The Brand New PIO Parents Visa thread

[cathandtone]

G'day Linday

 

We're approaching decisions for ourselves on this one. One query: Do they withhold UK tax on your UK pensions? If so, how much?

 

Thanks in anticipation, Mike

 

 

I'll answer this one if I may. Your state pension is paid gross regardless of whether you are here or in the UK. Your current tax code will be applied to all other pensions until such time as you apply to have your UK income exempt of tax. We finally received the magic NT code a couple of weeks ago and the refunds are drifting in to our accounts. It took about 5 months from sending off the forms. Most of our pensions are paid direct to our Australian bank account by our pensions providers; this is our only income so sadly we are not in a position to pick and choose when to bring the funds across ourselves. In practice it works for us, we are subject to the vagaries of the exchange rate but it's the price we have to pay.

 

Best wishes

Cath

Edited March 30, 2012 by cathandtone
poor spelling

[Guest]

I'll answer this one if I may. Your state pension is paid gross regardless of whether you are here or in the UK. Your current tax code will be applied to all other pensions until such time as you apply to have your UK income exempt of tax. We finally received the magic NT code a couple of weeks ago and the refunds are drifting in to our accounts. It took about 5 months from sending off the forms. Most of our pensions are paid direct to our Australian bank account by our pensions providers; this is our only income so sadly we are not in a position to pick and choose when to bring the funds across ourselves. In practice it works for us, we are subject to the vagaries of the exchange rate but it's the price we have to pay.

 

Best wishes

Cath

 

Hi Cath

As I posted earlier, would your Oz bank allow you a sterling account, I would ask the question then you could have your pension paid in sterling and choose your time to transfer. Worth asking. I shall be asking my bank and also keeping a UK bank account open.

[Linday]

G'day Linday

 

We're approaching decisions for ourselves on this one. One query: Do they withhold UK tax on your UK pensions? If so, how much?

 

Thanks in anticipation, Mike

 

Hi Mike

We have just become permanent on a 143 so are now liable to pay tax in Australia on our worldwide income. We were advised to apply to the UK tax authorities to have our pensions paid without interest taken under the double taxation agreement with Australia by completing a form called Aust-Indiv 2003. Using the same form you can apply for any interest on savings to be paid gross as well.

 

http://www.hmrc.gov.uk/cnr/form_aust2003.htm

 

Your state pension will be paid without tax taken off, but I think all the pensions which are drawn from the UK will be liable to Australian tax. I don't think the Oz allowances are as generous as the UK ones so we are probably worse off than we would be in the UK.

[MikenSueNW3]

Hi Mike

We have just become permanent on a 143 so are now liable to pay tax in Australia on our worldwide income. We were advised to apply to the UK tax authorities to have our pensions paid without interest taken under the double taxation agreement with Australia by completing a form called Aust-Indiv 2003. Using the same form you can apply for any interest on savings to be paid gross as well.

 

http://www.hmrc.gov.uk/cnr/form_aust2003.htm

 

Your state pension will be paid without tax taken off, but I think all the pensions which are drawn from the UK will be liable to Australian tax. I don't think the Oz allowances are as generous as the UK ones so we are probably worse off than we would be in the UK.

 

Very many thanks, Linday. Your link takes you to a covering page; for the sake of others, I've found that the specific form for individuals (rather than companies) is at

 

http://www.hmrc.gov.uk/cnr/aust-indiv2003.pdf.

 

However, I notice that the page you get to from your link talks about "temporary residence" rather than permanent. Do you happen to know if the same applies? And do you know if it also applies to share dividends? (My wife owns a parcel of Diageo shares that she inherited from an aunt, and would like eventually to pass them on to our grandchildren, having taken the income in the meantime. Apparently Diageo doesn't have an Australian share register, so they would have to remain a UK shareholding. It might in fact be simpler to sell them and buy something else to leave eventually to the kids!)

 

I guess it's a case for discussion with a financial adviser/accountant.

 

Mike

 

PS: I believe that any income from an Australian superannuation fund is tax-free. It won't apply to us, but others may like to consider/discuss the situation if they are able to transfer a UK pension pot into an Aussie super fund (which can be a self-managed one, I believe).

Edited March 31, 2012 by MikenSueNW3
PS

[Alan Collett]

UK pensions remain taxable in the UK in the hands of tax residents of Australia who hold temporary residency visas (eg subclass 173 visaholders).

 

Also, remember you can claim an 8% Undeducted Purchase Price deduction for UK State Pensions.

 

UK dividends are taxable in Australia if received by Aus residents who hold permanent visas or are Aus citizens; the notional tax credit that attaches to a UK divi can be claimed as a foreign tax offset.

 

Best regards.

[Les Avalook]

UK dividends are taxable in Australia if received by Aus residents who hold permanent visas or are Aus citizens; the notional tax credit that attaches to a UK divi can be claimed as a foreign tax offset.

 

Best regards.

 

Hi Alan. Once again thanks for the information you give. Regarding dividends, BP paid out on the day(20/09/11) we landed in Oz after leaving the UK on our one way flight, is this the day we start declaring our overseas income or is it from the day we first started working in Oz or even worse from the day we popped over in the 2011 May half-term week to validate our 143 visa?

[Linday]

Very many thanks, Linday. Your link takes you to a covering page; for the sake of others, I've found that the specific form for individuals (rather than companies) is at

 

http://www.hmrc.gov.uk/cnr/aust-indiv2003.pdf.

 

However, I notice that the page you get to from your link talks about "temporary residence" rather than permanent. Do you happen to know if the same applies? And do you know if it also applies to share dividends? (My wife owns a parcel of Diageo shares that she inherited from an aunt, and would like eventually to pass them on to our grandchildren, having taken the income in the meantime. Apparently Diageo doesn't have an Australian share register, so they would have to remain a UK shareholding. It might in fact be simpler to sell them and buy something else to leave eventually to the kids!)

 

I guess it's a case for discussion with a financial adviser/accountant.

 

Mike

 

PS: I believe that any income from an Australian superannuation fund is tax-free. It won't apply to us, but others may like to consider/discuss the situation if they are able to transfer a UK pension pot into an Aussie super fund (which can be a self-managed one, I believe).

 

Mike

 

As Alan says, if you are on a temporary visa, you will still pay your tax in the UK. I have just completed a self-assessment form for 2010-11 so make sure you keep all your records of income received and any tax paid etc. Also make sure you get it in on time before the deadline they give you or they will fine you £100 which happened to me, even though it was their fault as I sent my form to them at the end of October and they sent back my form because of a minor point, posted it on 19th December and it took five weeks to get here, arriving on 29th January and the deadline for getting it back to them was 30th January! I applied to do my return online, and they send you a login code, which according to my brother (who also is in Oz and has to do a UK tax return as he owns property) for some reason gets sent from Malta by surface mail and takes about five weeks to get to Oz. Unfortunately the code is only valid for 30 days and you have to apply for a new one, so not sure how this is supposed to work! I am still waiting for my login code even though I applied for it about 7 weeks ago. I will be submitting my 2011-12 return as soon as possible after 6th April.

[JohnandEirian]

I'm not sure, but I think income from a self-managed super fund pays tax at a reduced 15%.

John & Eirian

[Alan Collett]

Hi Alan. Once again thanks for the information you give. Regarding dividends, BP paid out on the day(20/09/11) we landed in Oz after leaving the UK on our one way flight, is this the day we start declaring our overseas income or is it from the day we first started working in Oz or even worse from the day we popped over in the 2011 May half-term week to validate our 143 visa?

 

The answer to your question is: from the date you became a tax resident of Australia.

 

You are to self assess this; my first reaction is to say you became tax residents on the date you arrived in Australia to live.

 

Best regards.

[Alan Collett]

Mike

 

As Alan says, if you are on a temporary visa, you will still pay your tax in the UK. I have just completed a self-assessment form for 2010-11 so make sure you keep all your records of income received and any tax paid etc. Also make sure you get it in on time before the deadline they give you or they will fine you £100 which happened to me, even though it was their fault as I sent my form to them at the end of October and they sent back my form because of a minor point, posted it on 19th December and it took five weeks to get here, arriving on 29th January and the deadline for getting it back to them was 30th January! I applied to do my return online, and they send you a login code, which according to my brother (who also is in Oz and has to do a UK tax return as he owns property) for some reason gets sent from Malta by surface mail and takes about five weeks to get to Oz. Unfortunately the code is only valid for 30 days and you have to apply for a new one, so not sure how this is supposed to work! I am still waiting for my login code even though I applied for it about 7 weeks ago. I will be submitting my 2011-12 return as soon as possible after 6th April.

 

Added to which my understanding is that you cannot e-lodge a UK tax return via HMRC's e-submission portal when you are not resident in the UK - I have been advised that the HMRC app doesn't allow for the submission of a Residence supplement.

 

Rather, you have to buy suitable UK tax return software - or engage an accountant who can submit the UK tax return for you.

 

Best regards.

[Alan Collett]

I'm not sure, but I think income from a self-managed super fund pays tax at a reduced 15%.

John & Eirian

 

http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00250233.htm&page=29#P848_55830

 

Best regards.

[Linday]

Added to which my understanding is that you cannot e-lodge a UK tax return via HMRC's e-submission portal when you are not resident in the UK - I have been advised that the HMRC app doesn't allow for the submission of a Residence supplement.

 

Rather, you have to buy suitable UK tax return software - or engage an accountant who can submit the UK tax return for you.

 

Best regards.

 

That probably explains it then, although I did keep getting letters from them inviting me to do mytax return online!

[Alan Collett]

That probably explains it then, although I did keep getting letters from them inviting me to do mytax return online!

 

How will/did you lodge your 2011 return, Linday - given that you must lodge it electronically?

 

Best regards.

[Guest janeymc]

Hello

 

New to this website and looking for some advise if possible please. My Hubby, myself and our little boy moved to adelaide with a PR visa in December 2011. My dad and my stepmum are coming out for a holiday in december and have today announced that they are getting marries in September because my dad thinks this may help with their plans to move over here on a retirement visa. I have one brother back in the UK and my stepmum has 2 daughters. can you please let me know if you have any thoughts about them being able to apply for a retirement visa and what the latest guidance is regarding their eligability, ie finance, BOF etc.

 

Any advise is greatly appreciated!!

 

janeymc

[jtct]

http://www.immi.gov.au/media/fact-sheets/31parents.htm

 

this might help

[Linday]

Hello

 

New to this website and looking for some advise if possible please. My Hubby, myself and our little boy moved to adelaide with a PR visa in December 2011. My dad and my stepmum are coming out for a holiday in december and have today announced that they are getting marries in September because my dad thinks this may help with their plans to move over here on a retirement visa. I have one brother back in the UK and my stepmum has 2 daughters. can you please let me know if you have any thoughts about them being able to apply for a retirement visa and what the latest guidance is regarding their eligability, ie finance, BOF etc.

 

Any advise is greatly appreciated!!

 

janeymc

 

I don't think they would be eligible for a parent visa as they would not pass the balance of family test, as they also count stepchildren and they would need to have at least half their children in Australia. A retirement visa might be an option but it is quite expensive I believe:

 

You could start by looking here:

 

http://www.immi.gov.au/visitors/retirement/405/

[Linday]

How will/did you lodge your 2011 return, Linday - given that you must lodge it electronically?

 

Best regards.

 

Hi Alan

I did a paper return for the 2010/11 which was accepted.

[JohnandEirian]

I never thought the day would come when we was happy to receive a request for $75,930, but it has!

Now the final hurdle, I think...... how to get a Bank cheque paid to Perth PVC (we call it Bankers draft here) from our Australian bank account, when we're here in the UK enjoying the sunshine.

Any ideas?

John & Eirian

[JohnandEirian]

I never thought the day would come when we was happy to receive a request for $75,930, but it has!

Now the final hurdle, I think...... how to get a Bank cheque paid to Perth PVC (we call it Bankers draft here) from our Australian bank account, when we're here in the UK enjoying the sunshine.

Any ideas?

John & Eirian

Grammar!!

[vava]

Morning all,

We are ready to apply for the permanent 143 after being granted a temp 173 last November. I am about to send our completed form 47PT to my daughter along with a blank sponsorship form 40 for her to fill in. It advises in the notes for form 47PT that if circumstances remain the same, proof documents are not required. Does anyone know if that also applies to my daughter? DIAC had all the certified copies of everything in 2010 when we applied and nothing has changed.

It seems silly to go to all the bother and expense of getting more certified copies if it's not necessary. I know Linday recently did this application so perhaps if you read this Linday you might be able to help.

Thanks in advance....................Val x

[hitchers]

Morning all,

We are ready to apply for the permanent 143 after being granted a temp 173 last November. I am about to send our completed form 47PT to my daughter along with a blank sponsorship form 40 for her to fill in. It advises in the notes for form 47PT that if circumstances remain the same, proof documents are not required. Does anyone know if that also applies to my daughter? DIAC had all the certified copies of everything in 2010 when we applied and nothing has changed.

It seems silly to go to all the bother and expense of getting more certified copies if it's not necessary. I know Linday recently did this application so perhaps if you read this Linday you might be able to help.

Thanks in advance....................Val x

 

 

I am currently going from a 103 to a 143 and the only docs required for the 143 and 40 are if any circumstances have changed. For my 143 the circumstances have not changed, my daughter has moved and now has a job, so certified copies in respect of this are being sent but not for things that have not changed

Dave

[JohnandEirian]

http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00250233.htm&page=29#P848_55830

 

Best regards.

Hi Alan,

Does this mean that income from Super funds are free of tax in Australia?

John & Eirian

[Guest Power91]

my sister is a permanent residence of australia.. i live in australia as a fulltime student

about a year ago my sister applied for my parents permanent residency as a Contributory Parent Visa permanent 173

now immigration has asked for my parents medicals and Police clearance

they have also asked my medicals and police clearence

The question is why are they asking my medical and police check when i wasnt even included in application??

does it mean im getting permanent too because of im dependent on my parents for my fee etc???

and how long more does it take once you have given medicals and police checkss already been 15 months.

 

Answers in details would be highly appreciated

thanks guys !!!

[Alan Collett]

Hi Alan,

Does this mean that income from Super funds are free of tax in Australia?

John & Eirian

 

It all depends!

 

http://www.superguide.com.au/

 

Have a look at this website - and feel able to contact me by way of an email (click on my name to the left of this post) if you would like to discuss with my financial planning colleague.

 

Best regards.

[Freesia]

my sister is a permanent residence of australia.. i live in australia as a fulltime student

about a year ago my sister applied for my parents permanent residency as a Contributory Parent Visa permanent 173

now immigration has asked for my parents medicals and Police clearance

they have also asked my medicals and police clearence

The question is why are they asking my medical and police check when i wasnt even included in application??

does it mean im getting permanent too because of im dependent on my parents for my fee etc???

and how long more does it take once you have given medicals and police checkss already been 15 months.

 

Answers in details would be highly appreciated

thanks guys !!!

 

it sounds like you haven't applied for a Permanent Visa ( or have your parents applied including you as a dependent?) they won't be granting you a visa if you haven't applied for one.....:nah: but they will be aware that you might well apply in the future- given that a large part of your family will have PR..that's why you have to do your bit too ..