Hi new to the site. Have been retired for sometime and have decided to move back to UK to be near family etc.
Sold home in Aust but not ready to buy in UK wondering about how to maximise return on capital, which country to put money in. Interest rates seem appalling in UK & don't think I would be allowed to invest in ISA's as not taxpayer.
Interested to know if anyone has similar experience.

I may be wrong here, but the UK banks have told me ISA's are based on residency.

Perhaps you could look at hedging your bets. Part UK part Oz.

Thanks for that, I will do some research.

Hi Bronson. Scouse and I have been discussing the same thing prior to a retirement move back to the UK, ie where best to keep our capital so we get the best return, and also the best investment method (real estate, term deposits etc).

After seemingly endless research ourselves, we've realized that the best way for us is to get professional advice from someone who's experienced in the taxation systems of both countries, and a good financial advisor. I'm not sure we'll be able to find one person to do both so I anticipate a bit of to-ing and fro-ing before we're finished. I think there are just too many risks in DIY, unless you're well across everything yourself. The pot has to last for the rest of our lives, after all. Good luck!

I am also considering retiring back to the UK so have the same queries as you. I know if you own property ( as a non resident ) and rent it out in Oz you pay 30% tax on that income. The rate may have changed as my accountant informed me of this about 3 years ago.

If you find a good financial adviser who is familiar with both systems could you please pm me as I have had no such luck in this area. I live in Brisbane.

Thanks

yes there are numerous issues to consider - including preservation of capital - access to capital (hard to sell a house quickly if you need funds for example) taxation issues in both countries etc. You should seek professional advice in this regard including taxation and investment/retirement planning from both countries - and yes where you invest will impact returns etc. Pm if you wish a POC for advice etc in the UK.

cheers john

Alan Collett is a chartered accountant in both the UK and Australia and has offices in both countries I think

+1 for Alan Collett

He regularly gives free general advise on here

Seems as if this is not an unusual problem. I live in Brisbane too, and my accountant & financial advisor are just doom & gloom. It is something I have waited years to do & having dual citizenship I naively imagined it would not be too much of a issue.

Why doom and gloom?......all you would be expected to pay is tax on any interest received....same as with any other income.

You would have to pay that regardlesss of where your money is invested.

You can hold foreign currency accounts up to $250000 which are not liable to tax if you declare them not to be as long as they are non interest accounts.

Maybe exchange rate gains will be worth more than the interest....but that is something which can not be predicted.

Thanks for recommendations!

I'm available via a PM or email (preferred) - click on my name to the left of this posting.

Best regards.

From an exchange rate basis the UK pound has always been a strong currency and so is useful in getting the most when transferring into another currency.

as for interest rates, well that really depends how the economy of the country your savings are in is performing.

However, there are fairly safe options with bonds and other forms of trading that can yield good returns above the local interest rates.

also, NEVER use a bank to make an exchange cos their rates and fees are a rip off. TransferWise are a new UK lot and I've used XE for many years to good effect. The Swift exchange fee is always 25unit of the local currency so moving large amounts is more beneficial than small.

You could buy a few investment properties in Oz and use their income to live off. I know the tax breaks are good for people with a mortgage but unsure for those without. ask a financial adviser as could be a good form of revenue for you.

Whilst we can help in certain areas - Alan has been around for a while and is a steady hand who has good knowledge of both tax systems - he should be your start point in relation to the tax affects on your decisions.... A good financial planner can assist with strategy and direction as well but they should work in close consultation with the tax adviser otherwise you will not achieve good outcomes for your personal circumstances.

So the important thing here is that whatever professionals you use you need to ensure they are talking to each other to achieve the best outcomes for you! if not they are wasting your time!!!

cheers john