 but the exchange rate had gone from 1.67 to the pound to say 2.00 would I be liable for tax on the increase in value i.e. on $.33 for every pound I sold it for?

 

3) Now this is the tricky one - The guy who manages the business for me would love to emigrate out here too. Is there a way I could sell one of my branches of my business in the UK (I have 3) and then buy one out here, sponsor him to manage it and then bit by bit sell the other branches in the UK and replace them with ones here. aside from the visa questions, what would be the tax implications in doing this??

 

I understand this all may all be too technical to ask on here but as I said, just now I am just mulling it over and am not ready to spend the bucks for professional advice.

 

NWM

Link to comment
Share on other sites

Guest John Horvath

Hi NWM

 

basically it is too technical to answer on this forum as you have too many circumstances listed. The ATO will be able to answer your questions for free although if you get someone who does not know what you are going on about they will schedule someone to call you in 48 hours - which they do normally. The ATO website also answers a lot of your questions so by spending some time either on their site and / or on the phone you resolve your issues for free.

 

You issues regarding immigration, business purchases and sponsoring - refer to the immigration site and give them a call - they will be able to answer your questions in this regard and the requirements to sponsor.

 

I hope the above helps.

 

cheers

 

John Horvath Financial Planner/Finance Broker

Gold Vision Financial Services http://www.goldvision.com.au

Link to comment
Share on other sites

Do not rely on advice given verbally by the ATO - or indeed the Department of Immigration.

 

Australian Government Departments are not bound to advice provided on the phone, and I have had situations recounted to me which have had adverse consequences for the individual who thought s/he was getting reliable information from the ATO/DIBP.

 

Advice on matters such as tax in Australia should be sought from a registered tax agent.

 

Similarly migration law issues are best explored with a registered migration agent.

 

Best regards.

Link to comment
Share on other sites

Guest John Horvath

Alan comments are to be respected as often the client services officers initially taking a call can not answer your questions especially if they are complex. Armed with a basic knowledge of the issues seek professional advice on the issue from a suitable professional. Websites in Australia are good in providing the basics only to work from - they should never be relied on for an answer to complex issues - so seek a professional in these cases.

 

cheers john

Link to comment
Share on other sites

I am looking for some general advice just now and depending on how things go I will pay to get specialised advice in due course.

 

I still have a business in the UK despite living in Aus now for three and a half years as a permanent resident and thus paying tax on my worldwide income here. With the exchange rate looking better than it has since I moved out I am wondering if the time is getting nearer for selling it. So here are my questions:

 

1) I believe if I were to sell the business now, I would be liable for tax on any increase in value since June 2010 when I moved out, which would be taxed at my prevailing tax rate in Aus as well as capital gains tax in the UK on the difference between what I bought the business for and what it was worth when I emigrated - is this correct?

 

2) presuming the value of the business hadn't changed since 2010 but the exchange rate had gone from 1.67 to the pound to say 2.00 would I be liable for tax on the increase in value i.e. on $.33 for every pound I sold it for?

 

3) Now this is the tricky one - The guy who manages the business for me would love to emigrate out here too. Is there a way I could sell one of my branches of my business in the UK (I have 3) and then buy one out here, sponsor him to manage it and then bit by bit sell the other branches in the UK and replace them with ones here. aside from the visa questions, what would be the tax implications in doing this??

 

I understand this all may all be too technical to ask on here but as I said, just now I am just mulling it over and am not ready to spend the bucks for professional advice.

 

NWM

 

As others have said you will need specialist advice here as there are doubtless many possible options and choosing the wrong ones could prove costly. Good advice would more than pay for itself but who do you go to for that would be my question.

 

Just intrigued but I would be interested to hear in the future what you actually ended up doing and why.

Link to comment
Share on other sites

Do not rely on advice given verbally by the ATO - or indeed the Department of Immigration.

 

Australian Government Departments are not bound to advice provided on the phone, and I have had situations recounted to me which have had adverse consequences for the individual who thought s/he was getting reliable information from the ATO/DIBP.

 

Advice on matters such as tax in Australia should be sought from a registered tax agent.

 

Similarly migration law issues are best explored with a registered migration agent.

 

Best regards.

 

Alan - you don't happen to know any tax specialists who are registered in both Aus and the UK who also offer Migration advice do you? :wink:

 

NWM

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...