scarlett Posted August 24, 2011 Share Posted August 24, 2011 We have our visa and are off in just 4 months. Most things are sorted but I can't get my head around all the financial stuff I should probably be organising. A company I met at an Expo ring me regularly and to be honest, he's got me really worried about things I hadn't even considered, such as paying tax in Aus on our property we are going to be renting in the UK. Anyway, thought I'd post my worries and see if anyone can help please :wubclub: Firstly, what are the finacial things I should be considering before we move to the other side of the world, these are what spring to mind: Mortgage, Life Insurances, Private Pensions, ISAs, Child Trust Fund, Will, Student loan. Secondly can anybody help me with these issues: *We are renting our house when we go, mortgage company are fine with this for two years, then we would have Can we still pay into a UK bank account if we aren't residing here? Accountant says we won't pay tax in the UK as it's within our allowance, will we have to pay tax in Aus? *As we are renting our house I assume we keep our life insurances in the UK? Do we then need additional life insurance in Aus? *We have private pensions but have very little in them and they're froze, we wasn't going to bother transferring these, will we incur any charges in Aus? *If we leave savings in the UK, will we incur charges, either now in the future? *Can we transfer a Child Trust Fund account to Aus? * Is it wise to make a will before we go? Any help at all is greatly appreciated x Link to comment Share on other sites More sharing options...
Cal2 Posted August 25, 2011 Share Posted August 25, 2011 no idea, sorry, but will bump Cal Link to comment Share on other sites More sharing options...
Guest stevenw8971 Posted August 25, 2011 Share Posted August 25, 2011 Hi Scarlett, paying Oz tax on UK Assets - We were told if your assets are not transfered to oz within 6 months of getting there you would have to pay tax on any growth in value, so if your house to worth £10 now and £12 in 8 months time you'd have to pay tax on the £2, but only when you sell, same with ISA, savings etc. Not sure about rental income. I don't see why you have to keep your UK life insurance, but it might be in your mortgage contract that you have to keep your building insurance going. Contact your mortgage company. Again with the child trust fund, contact the provider. Hope this helps Link to comment Share on other sites More sharing options...
LYNDAMUMFORD Posted August 25, 2011 Share Posted August 25, 2011 Hi Scarlett I can help on a few points, has been a crazy few weeks for us & we fly to melbourne this Sat. Child Trust Fund = cannot be cashed in or transferred, can only be got at once the child had turned 18 Life Insurance = have kept ours as I was told that the life is insured irrespective of where we reside. Will keep in place for now until we have settled in Oz Pensions = Currently being looked into with a view to transfer (dependent on costs) from UK to Oz. Used tax division of Go Matilda, let me know if you would like contact details Will = have kept a hard copy on us & left one with solicitor in UK - Definately worth speaking to your solicitor as you have a property in the UK still Hope that helps a little x Link to comment Share on other sites More sharing options...
scarlett Posted August 26, 2011 Author Share Posted August 26, 2011 Thanks for all the help. :rolleyes: Lynda, we used Go Matilda for Visa and they have offered Tax advice which we are now considering. Would you mind sending me a PM with your thoughts about the service and if it's not prying, a rough idea of what kind of cost to expect please. Thanks x Link to comment Share on other sites More sharing options...
Alan Collett Posted August 26, 2011 Share Posted August 26, 2011 Hi Scarlett, paying Oz tax on UK Assets - We were told if your assets are not transfered to oz within 6 months of getting there you would have to pay tax on any growth in value, so if your house to worth £10 now and £12 in 8 months time you'd have to pay tax on the £2, but only when you sell, same with ISA, savings etc. Not sure about rental income. <snip> Hope this helps Sorry - that's not correct. The 6 months window applies to the now defunct Foreign Investment Fund Rules (abolished frm end-June 2010). UK source ncome is taxable from the date of the commencement of tax residency in Australia, assuming (broadly) that you are not the holder of a temporary residency visa. Best regards. Link to comment Share on other sites More sharing options...
Guest stevenw8971 Posted August 26, 2011 Share Posted August 26, 2011 Sorry - that's not correct. The 6 months window applies to the now defunct Foreign Investment Fund Rules (abolished frm end-June 2010). UK source ncome is taxable from the date of the commencement of tax residency in Australia, assuming (broadly) that you are not the holder of a temporary residency visa. Best regards. Cheers for updating me Link to comment Share on other sites More sharing options...
Guest shusselmann Posted August 27, 2011 Share Posted August 27, 2011 We moved to Aus 19 mths ago and have property rented out in the UK. When we completed our first Aus tax return we declared full details of our UK property – this included perceived earnings from rent and money we’d paid out on maintenance (so keep receipts if you’re doing any last minute DIY at the moment). When we completed our UK tax return we paid an accountant. I tried to lodge it myself online but learnt that if you’re not residing in the UK you can’t do it online. We took the opportunity to update our wills before we left the UK. We used a kit from WHSmith’s and gave copies to a few family members. Child Trust Fund – make sure they have latest contact details for you then nothing to do until the child is 16 (when they can manage the fund themselves, if they want to), then 18 (when they can access the funds). Something else we did was give my parents Power of Attorney, you can do this fairly easily through a Solicitor. If we ever wanted or needed to sell our property and couldn’t get to the UK ourselves to sign the paperwork, they’d be able to do it for us. We thought it was a good backup to have. All the best, Sarah Link to comment Share on other sites More sharing options...
Guest stevenw8971 Posted August 31, 2011 Share Posted August 31, 2011 Hi Scarlett, i came across this site http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm#5, and remembered you'd asked about tax on rental income. Have a look Steven Link to comment Share on other sites More sharing options...
Guest hobbis Posted September 1, 2011 Share Posted September 1, 2011 Scarlett - its not easy and so many decisions to make. Also not a good time to transfer funds etc. as the exchange rate is so bad compared to a few years ago. Good luck! This is a great website - Link to comment Share on other sites More sharing options...
Guest webster Posted September 6, 2011 Share Posted September 6, 2011 We have our visa and are off in just 4 months. Most things are sorted but I can't get my head around all the financial stuff I should probably be organising. A company I met at an Expo ring me regularly and to be honest, he's got me really worried about things I hadn't even considered, such as paying tax in Aus on our property we are going to be renting in the UK. Anyway, thought I'd post my worries and see if anyone can help please :wubclub: Firstly, what are the finacial things I should be considering before we move to the other side of the world, these are what spring to mind: Mortgage, Life Insurances, Private Pensions, ISAs, Child Trust Fund, Will, Student loan. Secondly can anybody help me with these issues: *We are renting our house when we go, mortgage company are fine with this for two years, then we would have Can we still pay into a UK bank account if we aren't residing here? Accountant says we won't pay tax in the UK as it's within our allowance, will we have to pay tax in Aus? *As we are renting our house I assume we keep our life insurances in the UK? Do we then need additional life insurance in Aus? *We have private pensions but have very little in them and they're froze, we wasn't going to bother transferring these, will we incur any charges in Aus? *If we leave savings in the UK, will we incur charges, either now in the future? *Can we transfer a Child Trust Fund account to Aus? * Is it wise to make a will before we go? Any help at all is greatly appreciated x 1. You can pay your rental income into a UK bank account. It will not be taxed twice, but you probably need to see an accountant to make sure you do not pay double tax. This is when someone can advocate with the ato and hmrc which country you are a resident of for tax purposes. 2. Life insurance should be good anywhere but check with your particular insurer re any clauses about moving overseas. 3. You can leave savings in the UK, but what happens with them depends on what form you leave them in and how much income is derived from this. Another point to seek advice on as you want to maximise the return on this money but also keep it in a fairly low risk account/portfolio so it is all there and hopefully more when you return! Link to comment Share on other sites More sharing options...
Alan Collett Posted September 6, 2011 Share Posted September 6, 2011 1. You can pay your rental income into a UK bank account. It will not be taxed twice, but you probably need to see an accountant to make sure you do not pay double tax. This is when someone can advocate with the ato and hmrc which country you are a resident of for tax purposes. <snip> The OP has advised net rental income is less than the UK personal allowance; entitlement to the UK personal allowance remains in place whether or not resident, so long as the OP is a citizen of the UK, EU (plus some others). Net rental income (ignoring the UK personal allowance) is then taxable in Australia, so long as the taxpayer is not the holder of a temporary residency visa. Best regards. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.