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Intercontinental Taxation

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Old Aug 9th 2008 | 11:46 pm
  #1  
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Default Intercontinental Taxation

Hi everyone

Validating visas at the end of next week. Would be nice to move out quickly, but our house has a minor subsidence problem. Monitoring has taken two years so far, but there are complications regarding remedial works. May be sorted quickly, or it may drag on for another two years.

I can probably earn more in Perth than I can here in the UK, so I'm wondering what the tax position would be if I worked in WA and Ann stayed behind until house is sold, with me transferring money to the UK to cover mortgage etc?

Any clues would be much appreciated!!

Thanks
Karl
 
Old Aug 10th 2008 | 12:03 am
  #2  
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Default Re: Intercontinental Taxation

Originally Posted by Karl & Ann
Hi everyone

Validating visas at the end of next week. Would be nice to move out quickly, but our house has a minor subsidence problem. Monitoring has taken two years so far, but there are complications regarding remedial works. May be sorted quickly, or it may drag on for another two years.

I can probably earn more in Perth than I can here in the UK, so I'm wondering what the tax position would be if I worked in WA and Ann stayed behind until house is sold, with me transferring money to the UK to cover mortgage etc?

Any clues would be much appreciated!!

Thanks
Karl
Get an accountant with experience in both countries... Alan Collett springs to mind...
 
Old Aug 10th 2008 | 12:15 am
  #3  
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Default Re: Intercontinental Taxation

Originally Posted by Karl & Ann
Hi everyone

Validating visas at the end of next week. Would be nice to move out quickly, but our house has a minor subsidence problem. Monitoring has taken two years so far, but there are complications regarding remedial works. May be sorted quickly, or it may drag on for another two years.

I can probably earn more in Perth than I can here in the UK, so I'm wondering what the tax position would be if I worked in WA and Ann stayed behind until house is sold, with me transferring money to the UK to cover mortgage etc?

Any clues would be much appreciated!!

Thanks
Karl
You pay tax dependent on where you reside. So you would pay Aussie tax once you move here.
 
Old Aug 10th 2008 | 12:21 am
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Default Re: Intercontinental Taxation

Originally Posted by worzel
You pay tax dependent on where you reside. So you would pay Aussie tax once you move here.
It's not as simple as that though is it... there's dual taxation agreements between Aus and the UK... best to get someone who's used to buggering about with both jurisdictions to have a look I reckon...
 
Old Aug 10th 2008 | 12:29 am
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Default Re: Intercontinental Taxation

Originally Posted by DrWho
It's not as simple as that though is it... there's dual taxation agreements between Aus and the UK... best to get someone who's used to buggering about with both jurisdictions to have a look I reckon...
If the OP is planning on returning to the UK it would be more complicated as you say as tax paid in Aus could be offset against UK tax etc.

But all the stuff about mortgages and moving at a different time to the wife are irrelevant so far as I can tell. Personal tax is just that - personal. Like most of us, we lived in the UK and paid UK tax; then we moved here and now pay Aus tax.
 
Old Aug 10th 2008 | 12:37 am
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Default Re: Intercontinental Taxation

Originally Posted by worzel
...Personal tax is just that - personal. Like most of us, we lived in the UK and paid UK tax; then we moved here and now pay Aus tax.
That's what I used to think... been here over 2 years now and had a letter from the UK tax man a month ago suggesting I might owe him some money... despite having an accountant in the UK to sort all that stuff out...
 
Old Aug 10th 2008 | 12:51 am
  #7  
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Default Re: Intercontinental Taxation

Originally Posted by DrWho
That's what I used to think... been here over 2 years now and had a letter from the UK tax man a month ago suggesting I might owe him some money... despite having an accountant in the UK to sort all that stuff out...
Hmmm, as an accountant myself I would be interested to know on what basis they might think that.
 
Old Aug 10th 2008 | 1:07 am
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Default Re: Intercontinental Taxation

Originally Posted by worzel
If the OP is planning on returning to the UK it would be more complicated as you say as tax paid in Aus could be offset against UK tax etc.

But all the stuff about mortgages and moving at a different time to the wife are irrelevant so far as I can tell. Personal tax is just that - personal. Like most of us, we lived in the UK and paid UK tax; then we moved here and now pay Aus tax.
Thanks for the replies. Have I opened a can of worms?

I just want to make sure that, once I've paid tax on earnings in WA, I won't then have to pay any UK tax on any money I might transfer to my wife back in the UK.

Cheers
Karl

Last edited by Karl & Ann; Aug 10th 2008 at 1:09 am. Reason: Missed a bit
 
Old Aug 10th 2008 | 1:26 pm
  #9  
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Default Re: Intercontinental Taxation

Originally Posted by Karl & Ann
Thanks for the replies. Have I opened a can of worms?

I just want to make sure that, once I've paid tax on earnings in WA, I won't then have to pay any UK tax on any money I might transfer to my wife back in the UK.

Cheers
Karl
You won't have to pay it twice. Worst case is you pay one end at a higher rate than the other.
 

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