heathgravett

Hi All

I hold investment property in the UK. I'm not going to sell them when I migrate. If we decide to stay in Oz after say 2 years of experience then we will probably sell them.

I asked this question on Go Matilda a while ago and was told that the assets when we arrive in Oz have a value. If we sell up and bring that money over at a later date they will look at the sales value less the value when we became tax resident and calculate a gain. If house prices remain static in the UK that means we will sell at the original valuation and have no tax to pay. Is this correct?

Do I need to have a professional valuation of all my properties just before we migrate to establish the value at migration?

Any help here would be greatly appreciated.

Worzel, if you read this, any thoughts?

Cheers

Heath

worzel

I am no expert in UK tax never mind Aus tax but the bit about movements in value from when you become resident rings a bell. I think that even if the price stays the same in GBP you can still make a gain if the FX rate moves. A mate back in the UK sent me an email last week asking me a very similar question on behalf of a client so I searched around the ATO website but couldn't find anything immediately.

Who answered your question on Go Matilda? If it was Alan Collett then it will be right (Go Matilda is his Co, he is an accountant by trade, been here years and has a sister co dealing in such tax affairs).

JAJ

As I understand it, you normally have to do Australian capital gains tax computations based on Australian dollar values.

worzel

Of course. Even if the GBP value doesn't move but the FX rate does then the AUD value will change and hence a gain or loss can arise. Which is what I was getting at. Or are you making a different point?

thebears

They are just trying to be funny mate. I understood quite clearly your valid point the first time

heathgravett

Hi Worzel

Yes it was Alan Collett (i'm using Go Matilda as my migration agent). He was very cagey with his response and made it very unclear - trying to get some fee advice no doubt, then another forum user scuppered his plans and posted a more accurate view but again didn't give me the complete picture so I thought I'd ask on here. As I asked in the thread, if tax is calculated from the value when you become tax resident to the time you actually sell, then surely there is a need to value the properties at the time you become tax resident, but I bet there's no-one that will make sure you do. In that case, 3 years down the track let's say, how is the value at tax residency obtained? Would it not be better for me to produce an independant valuation gained at the start to prove my values? Would I need 3 valuations for true independance? Who in The Aus Tax office should advise me, etc?

Clearly as mentioned calcs are in AUS$ so FX plays a part too.

I'm thinking I might need some detailed tax advice before I leave as I will also be receiving profits (rental income less mortgage) from these properties. I'm planning for my Ltd company to charge management fees to me personally thus bringing my personal profits to almost nil and offsetting the profits then moved to the Ltd co against previous losses in that co, then paying back loans or paying dividends which should have a tax credit attached!! Phew!! Why did I become an accountant eh??

Not sure what Alan Collett charges but it might be worth it if I've got something wrong - waste of money if my thoughts are correct.

Has that got the grey matter whirring anyone??

Heath

Alan Collett

Heath,

If you want advice on which you can rely you may have to pay for it ...

Best regards.

heathgravett

Hi there Alan.

I have no doubt that I will end up paying for some advice as it's simply not worth the risk when I could have so much money at stake.

How do you structure your fees and how do we communicate - by email, or do we meet up at some point to review all the documents etc?

Best regards

Heath.

PS Any thoughts as to why the priority offshore is moving soooo slowly at present?

Alan Collett

Hello again Heath.

If I may I'll send you an email with details of how I might advise in a tax planning context.

Best regards.

JAJ

As I understand it, under a self-assessment system you do the calculations or make the necessary declarations yourself (or pay expert to do it for you). Should the ATO dispute your valuation when you became tax resident, an independent valuation obtained at the time should be useful.

Michael John Davies

Dear All
Can anyone tell me if they know anything about a company called Montfort International Plc based in Surrey UK.They are global financial planners and wanted £1295 + vat off me up front before making any recommendations form
y migration to Oz on a 457 visa.

Regards

Mike

heathgravett

Hi Michael

Whatever you do don't give any money upfront. I don't know what you are asking - VISA advice, tax advice etc but I now have my VISA granted and Go Matilda never asked for fees upfront.

PM me if you like about what you want to know and why Montfort are asking for that sort of money and maybe I can help start you on the right track.

Heath

thebears

Depending on your visa

JAJ

Do tell us more ...

thebears

Read up on your most favourite of temporary NZ visa's

No capital gains from foreign held investments are now included in Australian assessments.