Originally Posted by louie

I think you are missing......

If this law is enacted, she would have to pay £2,000 in the UK as she would have no personal allowance if she has emigrated to Australia. She could not offset it against her non-existent Australian liability. So this would cost her £2,000....

Originally Posted by Grayling

There is a double taxation agreement between the UK and Australia therefore you only have to pay tax in your country of residence.

All our income is UK sourced and we pay tax on the lot in Australia. We do not get any UK tax allowance as we are not UK tax payers therefore it will make no difference to us as pensioners living in Australia or to others who are Australian tax payers unless their income is from owning a UK property and renting it out (as I understand it).

Originally Posted by Bermudashorts

The double taxation agreement does not work like that. It is much more detailed, it actually considers different types of income and then the rule as to where tax is paid is specified for each different type of income. Sometimes it is where you are resident and sometimes it is where the income is sourced.

Originally Posted by Grayling

All our income is UK sourced and we pay tax on the lot in Australia. We do not get any UK tax allowance as we are not UK tax payers therefore it will make no difference to us..(as I understand it).

Originally Posted by blackcab

You are up to the 5th April 2015 entitled to claim your personal tax free alliwance in the UK. While living here in Oz. Depending if your global income is above roughly $20450 will be a factor as to whether you pay any tax here in Oz.

Originally Posted by Grayling

No we can not.....we are Autralian tax payers therefore have to pay tax on all our worldwide income to the ATO.

We can not get a UK tax allowance if we are not UK tax payers

Originally Posted by blackcab

If your source of income is derived from the UK you can. Google it. Obviously there must be tax paid in the UK to claim the allowance in the first place lol.

Originally Posted by Grayling

There is no point.....I still have to pay tax on all my income in Australia anyway.....I have opted out of the UK tax system.

You can not claim the UK allowance and then not declare that part of your income.

Originally Posted by blackcab

If your income was below this figure there would be a point in claiming your allowance.

Originally Posted by Grayling

What would be the point?

You would still have to pay tax in Australia on your worldwide income.

How can you claim an allowance if you do not pay any tax in the UK?

Originally Posted by Wol

You are correct. Pension income is treated differently from, say, rental income (which is what this change is effectively about.)

Originally Posted by Wol

You are correct. Pension income is treated differently from, say, rental income (which is what this change is effectively about.)

Originally Posted by Buzzy--Bee

OK, can someone help me understand this. Is income from UK rental properties when the owners are permanent residents and tax resident in Australia exempt from Australian tax somehow at the moment?

BB

Originally Posted by Bermudashorts

No, absolutely not. But for rental income the UK taxman gets first bite of the cherry.

Originally Posted by Grayling

We get all of our income from the UK and pay all our tax in Australia.