Australian Savings and Tax as UK Resident
Aug 19th 2010, 10:29 pm
#1
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Australian Savings and Tax as UK Resident
Does any know what the situation is regarding tax for a UK / Aussie citizen who returns to the UK but leaves a nest egg in Australia. Does he pay tax to the UK or Australia? Is the interest taxed at source? Is there any way for a non Australian resident to reduce tax liability on Australian investments? Thanks
Aug 20th 2010, 12:58 pm
#2
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Re: Australian Savings and Tax as UK Resident
Once you are living in the UK (and presumably, UK domiciled) you are subject to UK tax on worldwide income.
If you establish non-resident status, then you are only taxed in Australia on Australian source income. If it's interest or dividends, that's usually 10%. If rental or other income, tax rates may be higher.
Usually the way it works is that you add the gross income to your UK income, and then claim a credit for Australian tax charged (up to the limit of the UK tax on the same income). So you end up paying the higher rate.
Establishing non-resident status in Australia:
http://www.ato.gov.au/individuals/co...p=001&st=&cy=1
You may be treated as disposing of your assets for Australian capital gains tax purposes when you leave.
If you establish non-resident status, then you are only taxed in Australia on Australian source income. If it's interest or dividends, that's usually 10%. If rental or other income, tax rates may be higher.
Usually the way it works is that you add the gross income to your UK income, and then claim a credit for Australian tax charged (up to the limit of the UK tax on the same income). So you end up paying the higher rate.
Establishing non-resident status in Australia:
http://www.ato.gov.au/individuals/co...p=001&st=&cy=1
You may be treated as disposing of your assets for Australian capital gains tax purposes when you leave.
Last edited by JAJ; Aug 20th 2010 at 1:00 pm.
