Still here and still feel the pull

[ramot]

31 minutes ago, Jon the Hat said:

If I were in your shoes I think I would rent out my house, and come to Australia and rent somewhere nice near the kids.  You might not be able to BUY nearby, but perhaps you can rent?  Especially if your kids help out a bit.

I saw you posted something about high tax cost selling your home later, but I believe you only pay AU tax on the capital gain from the day you become a tax resident, and in the UK I am pretty sure you pay CGT from the date it stops being your main residence, so in the greater scheme of things not a big issues.

Always worth getting advice from Alan Collet, he has helped so many posters with tax  advice.  

[Nanna]

Thank you but we need to be physically UK residents and it would have to be our main home  to avoid tax according to gov.uk and of course we would be Australian residents.

 

 

[ramot]

2 hours ago, Nanna said:

Hi and thank you.

The flight is gruelling and gets worse each time especially as we leave Australia never knowing when we can meet again.

One of the reasons this began was because we all worried about when only one of us is left or we needed the support of our family as we age so that is a factor in the mix.  Our sons so want us there just in case !  

It's very early morning and I don't sleep now as it is occupying my brain too much.

But as I am more obsessed with them I am asking hubby to decide as he is a bit less emotional altho he would like to live there if it wasn't so damned expensive and we didn't lose so much security.

So 2 days to go to sign on this house or not.  Either way I will cry, scream and I don't feel I will ever recover whichever way it goes. 

 

 

 

I Have no idea if we would be much better off in UK as retirees than here. Obviously it depends on your income, retirees here get help on electricity cost, have a seniors card, not sure that helps much, we aren’t eligible for a pension or concession card, but get cheaper prescriptions when we reach the safety net, usually 6 months of the year. The main thing that does affect us is the low exchange rate at the moment, it was $3 to the pound when we came, but despite that we certainly aren’t on the bread line. 

[Nanna]

3 hours ago, Nanna said:

Thank you but we need to be physically UK residents and it would have to be our main home  to avoid tax according to gov.uk and of course we would be Australian residents.

https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-calculating-taxable-gain-or-loss

 

 

[Jon the Hat]

4 hours ago, Nanna said:

Thank you but we need to be physically UK residents and it would have to be our main home  to avoid tax according to gov.uk and of course we would be Australian residents.

 

 

Its not quite that simple, yes you would be liable for some CGT tax, but you get tax relief for years in which is was your primary residence (i.e. you spent more than 90 days in it) + 9 months, so in both the UK and Australia you pretty much only pay on any increase in the value after you move.  This is not my specialty but I am a chartered accountant so I think this is definitely worth you getting some professional advice from before you sell. 

Please please please do not base this on your reading of a website of what someone on the phone from the HMRC told you - they really don't know what they are talking about in many cases.

@Alan Collett am I completely of base here?

[Nanna]

I did read further in the site that as non UK residents we pay a gain on any profit we make since 2105  - our house has doubled in value since then.  

We also pay UK tax on the rent, agency fees for looking after the booking  and property/ tenants rent insurance ( I think that totalled over 20% if the gross annual rent). and tax in the U K .  We then pay the higher value between the UK 20% tax and the Australian 35% tax as we would also receive  Australian wages, state UK pension and a small UK private pension taking us both over $45000 per annum.  

Our house, altho seafront and 4 beds would command £1800 - £2000 PER MONTH.  so factor in all the above and its never easy! If @Alan Collet knows different and can answer within 24 hours from now it might save us making a horrendous mistake.

 

[ramot]

27 minutes ago, Nanna said:

I did read further in the site that as non UK residents we pay a gain on any profit we make since 2105  - our house has doubled in value since then.  

We also pay UK tax on the rent, agency fees for looking after the booking  and property/ tenants rent insurance ( I think that totalled over 20% if the gross annual rent). and tax in the U K .  We then pay the higher value between the UK 20% tax and the Australian 35% tax as we would also receive  Australian wages, state UK pension and a small UK private pension taking us both over $45000 per annum.  

Our house, altho seafront and 4 beds would command £1800 - £2000 PER MONTH.  so factor in all the above and its never easy! If @Alan Collet knows different and can answer within 24 hours from now it might save us making a horrendous mistake.

 

Go onto family/partner visas, then the brand new parents visa thread, Alan Collett has replied to a post, and all his contact details are there, so contact him today via his UK tel no, as he has offices in both Australia and UK, so someone there might be able to help you straight away

023 81 66 11 55 

hope that helps

ps we have rented out property for over 20 years in UK from overseas, and never had a problem, we have always used  a management company

Edited August 31, 2022 by ramot

[Barnyrubble]

I can't find his uk phone number. Anyone have Alan collects please?

[Nemesis]

9 minutes ago, Barnyrubble said:

I can't find his uk phone number. Anyone have Alan collects please?

Its in the post above yours,

[Barnyrubble]

Oops.  Found it.  

 

[Alan Collett]

12 hours ago, Jon the Hat said:

Its not quite that simple, yes you would be liable for some CGT tax, but you get tax relief for years in which is was your primary residence (i.e. you spent more than 90 days in it) + 9 months, so in both the UK and Australia you pretty much only pay on any increase in the value after you move.  This is not my specialty but I am a chartered accountant so I think this is definitely worth you getting some professional advice from before you sell. 

Please please please do not base this on your reading of a website of what someone on the phone from the HMRC told you - they really don't know what they are talking about in many cases.

@Alan Collett am I completely of base here?

Your memory of UK tax serves you well!

Happy to have a freebie initial chat with any who need assistance with their tax affairs.

Best regards.

[Marisawright]

12 hours ago, Nanna said:

we would also receive  Australian wages, state UK pension and a small UK private pension taking us both over $45000 per annum.  

So you are saying that if you keep your UK house and rent it out, you would have a gross income of over $90,000 per annum?  You're worrying about nothing.  You'll be able to live very comfortably on that. 

I say that from experience.  My husband and I live in Melbourne, and we are renting.  The rents here are much higher than the Tweed coast.  We are about your age (69 and 70).  We would have absolutely no trouble living on that income.   We are not frugal, either. We eat out frequently.  

[Jon the Hat]

12 hours ago, Nanna said:

I did read further in the site that as non UK residents we pay a gain on any profit we make since 2105  - our house has doubled in value since then.  

We also pay UK tax on the rent, agency fees for looking after the booking  and property/ tenants rent insurance ( I think that totalled over 20% if the gross annual rent). and tax in the U K .  We then pay the higher value between the UK 20% tax and the Australian 35% tax as we would also receive  Australian wages, state UK pension and a small UK private pension taking us both over $45000 per annum.  

Our house, altho seafront and 4 beds would command £1800 - £2000 PER MONTH.  so factor in all the above and its never easy! If @Alan Collet knows different and can answer within 24 hours from now it might save us making a horrendous mistake.

 

Alan has confirmed I am correct above!  That's two accountants telling you your understanding of the tax implication is way off.  Rent your home out and move - yes it has some hassle and overhead but find a good agent and you will find it much easier.  

[Parley]

I do wonder if Nanna is like this with every decision in her life. Some people can never make a decision.

What does hubby want to do? Is he just leaving Nanna to decide at the deadline whether to sign the contract and to screw the buyers at the last minute.

Really I'm not sure obsessing about money and the cost of the weekly shop at Woolies is even a factor. In your golden years you might as well just spend your money. Your kids will anyway when they inherit it from you.

If Nanna hasn't decided in the last 6 months what she (on behalf of her husband) wants to do she will never decide in the last 24 hours. It doesn't matter what anyone else advises her.

[Nanna]

I have never been indecivive before and of course money factors into life/lifestyle at any age/stage in life.  It's not about spending in its about spending it to enjoy life in the best way possible.

 

 

[Marisawright]

1 hour ago, Parley said:

I do wonder if Nanna is like this with every decision in her life. Some people can never make a decision.

What does hubby want to do? Is he just leaving Nanna to decide at the deadline whether to sign the contract and to screw the buyers at the last minute.

Really I'm not sure obsessing about money and the cost of the weekly shop at Woolies is even a factor. 

What’s your view @Parley? You’re retired too. Do you think they need to worry if they have $90,000 a year?

[Nanna]

Watching the exchange rate forecasts for the next fews year isn't helping!!

[Jon the Hat]

1 hour ago, Nanna said:

I have never been indecivive before and of course money factors into life/lifestyle at any age/stage in life.  It's not about spending in its about spending it to enjoy life in the best way possible.

I still think rent your place out and see how you like life over there.  Low risk, low cost.  Rent somewhere nice near the kids and grandkids.  What's not to like?

[ramot]

1 minute ago, Jon the Hat said:

I still think rent your place out and see how you like life over there.  Low risk, low cost.  Rent somewhere nice near the kids and grandkids.  What's not to like?

Plus 1 

[Nanna]

We were discussing that till we saw the currency exchange predictions for the next 2 years or so.  So as the song says, it's now or never.

But thank you

[FirstWorldProblems]

Some positivity for you.....

As hard as your situation is and as challenging as making the decision feels, from all you've shared with us you do have options and are in a better place than many.

I've been on this forum for a few years, many of the others have been here far longer and have seen a lot of people in a much tougher position.  Those who have financial constraints so tight that if they make the move, the costs involved will deplete them and they simply couldn't afford to move back.  There are even more people who post about how they've lived in Australia for 15 years, and haven't been able to afford to visit the UK in all that time and are desperate to move back.  What a tough position to be in.   

Comparatively yours is much better position.  I agree with others suggesting you test the water with a 6 month rental.    It seems like a viable option for you and whilst it might cost a bit, it will insulate you from the far greater costs of making the move and having to revert.

[Jon the Hat]

1 hour ago, Nanna said:

We were discussing that till we saw the currency exchange predictions for the next 2 years or so.  So as the song says, it's now or never.

But thank you

I can guarantee the exchange rate won't move nearly as much as moving and moving back would cost you

[Cup Final 1973]

I can’t believe that Nanna is seriously thinking of backing out of selling her house with 24 hours to go.  I feel for the prospective buyers!

[Nanna]

That is not the case.  

[Bulya]

15 hours ago, Parley said:

I do wonder if Nanna is like this with every decision in her life. Some people can never make a decision.

What does hubby want to do? Is he just leaving Nanna to decide at the deadline whether to sign the contract and to screw the buyers at the last minute.

Really I'm not sure obsessing about money and the cost of the weekly shop at Woolies is even a factor. In your golden years you might as well just spend your money. Your kids will anyway when they inherit it from you.

If Nanna hasn't decided in the last 6 months what she (on behalf of her husband) wants to do she will never decide in the last 24 hours. It doesn't matter what anyone else advises her.

Agree.  This whole thing is ludicrous