Nicholson_family

A question for someone with knowledge of personal tax in UK and Aus: Is there a best time to move between countries? And is the tax year in Australia also April - March?

I'm a 40% tax payer in the UK so I was considering that if I leave the UK in October which is half way through the tax year, will I get a full personal allowance in the UK (leading to a refund of tax paid through PAYE) and another allowance in Australia for what remains of their tax year? Or do I get a pro-rated allowance based on number of months domicile?

Thanks,

beaumonts

cant really help you much - the oz tax year is july- june

louie

If you are British, you get your full UK personal allowance every year, regardless of whether you are resident or not. You could leave the country after you'd either earned the personal allowance or, if you are a higher rate taxpayer, when you reach the higher rate threshold, to avoid paying higher rates of UK tax. If you are on PAYE with no other income, you would always be due a refund unless you stop work between 6 March and 5 April any year in any case because your PAYE tax is worked out on you getting one month's worth of allowances in each month.

In Oz, I believe your allowances are restricted if you are not resident for the whole year, so there's not the same benefit as leaving the UK part way through the year.

JAJ

Correct - but the lower rate tax bands are not so restricted.