Jamey

Hi guys,

Great forum!

Could you please help? I am looking to move back and become a resident of the UK after 7 years in living here in Perth. I will buy a house in the UK but the problem may be that my wife and two children will remain in Perth for schooling and university studies. They will continue to stay in the same house that we have owned since coming to Perth. We plan to meet up for holidays and I would visit Australia a couple of times a year. We also have an investment property. I work overseas for at least seven months of the year so I am hardly in Australia in the first place.

How will the Australian tax office look at this situation???? Has anyone had the pleasure of this fragmented existence!!!!!!!!!!

Be gentle with me.....

Thanks in advance.

Jamey

ann m

Where do you file your taxes at the moment ?

Where are you for most of the year ?

Jamey

I presently file my tax returns in Australia and can spend up to six/seven months working in different countries, maybe up to four or five depending on the length of the contracts.

OzSheila

I assume you and your wife are not separating? If not then based on my old Australian tax experience I would say that the view of the ATO would be that you remain a tax resident of Australia. My FIL did a similar thing some years ago and I know he was still assessed as a tax resident, much to his annoyance. Suggest getting professional advice and perhaps a tax ruling from the ATO.

HTH

moneypenny20

Those six/seven months in different countries, are they through an Australian company or are you self employed, in which case what country is your business registered in? Might have some bearing.

Jamey

Hi Ozshelia,

Thanks for the info.

My wife and I are staying together!!! We are considering applying for a private tax ruling as this appears to be a very grey area and are also talking to accountants ($$$$$$$ - I should have been an accountant ). From what I understand, both my wife and I can have separate/individual residences. I fit all the criteria to become a UK resident and will complete a UK Tax return.

How often did your FIL return to Australia and did he complete a UK tax return??

Thanks

Jamey

Jamey

Hi Moneypenny20

I am employed by a Norwegian company.

Jamey

ozhappy981

Definitely apply for a private ruling! The general rule would be that having a wife and two kids in Australia makes you "resident". Hence a good idea to apply for a private ruling (then the ATO can take into account ALL your personal circumstances and come up with the answer.)

If they label you "resident", try to negotiate with the UK taxman that they do not also regard you as "resident" (if they both insist that you are "resident", your tax returns will become a royal pain for you).

If the ATO label you "non-resident", you will pay tax at 29% on all of your Australian income (e.g. your share of the Oz investment property). To avoid that you may want to consider putting the Australian investment property solely into your wife's name.

Jamey

Hi Ozhappy981,

Thank you for your input.

We will go the "private ruling" route to get a definitive answer on this issue and will let you know how we get on. I am sure there are a few people in our situation.

Thanks once again to all those who have taken time to reply

Jamey

JimHennington

I assume you've checked out these tools?

http://www.ato.gov.au/individuals/co...tent/64131.htm

http://calculators.ato.gov.au/script...dent.XR4&go=ok

Let me know if they are useful.

Jim

JAJ

What is your visa/immigration status? For example, Australian citizen, Australian permanent resident, temporary visa holder, etc?