Tax Haven Australia?
If you plan to retain UK assets when you migrate to Australia you need to be aware of your tax burden in both countries say migration finance experts Montfort International plc (www.miplc.co.uk).
Your Australian tax position for your foreign income is affected by your visa status. For instance a holder of a temporary contributory parent visa subclass 173 will benefit from most types of foreign income and capital gains not being assessable to Australian tax - such as UK pensions and gains arising upon sale of UK assets. On the other hand, the Australian Tax Office (ATO) would seek to tax the holder of a contributory parent visa subclass 143 on their worldwide income.
What with there being hundreds of visa permutations, one shouldn’t necessarily assume that local Australian advisers are as well-informed on whether you qualify for the foreign income exemption, meaning you may miss out on valuable tax benefits.
The good news is, migrating on a temporary visa can provide excellent tax planning opportunities. Provided you time the sequence of events correctly, you can dispose of assets without any liability to UK or Australian Capital Gains tax, as well as investing your capital to provide tax free income to you in Australia. These benefits coupled with the fact that there are no death duties in Australia, makes the Retirement Investor visa an attractive option for wealthy retirees. Montfort International’s holistic approach of providing integrated visa and financial advice is designed to enable our clients to maximize the tax benefits available to those migrating under a temporary visa.
Whatever your financial intentions, seeking advice from the qualified advisers at Montfort International by calling 01483 202072 or freephone 0800 018 3571 or emailing info@miplc.co.uk, before you finalise your migration plans can help you to a less taxing life ‘Down-under’.
Your Australian tax position for your foreign income is affected by your visa status. For instance a holder of a temporary contributory parent visa subclass 173 will benefit from most types of foreign income and capital gains not being assessable to Australian tax - such as UK pensions and gains arising upon sale of UK assets. On the other hand, the Australian Tax Office (ATO) would seek to tax the holder of a contributory parent visa subclass 143 on their worldwide income.
What with there being hundreds of visa permutations, one shouldn’t necessarily assume that local Australian advisers are as well-informed on whether you qualify for the foreign income exemption, meaning you may miss out on valuable tax benefits.
The good news is, migrating on a temporary visa can provide excellent tax planning opportunities. Provided you time the sequence of events correctly, you can dispose of assets without any liability to UK or Australian Capital Gains tax, as well as investing your capital to provide tax free income to you in Australia. These benefits coupled with the fact that there are no death duties in Australia, makes the Retirement Investor visa an attractive option for wealthy retirees. Montfort International’s holistic approach of providing integrated visa and financial advice is designed to enable our clients to maximize the tax benefits available to those migrating under a temporary visa.
Whatever your financial intentions, seeking advice from the qualified advisers at Montfort International by calling 01483 202072 or freephone 0800 018 3571 or emailing info@miplc.co.uk, before you finalise your migration plans can help you to a less taxing life ‘Down-under’.
Labels: Tax Haven
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