Stella Anne Posted June 25, 2016 Share Posted June 25, 2016 We are duel Australian/ British citizens and we had planned to move back to the UK ,we are retired and thought we would like to spend our retirement there or maybe reside four or have years there. Now with all the changes with the Brexit result we do not know how things will be and if it would be a good move for us. we had planned to buy a home over there and have a few years travelling the UK. I wondered if many more people were faced with this dilemma and what thoughts they have. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted June 25, 2016 Share Posted June 25, 2016 Not sure what difference Brexit would make to your plans. In fact you should benefit from falls in the GBP. Link to comment Share on other sites More sharing options...
srh82 Posted June 25, 2016 Share Posted June 25, 2016 Maybe go back for a visit and see how you feel? Link to comment Share on other sites More sharing options...
bristolman Posted June 25, 2016 Share Posted June 25, 2016 Brexit shouldn't make any difference to you at all. The exchange rate can be affected by all sorts of things, it's still 40c higher than when we left 4 years ago. Life is short, go for it. We are loving it. Link to comment Share on other sites More sharing options...
Marisawright Posted June 25, 2016 Share Posted June 25, 2016 As others have said, Brexit might help you as the pound is weak right now, so if you are transferring money then you will get more for your Australian dollars. Only one very important question: are you already getting the Australian government pension? If so, then check with Centrelink to see if the move will reduce the amount you're getting. If you're not old enough yet, then be aware that if you move before you reach pension age, you will never be able to claim the Australian pension and you may not be able to claim the full British pension either. So that could have serious implications for your financial health. Link to comment Share on other sites More sharing options...
Stella Anne Posted June 26, 2016 Author Share Posted June 26, 2016 Thanks everyone for the feedback, we do get a full Australian pension but i guess our main worry was if we wish to return in a year or so if our money would be worth very little with a poor exchange rate back to dollars. i know we can't have it all ways, just wish there was a stable, pretty even exchange rate. But we hopefully can continue planning our retirement adventure. Link to comment Share on other sites More sharing options...
Patphillips47 Posted June 26, 2016 Share Posted June 26, 2016 Your Centrelink pension should be portable as they call it but you need to find out at what rate I think currently to get full rates you need to have had 35 years working life in Oz between the age of 16 and retirement When we went back after 26 weeks my hubbies was cut to 86% because of his age when we had emigrated Link to comment Share on other sites More sharing options...
Gbye grey sky Posted June 26, 2016 Share Posted June 26, 2016 Thanks everyone for the feedback, we do get a full Australian pension but i guess our main worry was if we wish to return in a year or so if our money would be worth very little with a poor exchange rate back to dollars. i know we can't have it all ways, just wish there was a stable, pretty even exchange rate. But we hopefully can continue planning our retirement adventure. Hedge your bets and leave most of your savings in AUD I would say. Most experts agree that Britain is heading in a bad direction now but it should not be an issue if you are not returning there to work, have a mortgage or anything like that so you should be fine. Link to comment Share on other sites More sharing options...
bristolman Posted June 26, 2016 Share Posted June 26, 2016 Thanks everyone for the feedback, we do get a full Australian pension but i guess our main worry was if we wish to return in a year or so if our money would be worth very little with a poor exchange rate back to dollars. i know we can't have it all ways, just wish there was a stable, pretty even exchange rate. But we hopefully can continue planning our retirement adventure. The thing is its impossible to know which way exchange rates will go, it's possible it would go up to over $2 or drop under $1.50. The UK has a strong stable economy and that isn't going to change. Link to comment Share on other sites More sharing options...
Thom Posted June 27, 2016 Share Posted June 27, 2016 We intend retiring back to the UK in Feb 2018. From the time I moved out here I've seen the $Au as low as 33p and as high 68p, at present 55p.\ Brexit shouldn't really affect your plans Link to comment Share on other sites More sharing options...
JB46 Posted July 21, 2016 Share Posted July 21, 2016 Just a thought regarding your tax status. The UK tax year is from the 6th April. If you remain in the UK for more than 183 days within a tax year you will be liable for UK tax. This could mean any capital brought into the country as a tax liable resident is taxed regardless of it's source eg super payments, proceeds of the sale of property. Suggest you get some good advice. The UKTO is surprisingly helpful, but it may be worth sourcing a local financial advisor. Good luck Link to comment Share on other sites More sharing options...
Guest Posted July 21, 2016 Share Posted July 21, 2016 Just a thought regarding your tax status. The UK tax year is from the 6th April. If you remain in the UK for more than 183 days within a tax year you will be liable for UK tax. This could mean any capital brought into the country as a tax liable resident is taxed regardless of it's source eg super payments, proceeds of the sale of property. Suggest you get some good advice. The UKTO is surprisingly helpful, but it may be worth sourcing a local financial advisor. Good luck There is no tax payable on proceeds from a home that is your main residence and any tax due on super withdrawn will be paid in Australia, basically any cash you bring over from Australia whatever the source will have had the appropriate tax paid there and is not taxed in the UK. No harm in checking with HMRC though. Link to comment Share on other sites More sharing options...
Guest Posted July 21, 2016 Share Posted July 21, 2016 There is no tax payable on proceeds from a home that is your main residence and any tax due on super withdrawn will be paid in Australia, basically any cash you bring over from Australia whatever the source will have had the appropriate tax paid there and is not taxed in the UK. No harm in checking with HMRC though. Sorry re-read the whole thing, I didn't realise you were retired - you will get taxed on your Australia pension I believe but only from the day you enter the UK and only if it is more than the 10,000GBP tax free limit (per person) - any savings etc. that you bring over in cash aren't taxed but pension income is if it's more than 10,000GBP a year Link to comment Share on other sites More sharing options...
Petals Posted July 21, 2016 Share Posted July 21, 2016 As has been said you need to be living in Australia when you apply for a Centrelink pension. Also be aware that it may be less than what you receive living in Australia as they remove any allowances that are given. My friend and her husband returned to NZ to live and she is a Kiwi and he is Australian and his pension was reduced because of this. They have now returned to live in Australia so it was a very expensive exercise moving back. I would take a long holiday in UK to see if you like it on a long term basis. My parents returned for a long holiday after they retired, they lasted three weeks and returned. We all love our roots and we spent three months over there before my husband died, loved every minute of it but could not live there long term. Link to comment Share on other sites More sharing options...
Marisawright Posted July 22, 2016 Share Posted July 22, 2016 I would say, if you're even slightly unsure whether you'll stay, just keep your Australian accounts open and leave your money in Australia until you decide. Keep your Australian home and rent it out, and find a nice rental place in the UK. We set up an account with Moneycorp and it was SO simple to transfer a lump sum periodically to our UK bank account. Link to comment Share on other sites More sharing options...
flag of convenience Posted July 22, 2016 Share Posted July 22, 2016 Earnings from things like rentals will be taxed at 25% by the Australian government I believe. Link to comment Share on other sites More sharing options...
Marisawright Posted July 22, 2016 Share Posted July 22, 2016 Earnings from things like rentals will be taxed at 25% by the Australian government I believe. 30% actually, but you won't be taxed if you're not making a profit. When you consider the costs of selling and having to buy again if the UK trial doesn't work out, paying a bit of tax isn't that material in the scheme of things. Link to comment Share on other sites More sharing options...
Keith and Linda Posted July 22, 2016 Share Posted July 22, 2016 We are duel Australian/ British citizens and we had planned to move back to the UK ,we are retired and thought we would like to spend our retirement there or maybe reside four or have years there. Now with all the changes with the Brexit result we do not know how things will be and if it would be a good move for us. we had planned to buy a home over there and have a few years travelling the UK. I wondered if many more people were faced with this dilemma and what thoughts they have. We are looking at spending 6 months in each country, well at least 6 months and 1 day in Aus for tax purposes, however we do have to research this side of it some more. We may well be buying a property in the UK when we are there at Christmas. Not sure what we will do about renting the houses out during the 6 months when we will not be using them, maybe holiday lets for friends (as they will be furnished) temp homes for emigrating and or ping pong poms? How the building and contents insurances will work for such. Then there is a car for UK and that insurance too. Link to comment Share on other sites More sharing options...
flag of convenience Posted July 22, 2016 Share Posted July 22, 2016 30% actually, but you won't be taxed if you're not making a profit. When you consider the costs of selling and having to buy again if the UK trial doesn't work out, paying a bit of tax isn't that material in the scheme of things. Short term I suppose. But for a rental paying tax on earning along with management fees to look after property, followed by rates, water and repairs mounts up to a considerable sum on the total. Not taking into account wear and tear and other possible mishaps. I suppose no wonder why many foreign investors lock and leave vacant. Link to comment Share on other sites More sharing options...
Keith and Linda Posted July 22, 2016 Share Posted July 22, 2016 Short term I suppose. But for a rental paying tax on earning along with management fees to look after property, followed by rates, water and repairs mounts up to a considerable sum on the total. Not taking into account wear and tear and other possible mishaps. I suppose no wonder why many foreign investors lock and leave vacant. But surely the rates water and repairs will still apply vacant or not. Also if having to pay tax on it then one must be earning some money out of it. Link to comment Share on other sites More sharing options...
flag of convenience Posted July 22, 2016 Share Posted July 22, 2016 But surely the rates water and repairs will still apply vacant or not. Also if having to pay tax on it then one must be earning some money out of it. It adds to the overall cost. It gets to a point of questioning the validity of having strangers living in ones house. Of course there is profit. But a 30% tax on all earnings from first cent earned, such as rent while outside of Australia, on top of all other costs doesn't allow a lot for those hoping to top up the meagre Australian Aged Pension with other sources, if living out of the country. Link to comment Share on other sites More sharing options...
Guest Posted July 22, 2016 Share Posted July 22, 2016 It adds to the overall cost. It gets to a point of questioning the validity of having strangers living in ones house. Of course there is profit. But a 30% tax on all earnings from first cent earned, such as rent while outside of Australia, on top of all other costs doesn't allow a lot for those hoping to top up the meagre Australian Aged Pension with other sources, if living out of the country. My experience of renting out a property overseas I have used as a warning to others many times but the ATO is very generous to landlords so owning a house in Australia and renting it out probably is worthwhile - ultimately if it's empty there is no question that it will cost you money & an empty property is a risk, it only takes a loose tile or a burst pipe to go undetected for months and you can be talking serious repair bills. If you rent it out then there are many expenses, including depreciation that can be written off against tax and most people end up paying no tax at all - in fact I found owning a rental property in the UK reduced my Australian tax from employment. In the end you can only pay tax on profit which means you are getting 70% of 'something' and probably closer to 90% when allowances are taken into account. The HMRC is not so generous - there is no negative gearing and recently they have stopped mortgage interest being considered an expense (not sure if that is in yet) plus my experience as a landlord in the UK and a tenant in Australia is that the law very much favours the tenant in the UK and the landlord in Australia. I wouldn't recommend renting out a house in the UK, except as a holiday let (Airbnb maybe) whilst you're overseas especially if you plan to come and go though. I'd be tempted to own a house in the UK and a motor home in Australia but it would work the other way around too - or maybe do house swaps?? It's getting much more sophisticated these days and you don't have to do direct swaps - Love Home Swap is one I looked into. You offer your home whilst it's empty and get points which you can then trade to stay in someone else's - you can of course still do direct swaps. Link to comment Share on other sites More sharing options...
Marisawright Posted July 22, 2016 Share Posted July 22, 2016 I suppose no wonder why many foreign investors lock and leave vacant. They are mad, IMO. I have rented out several properties and if your property is in a good location and you have a good agent who is fussy about who they rent to, there's no reason why you should have problems. Anyone can be unlucky but it's pretty silly to avoid renting altogether, just because you're scared of a bad tenant. There is such a thing as landlord's insurance! Like I said, if you don't make a profit on renting out your property then you won't pay any tax at all. It's ridiculous to suggest that rates, water and repairs wouldn't be covered by the rent, most people are able to cover all those plus a substantial mortgage payment with the rental income. Consider, if the OP owns a substantial home in Australia it will cost them several thousands of dollars in agent's fees to sell it, and several thousands of dollars in stamp duty should they decide to return and have to buy another home. Link to comment Share on other sites More sharing options...
Guest Posted July 22, 2016 Share Posted July 22, 2016 We are looking at spending 6 months in each country, well at least 6 months and 1 day in Aus for tax purposes, however we do have to research this side of it some more. We may well be buying a property in the UK when we are there at Christmas. Not sure what we will do about renting the houses out during the 6 months when we will not be using them, maybe holiday lets for friends (as they will be furnished) temp homes for emigrating and or ping pong poms? How the building and contents insurances will work for such. Then there is a car for UK and that insurance too. It is very difficult these days to get a mortgage in the UK if you are overseas so if you're not a cash buyer that will be one challenge to overcome. I wouldn't rent on a shorthold assured tenancy as there is no guarantee a tenant will move out at the end of the 6 months, Airbnb and the likes would work though but you would need someone to manage it for you, clean between visitors, be around for emergencies etc. Insurance would be no problem, you'd be stung with cancellation charges as you have to switch from a holiday let insurance such as this http://www.schofields.ltd.uk/holiday-let-insurance/ to owner-occupied insurance. I wrongly assumed that since a rented property had higher risks I could keep the insurance whilst living in it myself but was told had I made a claim it would not have been valid - luckily I didn't need to! If the car is off the road for 6 months you can save money on tax by advising the DVLC and reduce the insurance to 3rd party, fire and theft. Or maybe consider house swaps instead? These can sometimes come with a car! Link to comment Share on other sites More sharing options...
Keith and Linda Posted July 22, 2016 Share Posted July 22, 2016 It is very difficult these days to get a mortgage in the UK if you are overseas so if you're not a cash buyer that will be one challenge to overcome. I wouldn't rent on a shorthold assured tenancy as there is no guarantee a tenant will move out at the end of the 6 months, Airbnb and the likes would work though but you would need someone to manage it for you, clean between visitors, be around for emergencies etc. Insurance would be no problem, you'd be stung with cancellation charges as you have to switch from a holiday let insurance such as this http://www.schofields.ltd.uk/holiday-let-insurance/ to owner-occupied insurance. I wrongly assumed that since a rented property had higher risks I could keep the insurance whilst living in it myself but was told had I made a claim it would not have been valid - luckily I didn't need to! If the car is off the road for 6 months you can save money on tax by advising the DVLC and reduce the insurance to 3rd party, fire and theft. Or maybe consider house swaps instead? These can sometimes come with a car! Thanks for that Lady R. We would be a cash buyer of a small house (having down sized here in OZ) though a mortgage would be possible through linked HSBC accounts in each country. We have looked at other options like house swap but found them not to be suitable for reliability of location (need to be near grandchildren / family) and timing in getting somewhere as and when needed for the length of time needed, we would have more control over our own home and be certain when planning well ahead 1 or 2 years. There would be, for Linda especially, more peace of mind and the feeling of it being a home. We would also have to consider car storage so having a house and garage also makes some sense. A car included with a house swap would also be a big worry, accidents, breakdowns, servicing etc. (is it even road worthy), too many experiences of such has led to us now always hiring a car when on holiday rather than borrow one. We have family in the UK whom can manage and clean as they have a some what similar business, here in OZ would take a little more thinking about. Link to comment Share on other sites More sharing options...
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