Keith and Linda Posted August 13, 2017 Share Posted August 13, 2017 On 11/08/2017 at 12:27, Taff said: When my wife's super kicks in, given a range of current exchange rate fluctuation, we should get between £40 and £60k per year. That's a good super there Taff, hope you have allowed for the aussie tax element on non-resident super payments in your calculations. Have a happy and enjoyable retirement Quote Link to comment Share on other sites More sharing options...
Taff Posted August 14, 2017 Author Share Posted August 14, 2017 Thanks K&L, we're hoping to be able to maintain our residency status to offset that. Getting advice off our regular accountant. 1 Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted August 14, 2017 Share Posted August 14, 2017 49 minutes ago, Taff said: Thanks K&L, we're hoping to be able to maintain our residency status to offset that. Getting advice off our regular accountant. Thanks Taff, I am sure a few on here would like to know how you get on with residency status so please keep us informed..............by PM rather than broadcasting it, never know if big brother is watching! Quote Link to comment Share on other sites More sharing options...
Collie Posted August 14, 2017 Share Posted August 14, 2017 4 hours ago, Keith and Linda said: That's a good super there Taff, hope you have allowed for the aussie tax element on non-resident super payments in your calculations. Have a happy and enjoyable retirement Australia and the UK have a double taxation agreement. Any tax paid in Australia will be credited against any UK liability and may even lead to a refund if tax has been overpaid. Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted August 14, 2017 Share Posted August 14, 2017 52 minutes ago, Collie said: Australia and the UK have a double taxation agreement. Any tax paid in Australia will be credited against any UK liability and may even lead to a refund if tax has been overpaid. Not quite as simple as that regarding Aus pensions, residency and tax, as an Australian resident your Pension (super) would be paid out generally tax free, as a non resident the whole pension but particularly a lump sum may be subject to a an Aus tax how much of that you would get back in the UK and how much UK tax liability ones pension has will all be down to an individuals income and allowances, but whichever way it would appear that Aus pension will be taxable if one is a UK resident However there are some good accountants on this forum whom could shed a more definitive guiding light on the subject. Quote Link to comment Share on other sites More sharing options...
Collie Posted August 14, 2017 Share Posted August 14, 2017 Well, speaking as an accountant, (albeit not a tax expert), the principles of a Double taxation agreement should stand. Once their super kicks in, the poster will be tax resident in the UK and will liabile for tax on their worldwide income. They will be given a credit for any tax withheld in Australia against their UK liability. If the credit is greater than their laibility, they should receive a refund. The lump sum element may be more complicated, however the principle is that you will not pay tax twice on the same income. Quote Link to comment Share on other sites More sharing options...
Keith and Linda Posted August 14, 2017 Share Posted August 14, 2017 13 minutes ago, Collie said: Well, speaking as an accountant, (albeit not a tax expert), the principles of a Double taxation agreement should stand. Once their super kicks in, the poster will be tax resident in the UK and will liabile for tax on their worldwide income. They will be given a credit for any tax withheld in Australia against their UK liability. If the credit is greater than their laibility, they should receive a refund. The lump sum element may be more complicated, however the principle is that you will not pay tax twice on the same income. Though I never brought the double taxation agreement into this topic, the agreement does not stop tax liability altogether, which is the point I did bring in. Being a UK resident your Aus pension (or maybe 90% of) is tax assessable in the UK. Being an Aus resident it is not. With the sums the poster was quoting then there is a very good chance that tax will be payable if he is deemed to be a UK resident for uk tax purposes, note the ATO could, separate to any UK decision, also rule that he is not an Aus resident for tax purposes too. Quote Link to comment Share on other sites More sharing options...
Collie Posted August 14, 2017 Share Posted August 14, 2017 Ok, I don't see what you are arguing with in my post. The double taxation agreement is relevant as they are resident in 1 country and will have income from another. The poster will be UK tax resident & domiciled (after living in the UK for 5 years) and will be assessed under the UK tax rules at that time. If they have not lived in Australia for 5 years, they will not be tax resident in Australia. That is pretty black & white. Quote Link to comment Share on other sites More sharing options...
Taff Posted August 17, 2017 Author Share Posted August 17, 2017 I hope your advice is right Collie mate, it sounds in line with what our accountant is telling us.... Quote Link to comment Share on other sites More sharing options...
NicF Posted August 17, 2017 Share Posted August 17, 2017 On 8/14/2017 at 16:48, Collie said: Ok, I don't see what you are arguing with in my post. The double taxation agreement is relevant as they are resident in 1 country and will have income from another. The poster will be UK tax resident & domiciled (after living in the UK for 5 years) and will be assessed under the UK tax rules at that time. If they have not lived in Australia for 5 years, they will not be tax resident in Australia. That is pretty black & white. I think Keith and Linda is actually trying to make a different point in that if Taff and OH were retiring in Australia they would be able to access their super funds tax free whereas if they retire overseas they will be taxed on them. If they are doing their sums based on getting the super tax free then they might not have taken any possible tax liability in to account. Like you say, due to the double taxation agreement, depending on the actual amount of income drawn there may not be a tax liability in the UK and they may get a refund for tax paid in Australia. Quote Link to comment Share on other sites More sharing options...
Taff Posted August 17, 2017 Author Share Posted August 17, 2017 We will be in Aus when we retire, and I will be claiming my lump sum while still resident. Quote Link to comment Share on other sites More sharing options...
Taff Posted September 7, 2017 Author Share Posted September 7, 2017 On 8/1/2017 at 20:55, fergiep said: Our biggest expenses are a loan, our mortgage and nursery fees for our youngest whilst i study. Our not having a mortgage, loan, or school aged kids will be a blessing then. Quote Link to comment Share on other sites More sharing options...
BillW Posted December 5, 2017 Share Posted December 5, 2017 Hello, Am keen to learn about any financial planning / tax traps that seem to be hinted at in the above postings. Any known good threads I should read ? Am currently searching through all posts that mention superannuation - Anybody got any recomendations regarding companies they found helpful, giving good advice, when they made the shift ? Bill Quote Link to comment Share on other sites More sharing options...
bristolman Posted December 5, 2017 Share Posted December 5, 2017 On 07/09/2017 at 08:37, Taff said: Our not having a mortgage, loan, or school aged kids will be a blessing then. We have school age kids from that list and costs are minimal. Quote Link to comment Share on other sites More sharing options...
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