Dual UK/AUS Nationality moving from UK to Aus indefinitely

[67CooperS]

Hi,

 

We (wife and I) both hold dual nationality of Aus and UK and are soon to be packing things up in London and heading to Australia indefinitely. We have a few loose ends to close off and obviously want to be as tax efficient and informed as possible.

General (personal) tax

1. We have been working through our own limited company which will be shut down and the capital extracted via entrepreneurs relief. Having declared and paid all the tax in the UK to get the money out of the company, do i need to declare anything further in Aus?

 

2. Are there any timing issues with different tax years i need to be wary of in terms of commencing employment in Aus that would subject the entire amount plus new earnings to a higher rate of tax?

3. When do i submit my UK tax return (ie wait until year end or on departure)?

 

4. We also own a single property in the UK that we intend to keep and rent out. We are relocating to Aus so there are no delusions about it being our permanent residence, although we may move back at some point if all is not greener on the other side. The house is in joint names and will obviously be earning income for us in the UK. Do I;

- Pay tax on the income in the UK and that's the end of the story, but requires a UK tax return each year

- Declare the income in Aus in its entirety,or

- Declare only the net income after mortgage (interest component) and any management fees and other deductions are subtracted?

 

5. What deductions are permitted? ie repairs/maintenance etc? Do I need to consider UK or Aus taxation law for the deductions? I presume this depends whether the whole rental income is required to be declared in Aus or only the net income?

 

Thanks!

[Andrew from Vista Financial]

Hello

 

1) If you are coming to Australia with the cash from having sold the UK business and meeting your tax obligations in the UK then nothing to declare in Australia as I understand.

 

2) Not that I can think off, not to the point that it would warrant timing of migration, tax is paid on a PAYG basis throughout the year and at the end of the year when your tax return is processed any over payment of tax is refunded and any under payment required to be paid.

 

3) https://www.gov.uk/tax-right-retire-abroad-return-to-uk

 

4/5) http://www.pomsinoz.com/forum/financial-advice-ask-vista/233537-tax-uk-rental-income.html

 

 

HTH

 

Andy

Edited May 29, 2015 by Andrew from Vista Financial