Making huge wadge- HELP
Aug 23rd 2002, 2:09 pm
#1
BE Enthusiast
Thread Starter
Joined: Aug 2002
Location: Mansion in Padbury
Posts: 804
Making huge wadge- HELP
Dear All
2 questions:
1. We have a financial advisor linked to our agents who says that all emigrants are entitled to off shore banking ie high interets Swiss Tony bank accounts etc. This relies upon severing all ties with UK e.g. house, gym memberships, banks etc. Has anyone taken up on this? Is it all its cracked up to be or is it better to put all your money into a house (as someone says on another site that the mortgages are huge).
2. Is there money to made in buying a smaller second property and renting it out? Anyone got any more ideas for making some money (by investment) in Perth?
I know i am being greedy but would really like a few years out the 9 to 5 to have another bambino and dont want to starve in the meantime!
2 questions:
1. We have a financial advisor linked to our agents who says that all emigrants are entitled to off shore banking ie high interets Swiss Tony bank accounts etc. This relies upon severing all ties with UK e.g. house, gym memberships, banks etc. Has anyone taken up on this? Is it all its cracked up to be or is it better to put all your money into a house (as someone says on another site that the mortgages are huge).
2. Is there money to made in buying a smaller second property and renting it out? Anyone got any more ideas for making some money (by investment) in Perth?
I know i am being greedy but would really like a few years out the 9 to 5 to have another bambino and dont want to starve in the meantime!
Aug 23rd 2002, 2:28 pm
#2
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Re: Making huge wadge- HELP
Hi Nicky.
Anyone is entitled to offshore banking. The question that normally arises though is whether the interest income arising is taxable.
Presumably you are heading for Australia? If so, offshore banking doesn't help you, as once you are tax resident in Australia you are taxed on your worldwide income and capital gains, even if you don't take the interest into Australia.
What the financial "advisor" is suggesting almost certainly refers to changing your UK-domiciled status to an overseas domicile of choice. This is fine as a strategy if you are resident for tax purposes in the UK (albeit that a change to a non-UK domicile is difficult to agree with the UK Inland Revenue - perhaps unsurprisingly), but as noted above it definitely doesn't work once you have moved to Australia: Australia doesn't tax non-Aussie domiciled individuals in the same way as the UK taxes non-UK doms.
As to renting out property in WA, I'll leave others to comment, save only to say that it seems that these days investing in real estate seems to be heavily reliant on capital appreciation and not on deriving surplus rental income - which in turn can mean problems if you find yourself heavily mortgaged with a void period (ie without tenants).
Hope this helps.
Anyone is entitled to offshore banking. The question that normally arises though is whether the interest income arising is taxable.
Presumably you are heading for Australia? If so, offshore banking doesn't help you, as once you are tax resident in Australia you are taxed on your worldwide income and capital gains, even if you don't take the interest into Australia.
What the financial "advisor" is suggesting almost certainly refers to changing your UK-domiciled status to an overseas domicile of choice. This is fine as a strategy if you are resident for tax purposes in the UK (albeit that a change to a non-UK domicile is difficult to agree with the UK Inland Revenue - perhaps unsurprisingly), but as noted above it definitely doesn't work once you have moved to Australia: Australia doesn't tax non-Aussie domiciled individuals in the same way as the UK taxes non-UK doms.
As to renting out property in WA, I'll leave others to comment, save only to say that it seems that these days investing in real estate seems to be heavily reliant on capital appreciation and not on deriving surplus rental income - which in turn can mean problems if you find yourself heavily mortgaged with a void period (ie without tenants).
Hope this helps.
Originally posted by NickyTurner:
Dear All
2 questions:
1. We have a financial advisor linked to our agents who says that all emigrants are entitled to off shore banking ie high interets Swiss Tony bank accounts etc. This relies upon severing all ties with UK e.g. house, gym memberships, banks etc. Has anyone taken up on this? Is it all its cracked up to be or is it better to put all your money into a house (as someone says on another site that the mortgages are huge).
2. Is there money to made in buying a smaller second property and renting it out? Anyone got any more ideas for making some money (by investment) in Perth?
I know i am being greedy but would really like a few years out the 9 to 5 to have another bambino and dont want to starve in the meantime!
Dear All
2 questions:
1. We have a financial advisor linked to our agents who says that all emigrants are entitled to off shore banking ie high interets Swiss Tony bank accounts etc. This relies upon severing all ties with UK e.g. house, gym memberships, banks etc. Has anyone taken up on this? Is it all its cracked up to be or is it better to put all your money into a house (as someone says on another site that the mortgages are huge).
2. Is there money to made in buying a smaller second property and renting it out? Anyone got any more ideas for making some money (by investment) in Perth?
I know i am being greedy but would really like a few years out the 9 to 5 to have another bambino and dont want to starve in the meantime!
Aug 23rd 2002, 9:35 pm
#3
Guest
Posts: n/a
Re: Making huge wadge- HELP
Alan I would be suspicious of any financial advisor who suggests a strategy like that
without pausing for one moment to think what the consequences in the other
jurisdiction might be.
Being non-UK domiciled is only of benefit if you're UK resident, and as domicile is
very difficult to change, it's impossible for someone to shed UK domicile while
remaining a UK resident.
As for the second part of his strategy, I think anyone going to Australia would be
well advised to steer clear of 'get rich quick' schemes. In particular, no-one
should commit themself to a big investment until after spending some time in
Australia, overcoming the shock of the move, and getting to know the country better.
New migrants are often sitting ducks for financial scams and cons, which are as
prevalent in Australia as anywhere (perhaps even more so).
Jeremy
>On Fri, 23 Aug 2002 14:28:29 +0000, Alan Collett <[email protected]> wrote:
>Hi Nicky.
>Anyone is entitled to offshore banking. The question that normally arises though is
>whether the interest income arising is taxable.
>Presumably you are heading for Australia? If so, offshore banking doesn't help you,
>as once you are tax resident in Australia you are taxed on your worldwide income and
>capital gains, even if you don't take the interest into Australia.
>What the financial "advisor" is suggesting almost certainly refers to changing your
>UK-domiciled status to an overseas domicile of choice. This is fine as a strategy if
>you are resident for tax purposes in the UK (albeit that a change to a non-UK
>domicile is difficult to agree with the UK Inland Revenue - perhaps unsurprisingly),
>but as noted above it definitely doesn't work once you have moved to Australia:
>Australia doesn't tax non-Aussie domiciled individuals in the same way as the UK
>taxes non-UK doms.
>As to renting out property in WA, I'll leave others to comment, save only to say
>that it seems that these days investing in real estate seems to be heavily reliant
>on capital appreciation and not on deriving surplus rental income - which in turn
>can mean problems if you find yourself heavily mortgaged with a void period (ie
>without tenants).
>Hope this helps.
>Originally posted by NickyTurner:
>> Dear All
>> 2 questions:
>> 1. We have a financial advisor linked to our agents who says that all emigrants
>> are entitled to off shore banking ie high interets Swiss Tony bank accounts
>> etc. This relies upon severing all ties with UK
>> e.g. house, gym memberships, banks etc. Has anyone taken up on this? Is it all
>> its cracked up to be or is it better to put all your money into a house
>> (as someone says on another site that the mortgages are huge).
>> 2. Is there money to made in buying a smaller second property and renting it out?
>> Anyone got any more ideas for making some money (by investment) in Perth?
>I know i am being greedy but would really like a few years out the 9 to 5 to have
>another bambino and dont want to starve in the meantime!
>--
>Alan Collett of Go Matilda,
>http://www.gomatilda.com
>Posted via http://britishexpats.com
without pausing for one moment to think what the consequences in the other
jurisdiction might be.
Being non-UK domiciled is only of benefit if you're UK resident, and as domicile is
very difficult to change, it's impossible for someone to shed UK domicile while
remaining a UK resident.
As for the second part of his strategy, I think anyone going to Australia would be
well advised to steer clear of 'get rich quick' schemes. In particular, no-one
should commit themself to a big investment until after spending some time in
Australia, overcoming the shock of the move, and getting to know the country better.
New migrants are often sitting ducks for financial scams and cons, which are as
prevalent in Australia as anywhere (perhaps even more so).
Jeremy
>On Fri, 23 Aug 2002 14:28:29 +0000, Alan Collett <[email protected]> wrote:
>Hi Nicky.
>Anyone is entitled to offshore banking. The question that normally arises though is
>whether the interest income arising is taxable.
>Presumably you are heading for Australia? If so, offshore banking doesn't help you,
>as once you are tax resident in Australia you are taxed on your worldwide income and
>capital gains, even if you don't take the interest into Australia.
>What the financial "advisor" is suggesting almost certainly refers to changing your
>UK-domiciled status to an overseas domicile of choice. This is fine as a strategy if
>you are resident for tax purposes in the UK (albeit that a change to a non-UK
>domicile is difficult to agree with the UK Inland Revenue - perhaps unsurprisingly),
>but as noted above it definitely doesn't work once you have moved to Australia:
>Australia doesn't tax non-Aussie domiciled individuals in the same way as the UK
>taxes non-UK doms.
>As to renting out property in WA, I'll leave others to comment, save only to say
>that it seems that these days investing in real estate seems to be heavily reliant
>on capital appreciation and not on deriving surplus rental income - which in turn
>can mean problems if you find yourself heavily mortgaged with a void period (ie
>without tenants).
>Hope this helps.
>Originally posted by NickyTurner:
>> Dear All
>> 2 questions:
>> 1. We have a financial advisor linked to our agents who says that all emigrants
>> are entitled to off shore banking ie high interets Swiss Tony bank accounts
>> etc. This relies upon severing all ties with UK
>> e.g. house, gym memberships, banks etc. Has anyone taken up on this? Is it all
>> its cracked up to be or is it better to put all your money into a house
>> (as someone says on another site that the mortgages are huge).
>> 2. Is there money to made in buying a smaller second property and renting it out?
>> Anyone got any more ideas for making some money (by investment) in Perth?
>I know i am being greedy but would really like a few years out the 9 to 5 to have
>another bambino and dont want to starve in the meantime!
>--
>Alan Collett of Go Matilda,
>http://www.gomatilda.com
>Posted via http://britishexpats.com
