clandfam

My wife currently receives an index linked pension from a previous employer, she is taxed on this pension in the UK. After we move to OZ, will she be taxed on the pension by the Oz gov. as well?
If anyone knows any good financial "experts" please let me know.
Also, UK family alowance, are we still eligible until we become Oz citizens?

ABCDiamond

You lose the UK Child benefit when you leave UK and become resident in Australia, but you may then become eligible for it here.
http://www.centrelink.gov.au/interne...g_payments.htm



With the pension, the UK tax paid should be offset against the Australian calculation, and only the difference paid in Australia. If you get it without tax deducted in UK, then Australia should charge you all the tax, either way I think you will pay the same.

Check tax rates at:
http://www.ato.gov.au/individuals/co...u=5053&mfp=001

Alan Collett

Re the taxation of the pension income - I think you'll find you're not correct ABCD.

Pension income paid from the UK is wholly assessable in Australia once you are tax resident in Australia under the provisions of the Tax Treaty between the two countries. This means that one should apply to the UK Inland Revenue for a No Tax Coding as soon as you become tax resident in Australia, as tax suffered on a UK source pension under the PAYE system CANNOT be claimed against your Aussie tax liability. There is a form to be completed in this regard:
http://www.inlandrevenue.gov.uk/cnr/form_aust2003.htm

When completing your Aussie Tax Return you should then look into claiming a deduction against your income for what is called the Undeducted Purchase Price of the pension.

If you need any formal assistance with any of the above please send me an email ...

Best regards.

Ozbound7

Is it possible to get a better UPP offset than 8% on a UK state pension?

kirsty&al

Just out of interest; is it possible to 'Pay As You Earn' if your not in the UK?

Regards
Alistair

Alan Collett

Yes ...

Best regards.

Alan Collett

Possibly ... the deduction for the UPP is typically determined by contributions paid and your life expectancy, as determined by the Government Actuary.

You may need to engage an accountant and/or to obtain a Private Ruling from the ATO to get a definitive answer as to the quantum of the deduction.

Best regards.