UK Tax Advice in Australia
Tax advice is available in Australia which allows returning expatriates, and UK migrants, to have UK tax returns prepared locally. It is also usually advisable to obtain some tax advice prior to arrival in the UK. Depending on individual circumstances, proper tax planning can make a very considerable difference in the amount of tax paid in the UK.
The UK government announced on March 7, 2024 that it would scrap the non-domiciled tax status - with the changes to take effect from April 6, 2025. This largely impacts long terms Australian expats in the UK but it does make assignment durations of more than 4 years less attractive - see our summary of the tax changes for "non-doms".
UK Tax Returns and Advice in Australia
Both Australian expatriates and British migrants who retain property in the UK which is rented out, or who maintain business interests and UK sourced income, will need to continue submitting UK tax returns. This can be arranged in Australia through qualified tax advisors who can prepare UK returns, and also associated Australian returns, if required.
Apart from the preparation of UK personal tax returns, the following advice and services are available:
- Advice in connection with the tax-efficient realisation and structuring of investments in the UK for Australian residents and migrants.
- Inheritance Tax planning – especially where the UK and Australian tax systems interact.
- Advice in connection with moving businesses, whether incorporated or unincorporated, between Australia and the UK in a tax-efficient way.
- Individuals returning to the UK on a permanent basis in relation to tax planning and the treatment of superannuation income stream and lump sum payments.
- Specific advice in relation to capital gains liabilities attaching to the sale of property and businesses in the UK - and note in this regard that very strict protocols now exist in relation to the prompt reporting and payment of capital gains made in relation to real property.
- Advice with respect to international remote working - individuals working for Australian firms while resident in the UK and vice versa
Advisors will provide a fixed fee quote for the preparation of returns and also in relation to any advice or services provided.
Tax Advice in relation to UK Assignments
If you are an employee being assigned from Australia (or any other location) to work in the UK on a temporary basis (i.e. no longer than 2 years), you may be able to claim certain exemptions/deductions in the UK, including:-
- Home to work travel
- Accommodation & utility costs
- Daily subsistence costs
In order to qualify for this very favourable tax treatment it is important that your contract is structured properly prior to taking up your overseas posting. Access to tax advisors who specialise in working with both employees and employers is available to ensure that maximum allowable savings are achieved both in relation to income tax and social security (National Insurance) for both the employee and employer.
During a UK assignment it may also be possible to exclude your earnings relating to overseas workdays (days you spend working anywhere outside of the UK) from UK tax by careful planning, prior to arriving in the UK. This can be achieved by having part or all of your salary paid into an overseas bank account. Note that if you are a contractor the above option will not apply to you. Depending on your circumstances it may then be worthwhile considering changing your status to that of an ‘employee’, if this is an option available to you.
Tax Advice in relation to Retirement in the UK
We very regularly receive inquiries from individuals and families looking to retire in the UK and this can give rise to substantial issues with respect to taxation. For example, a UK tax resident may expect that Australian account based superannuation income streams will be fully taxable in the UK, which is not attractive, and it can be more tax effective - if there is a clear intention to remain permanently in the UK - to withdraw any superannuation funds entirely and invest them in the UK. However, there are a number of potential issues around lump sum withdrawals and there may be inheritance tax implications in some situations - with the result that prior, specific tax advice is absolutely recommended.
If you would like to arrange professional advice please complete the Inquiry form below providing details and you will be contacted promptly.
