AU$100K - But with a twist...
Aug 17th 2006, 9:51 am
#1
Just Joined
Thread Starter
Joined: Jun 2006
Posts: 22
AU$100K - But with a twist...
Hi All,
The time has come for use to provide our AU$100K but I have quite a unique situation. While most people borrow the money required, I have a limited company that has all my money tied up in it. I have looked around and have not found anyone else with this type of question so I though I would ask it.
How should I go about getting the funds to Australia? I could...
1. Transfer the money from the limited company as though it was the business making the investment in Australia. I am not sure of the personal UK tax issues here but the advantage would be that the costs could be carried as a legitimate business expense.
2. Take a directors loan - This could be a problem as I will not be able to repay it in the required time frame. This, as far as I know, will make it subject to an automatic tax cost of 25%.
3. Take the dividends, pay the personal and corporation tax... I dont think so! This would be about 50% when all is said and done. Excluding the exchange costs.
Anyone else had this dilemma before? Any input is welcome.
Dean
The time has come for use to provide our AU$100K but I have quite a unique situation. While most people borrow the money required, I have a limited company that has all my money tied up in it. I have looked around and have not found anyone else with this type of question so I though I would ask it.
How should I go about getting the funds to Australia? I could...
1. Transfer the money from the limited company as though it was the business making the investment in Australia. I am not sure of the personal UK tax issues here but the advantage would be that the costs could be carried as a legitimate business expense.
2. Take a directors loan - This could be a problem as I will not be able to repay it in the required time frame. This, as far as I know, will make it subject to an automatic tax cost of 25%.
3. Take the dividends, pay the personal and corporation tax... I dont think so! This would be about 50% when all is said and done. Excluding the exchange costs.
Anyone else had this dilemma before? Any input is welcome.
Dean
Aug 17th 2006, 10:54 am
#2
Reg. Migration Agent
Joined: Jan 2003
Location: Inner Western suburbs of Sydney
Posts: 4,483
Re: AU$100K - But with a twist...
Originally Posted by HoofArted
Hi All,
The time has come for use to provide our AU$100K but I have quite a unique situation. While most people borrow the money required, I have a limited company that has all my money tied up in it. I have looked around and have not found anyone else with this type of question so I though I would ask it.
How should I go about getting the funds to Australia? I could...
1. Transfer the money from the limited company as though it was the business making the investment in Australia. I am not sure of the personal UK tax issues here but the advantage would be that the costs could be carried as a legitimate business expense.
2. Take a directors loan - This could be a problem as I will not be able to repay it in the required time frame. This, as far as I know, will make it subject to an automatic tax cost of 25%.
3. Take the dividends, pay the personal and corporation tax... I dont think so! This would be about 50% when all is said and done. Excluding the exchange costs.
Anyone else had this dilemma before? Any input is welcome.
Dean
The time has come for use to provide our AU$100K but I have quite a unique situation. While most people borrow the money required, I have a limited company that has all my money tied up in it. I have looked around and have not found anyone else with this type of question so I though I would ask it.
How should I go about getting the funds to Australia? I could...
1. Transfer the money from the limited company as though it was the business making the investment in Australia. I am not sure of the personal UK tax issues here but the advantage would be that the costs could be carried as a legitimate business expense.
2. Take a directors loan - This could be a problem as I will not be able to repay it in the required time frame. This, as far as I know, will make it subject to an automatic tax cost of 25%.
3. Take the dividends, pay the personal and corporation tax... I dont think so! This would be about 50% when all is said and done. Excluding the exchange costs.
Anyone else had this dilemma before? Any input is welcome.
Dean
Hi Dean,
You'll need to talk to your UK accountant, however the regulations don't suggest conclusively that the investment needs to be made by you personally. I would suggest you talk to the treasuries to see whether your company can make the investment and the investment be recorded for DIMA purposes as being in your name. Depends how they want to complete the form 1134 I imagine.
If it helps, this is from the DIMA policy:
75.3 Source of capital
Nothing in the Regulations requires applicants to prove that they personally own the money they intend to deposit. Nor does anything require officers to investigate the source of the money.
Cheers,
George Lombard
www.austimmigration.com.au
Aug 17th 2006, 12:15 pm
#3
Guest
Posts: n/a
Re: AU$100K - But with a twist...
Bloody Hell!
Why ask that here?
There are Immigration Agents (usually lawyers) who respond out of their own
generosity on this forum - but you need the advice of an Accountant -
accredited in the UK (and Australia would be nice too).
Half the bloody mob on this forum are fixated on such 'important' questions
as what size paper to use; blue pen or black pen etc etc
"HoofArted" <member51825@british_expats.com> wrote in message
news:[email protected] m...
> Hi All,
> The time has come for use to provide our AU$100K but I have quite a
> unique situation. While most people borrow the money required, I have a
> limited company that has all my money tied up in it. I have looked
> around and have not found anyone else with this type of question so I
> though I would ask it.
> How should I go about getting the funds to Australia? I could...
> 1. Transfer the money from the limited company as though it was the
> business making the investment in Australia. I am not sure of the
> personal UK tax issues here but the advantage would be that the costs
> could be carried as a legitimate business expense.
> 2. Take a directors loan - This could be a problem as I will not be able
> to repay it in the required time frame. This, as far as I know, will
> make it subject to an automatic tax cost of 25%.
> 3. Take the dividends, pay the personal and corporation tax... I dont
> think so! This would be about 50% when all is said and done.
> Excluding the exchange costs.
> Anyone else had this dilemma before? Any input is welcome.
> Dean
> --
> Posted via http://britishexpats.com
Why ask that here?
There are Immigration Agents (usually lawyers) who respond out of their own
generosity on this forum - but you need the advice of an Accountant -
accredited in the UK (and Australia would be nice too).
Half the bloody mob on this forum are fixated on such 'important' questions
as what size paper to use; blue pen or black pen etc etc
"HoofArted" <member51825@british_expats.com> wrote in message
news:[email protected] m...
> Hi All,
> The time has come for use to provide our AU$100K but I have quite a
> unique situation. While most people borrow the money required, I have a
> limited company that has all my money tied up in it. I have looked
> around and have not found anyone else with this type of question so I
> though I would ask it.
> How should I go about getting the funds to Australia? I could...
> 1. Transfer the money from the limited company as though it was the
> business making the investment in Australia. I am not sure of the
> personal UK tax issues here but the advantage would be that the costs
> could be carried as a legitimate business expense.
> 2. Take a directors loan - This could be a problem as I will not be able
> to repay it in the required time frame. This, as far as I know, will
> make it subject to an automatic tax cost of 25%.
> 3. Take the dividends, pay the personal and corporation tax... I dont
> think so! This would be about 50% when all is said and done.
> Excluding the exchange costs.
> Anyone else had this dilemma before? Any input is welcome.
> Dean
> --
> Posted via http://britishexpats.com
