Australian Emigration Advice

Canberra updates “Skills in Demand” (SDL) List

2010-04-29T11:10:00.000+01:00

The Australian Capital Territory (ACT) Government has updated its Skills in Demand List. This change will impact business analysts, advertising professionals, and some teachers wishing to immigrate to Australia under the state/territory sponsored program.
The SDL is split into 2 sections, the baseline and the Quota lists. People applying for state or territory sponsorship under a Baseline Occupation may lodge their Australian visa application as long as intake for that occupation is open.
With the Quota list, visa applicants must send a CV and positive skills assessment to the ACT Government, who will then invite suitable applicants to apply formally for sponsorship.
Occupations that have been closed include business and organisational analysts, marketing and advertising professionals, designers and illustrators. Other occupations have also been removed and added to the Quota list, including accountants, a number of programming & IT occupations, and hairdressers. For further information and help with obtaining a visa to live in Australia contact the experts at Montfort International plc on 01483 202072 or info@miplc.co.uk.

Good news for some applicants for Australian work visas

2010-04-27T14:27:00.000+01:00

The Australian Department of Immigration and Citizenship (DIAC) has announced that many Work Visa applicants who have nominated a trade occupation will be able to use an existing skills assessment to lodge a valid visa application.
The change affects only onshore applicants for skilled independent work visas, skilled sponsored work visas and skilled regional sponsored work visas. Previously, DIAC required skills assessments to be dated on or after 1st January 2010, but assessments dated previously can also be used under these new changes.
The changes appear to be a response to enquiries from international students and other applicants who had obtained their skills assessments prior to January.
From the DIAC media release: "Potential applicants expressed concern with the requirement that they provide a skills assessment dated on or after 1 January 2010 if nominating a trade occupation as a number already held a suitable skills assessment issued before this date."

Australian pension idea for Gordon Brown?

2010-04-16T16:52:00.001+01:00

With a Labour Government in Australia, the question is will Gordon Brown go looking for ideas from the land of Kevin Rudd?
Suggestions have been made in the interim response from the Henry Review that there could be compulsory government annuities. Will Gordon Brown follow with his version? The answer is probably “No” if he listens to the recommendation of Australia’s Investment and Financial Services Association (IFSA). They are concerned that such innovations could be damaging as Australia, like the UK, has an ageing population.
Would such a programme cause lower paid workers to subsidise wealthier Australians? It looks like a compulsory government annuities scheme would need Australians to dispatch all or part of their superannuation savings to the Government when they retire. And then the government would determine a permissible annual draw down.
But we all know that manual labourers do not live as long as white collar workers. So if the UK ever adopted Government-run annuities scheme, then it would be a winner for those who live longer, subsidising those who have a shorter life.
The Henry review, to which Montfort International was an overseas contributor, is ongoing review of Australia’s tax system launched in May, 2009 with results expected before December 2010.

Gordon Brown wins election – tens of thousands more Brits plan to migrate!

2010-04-07T15:31:00.001+01:00

If May 6th voters return the current government to power, that’s not an unlikely headline according to migration experts Montfort International plc.

The UK economy is in a dire state and unlikely to improve quickly. Another five years under the dour Chancellor / Prime Minister who, according to an Oxford academic on Radio 4 last weekend, even in the good times spent more on public services than his governments received in revenues is not a prospect that appeals to seemingly an increasing number of people.

In the meantime Australia with its affluent energy sectors and long-term economic prospects has a certain lure tempting would be migrants seeking new opportunities..

Whilst Australia is not weathering the recession entirely unscathed, it has financial reserves put aside over the previous decade and more positive factors supporting its move away from economic crisis. In addition to the better employment landscape, the lifestyle, the climate and the prospects of a tax-free retirement are far better than those facing Britons remaining at home in the UK.

The Australian Bureau of Statistics reported that in June 2008 5½ million of those living in Australia had been born overseas, That’s a quarter of all Australians! Those born in the UK remain the largest group with 1.2 million Brits already calling Australia ‘home’, so new migrants have no reason to feel lonely pioneers.

For more information on the potential benefits of a life ‘down-under’ call Montfort International free on 0800 018 3571, email info@miplc.co.uk or visit their website www.miplc.co.uk. And for some Australia offers tax free opportunities in retirement using Australian Qualifying Recognised Overseas Pensions (QROPS).

Do you want a skilled visa to work in Australia?

2010-04-01T16:40:00.003+01:00

In the UK are you a Contractor or an Employee?

Australia requires absolute clarity on this as it impacts on how you provide evidence for a skilled work visa.

The key differences include
1. Who has control over work?
Employers can direct and control employees work. The employee works in the business of the employer who manages their business as they wish.
A payer can specify how contracted services are to be performed. But control must be specified in the terms of the contract, otherwise the contractor is free to exercise their own discretion.
2. Who decides how the job is done?
An employee performs work according to his or her employment contract.
A contractor performs services as specified in the payer’s contract and only provides additional services by agreement.
3. Who pays how?
Payment is often based on time worked or on ‘piece rates’ or commission.
Payment is dependent on performance of the contract.
4. Who takes the commercial risks?
An employee generally bears no legal risks in respect of the work; since the employee works in the employers business, employers are usually legally responsible for the employees work.
A contractor bears legal risk for his or her work. They can make a profit or loss, and must correct at their own expense any unsatisfactory work.
5. Who does the work?
An employee performs the work personally with right to delegate but not to subcontract.
Unless otherwise specified in the contract, a contractor can subcontract or delegate the work.
6. Whose tools and equipment are used?
Employers usually provide tools and equipment unless otherwise agreed..
Generally, a contractor provides his own tools and equipment.

For more information contact the experts in migration to Australia - Montfort International plc on info@miplc.co.uk or 01483 202072

Down Under Live - Leeds 27th and 28th March

2010-03-24T09:15:00.003Z

Montfort International will be exhibiting at the Down Under Live show this coming weekend 27th and 28th March. The event hosted by the Australia and New Zealand Magazine will be held at the Royal Armouries in Leeds.

The event brings together a wealth of migration industry professionals all under one roof.

Montfort International will be exhibiting at the event and our Managing Director will be speaking at some of the migration finance seminars about the issues such as QROPS that you face in your migration.

Please feel free to come along and meet the Montfort International pension transfer advice, Australia financial advice and New Zealand financial advice team. They will be on hand to give you an insight into the issues you will face and some of the opportunities available to you, including QROPS.

If you are not able to make it to Leeds at the weekend to find out about QROPS, pension transfer advice or to listen to one of our financial seminars and meet our team, but would like to talk to us about your migration financial advice and QROPS, please contact Andrew Hains (Senior Client Adviser) at Montfort International on 01483 202072. Alternatively please visit our website www.miplc.co.uk

Alistair Darling to Target Tax Evasion

2010-03-23T10:56:00.005Z

With the expected crackdown from Alistair Darling on offshore tax evaders in tomorrows budget – must come a need for IFA’s to know they are not becoming unwittingly caught up in the net. How many understand the implication of Gaines-Cooper, Double Tax Agreements, Australia and New Zealand Visas and QROPS. A lot of learning is required very, very quickly!

With heavy betting on the maximum penalty rising to 200% of the tax owed, what will the impact be of poor pension advice.

With stories of QROPS being set up with pensions for those who have no intention of leaving UK, we can see advisers caught up in the onslaught. With HMRC with increasing capability to unearth these people with Tax Information Exchange Agreements and revisions of Double Tax Agreements and footprints left by QROPS transfers. There is a growing need to check who you are dealing with if a QROPS transfer is being recommended. Please be sure to check that your adviser is registered with the Financial Services Authority.

For more information on Australia and New Zealand QROPS pension transfer advice please contact the QROPS pension transfer advice team at Montfort International on 01483 202072 or visit our website www.miplc.co.uk.

Even more reason to come to us early for migration and pension transfer advice

2010-03-22T09:46:00.002Z

One of the biggest barriers to delivering our financial advice quickly to our clients is our reliance on obtaining information from occupational pension scheme administrators. Often, the delay at their end is also due to awaiting details from the government relating to the Guaranteed Minimum Pension (GMP). This, along with various other details, is vital for us to make an assessment as to whether or not to transfer your pension to an overseas scheme known as a Qualifying Recognised Overseas Pension Scheme (QROPS).

This delay has been an ongoing issue and is unfortunately only set to get worse in the near future. Industry figures have recently warned that HM Revenue & Customs will struggle to cope with a deluge of information requests from pension scheme trustees attempting to equalise GMP payments; a problem that has existed for 20 years and now needs to be addressed.

In order to deliver our migration advice to you in plenty of time before your departure and, where appropriate, arrange for a transfer of your benefits to an overseas pension scheme, it therefore becomes even more essential for you to come to us as early as possible for your free initial consultation.

Please contact us on 01483 202072 for more information.

The “Ashcroft question”: Can I, too, escape the UK tax net?

2010-03-19T15:07:00.001Z

You are unlikely to have missed the unprecedented level of media comment about the tax residence and domicile of several public figures and their apparent ability to avoid paying UK tax on at least part of their income. There has also been speculation about a possible exodus of talent from the UK as the higher tax rates and potentially less friendly pension contribution treatment impact on UK residents.
Even before tighter domicile provisions start to bite in the UK we have seen a string of (mostly successful) court cases brought by Her Majesty’s Revenue and Customs (HMRC) on the meaning of residence and ordinary residence in the UK.
Those coming to work in the UK can limit their UK tax exposure on arrival, particularly if split service contracts are used for UK and non-UK duties. It is also possible to escape the UK tax net if you go abroad for full-time work, although there are increasingly tight rules governing visits to the UK to retain family, social and other ties. (The 90 days a year maximum was once interpreted as excluding the days of arrival and departure, but now they too are counted.)
If however you are retiring or merely electing to live abroad then the UK tax situation is far more fraught. A much more distinct break from the UK is required and migrants need expert financial planning advice to ensure they do not inadvertently make costly mistakes in what is an extremely complex situation. For over 15 years the experts at Montfort International plc have been providing exactly this advice to their clients. For a free, no obligation chat contact them on 01483 202072 or info@miplc.co.uk.

Even more need for UK migrants to have expert pension advice

2010-03-17T13:47:00.000Z

Those pensioners who had moved to countries such as New Zealand, Australia, South Africa and Canada (among others) have been dealt a bitter blow.
The European Court of Human Rights yesterday rejected an appeal from a group of UK expatriate pensioners by an 11 to 6 majority.
This means that they will continue to have their UK State Pension payments frozen i.e. with no annual indexation increase. The pensioners wanted to receive increases in line with inflation as they would if they were still resident in the UK.
The Department for Work and Pensions who are responsible for the payment of the UK State Pension were pleased with the outcome as their primary responsibility is to aid those pensioners in the UK who contribute to our economy through spending and payment of UK taxes.
Those who are currently in the process of planning their migration to a country with no reciprocal agreement really need to make sure they have suitable private pension provisions in place where QROPS arrangements and advantages can then be utilized.
Suitable pension planning and appropriate financial advice prior to your migration can lead to your successful migration. Out of those migrants who return to the UK, one of the main reasons for their decision to return is finances. Pension planning prior to departure can mean that you can take advantage of UK tax reliefs. In many instances UK pensions can then be transferred to a QROPS in a more tax friendly jurisdiction.
A decision to transfer to a QROPS however should not be taken lightly, particularly where final salary schemes such as the NHS, Teachers, Armed Forces and Local Government are concerned. You should ensure you take appropriate advice from a UK qualified financial adviser registered by the Financial Services Authority.
For further information and advice on expatriate pension, QROPS planning, financial advice and information on how the European Court of Human Rights ruling will affect migration to Australia or New Zealand, please contact Andrew Hains, Senior Client Adviser at Montfort International on 01483 202072 or andrew.hains@miplc.co.uk.

The Gaines - Cooper case highlights the need for special expertise in migration financial advice

2010-03-16T09:31:00.001Z

Many financial advisers may not have recognised how significant Qualifying Recognised Overseas Pension Schemes (QROPS) have become as part of their financial planning processes. With more and more British Residents becoming expats, those who ignore offshore options do so at their peril. Montfort International’s specialist QROPS arm, Offshore QROPS, recommends advisers and those contemplating a QROPS (wherever they are based in the world) to heed the recent collapse of the Robert Gaines -Cooper UK residency case and his subsequent huge UK tax liability.
If you are moving, have moved or could move to a different country then specialist advice is required. Montfort International has been helping migrants for over 15 years. Sometimes the need to change domicile to simplify tax affairs means insufficient time is spent on ensuring non-UK tax residency. With many expats still with UK pension contracts (whether defined benefits, defined contribution schemes or personal contracts) an offshore QROPS solution may be in their best interests regardless of UK residency or domicile.
Detaching yourself from UK domicile is a must, especially if you have pension assets in the UK, but where do you go for advice?
Your UK IFA would normally head for the major pension providers or life offices - hardly a good choice. They are unlikely to be interested in providing a technical service that will result in haemorrhaging the funds under their management.
Some UK IFAs do offer specialist technical advice, but what do they know about international taxation and visas? So where do you get advice on offshore QROPS? We believe the advice offering at Montfort International stands head and shoulders over others. Montfort has 15 years experience in the field of international pension transfers. If QROPS history is your yardstick then others have less than four years!
Montfort International has QROPS solutions that mean you not only do not need to purchase a life annuity after the age of 75, but can avoid high levels of taxation on fund balances (created by alternatively secured pensions) on death of a scheme member.
Clearly the Gaines - Cooper case means financial planners need to brush up on their international tax expertise. Montfort International already has it, so call 0(044)1483 202072 now or email info@miplc.co.uk.

The Gaines-Cooper case impacts on thousands of migrants

2010-03-15T16:55:00.003Z

On 16th February 2010 the UK Court of Appeal ruled that Robert Gaines-Cooper was liable to pay UK tax despite living based in the Seychelles.
Mr Gaines-Cooper, 72, bought a French-style plantation house in the Seychelles in 1976. He renovated it at a cost of £1.6 million and it has long been his chief residence. He had kept to HMRC’s rules by spending no more than 91 days a year in Britain.
However he also has a house in Henley-on-Thames, where he keeps his collections of paintings, guns and classic cars, and where his second wife and son lived for some time. Mr Gaines-Cooper’s son went to an English school in 2002 and his will was drawn up under English law.
Although the three Court of Appeal judges expressed “some sympathy” for Mr Gaines-Cooper, they ruled that he had never qualified for exemption from British taxes as a non-resident. They said that England had remained the “centre of gravity of his life and interests”. Lord Justice Moses felt Mr Gaines-Cooper had failed to show “a distinct break” from his social and family ties in the UK. Now he may be pursued for tax bills dating back to 1993, estimated at about £30 million.
The ruling is a serious blow for Brits who are based overseas but visit Britain frequently. After the court’s decision Her Majesty's Revenue & Customs vowed to increase its efforts to catch similar people.
Clearly the Gaines-Cooper case means financial planners need to brush up on their international tax expertise, so where do you go for advice? We believe the advice offering at Montfort International plc stands head and shoulders over others. Montfort has 15 years experience in the field of international migration and pension transfers, so contact them now on 01483 202072 or info@miplc.co.uk.

Will 10% Death Tax encourage greater migration?

2010-03-11T12:48:00.001Z

Geraint Davies Managing Director of migration advice experts Montfort International plc believes it just might. “These proposals will hit so many moderate-to-high earners. If you can change countries then not only could you escape this tax, but countries like Australia and New Zealand do not levy any inheritance Tax or Death Duties. It seems according to Davies “Andy Burnham, UK’s Health Secretary may not have factored in the consequences of migration. There is only a certain amount of tax – people are prepared to pay. Having a UK pensions that can be transferred into a Qualifying Recognised Overseas Pension Scheme is looking more and more attractive”.

“Burnham wants to see those with bigger houses (apparently it will affect 17,000,000 families) pay more toward social care for the elderly. So the lure of sunshine, the potential for a lower cost of living and freedom form being told what to do is going to be a magnet and then coupled with the potential to take greater tax free capital and income – will prove to be one slap across the face to many”.

Sound UK exit advice is a must, a pension transfer overseas into a QROPS has significant advantages.

New incentive for Australian residents to declare offshore income

2010-01-04T10:40:00.001Z

The net is closing on those who live in Australia and who have undeclared overseas assets, pensions, ISA’s, shares or foreign pension schemes.
Australian Tax Commissioner Michael D’Ascenzo’s urges Australian residents who may not have declared all income from offshore activities to “do the right thing to get their tax affairs in order” by 30 June 2010.
According to Geraint Davies, Managing Director of Montfort International, Australia is not alone. ‘Qualifying Recognised Overseas Pension Schemes (QROPS) have been seen as the solution to the taxation issues created by non-declaration of UK pension schemes to foreign jurisdictions, but this is not necessarily the right move. In fact some people may have exempt income so suitable financial advice for the country of residence is an absolute must.’
“Australia has highly sophisticated processes and systems to trace fund flows around the world and they are getting better at it,” says Davies. “Banks and other overseas tax jurisdictions can easily identify people with undeclared income. What were once considered highly complex and sophisticated arrangements to dodge liability now provide easy pickings.”
Australia has tax information exchange agreements with nine countries and more will soon follow. With over forty overseas jurisdictions having signed a Double Tax Agreement with Australia, only the most naïve will want to make a non-declaration stance with the Australian Taxation Office (ATO). The ATO matches data supplied by overseas revenue agencies, financial institutions and AUSTRAC with income tax returns to identify undeclared foreign income and to identify Australian residents involved in foreign transactions.
In 2007 the ATO made a similar offer and as at 31/10/09 more than 3,000 disclosures had been made, totalling over $306 million in omitted income and raising nearly $65 million in liabilities.
“Tax advisers have told us of clients with undisclosed foreign income want to come forward to set things right, but are concerned about the consequences of doing so, particularly the potential for criminal investigation,” Mr D’Ascenzo said.
“People can now approach us anonymously for an indication of whether we would initiate an investigation to determine whether there is a potential breach of the criminal law. In making this decision, we will often seek advice from an appropriately qualified panel which will include external members’
“This offer is not valid if we commence an audit so I remind people again — contact us before we contact you. There’s a much higher price to be paid later if we discover undeclared income through an audit process. Penalties can be as high as 90 per cent, and we will seek prosecution in serious cases. There is nothing wrong with holding an offshore account or investing overseas as long as you pay any Australian tax due, however we will continue to focus on the misuse of offshore financial arrangements.”
The new offer doubles the shortfall penalty from 5% to 10% should a person’s additional income from offshore activities be more than $20,000 in a tax year.
There is some comfort for those with additional taxable income of $20,000 or less in a tax year as they will not have to pay a shortfall penalty for that year. This remains unchanged from the previous initiative.
For more information and assistance on structuring your finances for migration to Australia, please do not hesitate to contact the adviser team at Montfort International on 01483 202072.

Important changes to UK Pensions may impact your migration plans

2009-12-15T11:31:00.000Z

On 6th April 2010 the age at which you are able to access retirement benefits from your occupational and personal pension schemes will change from age 50 (currently) to age 55.
The change will affect everyone who is due to reach the age of 50 prior to 6th April 2010 and those who are currently aged 50 but will not reach age 55 prior to 6th April 2010.
What Does This Mean For You?
If you fit this profile, you would not be able to access the pension commencement lump sum from your pension(s) until you reach age 55. If you had planned to review your pensions and access benefits prior to the age of 55, from 6th April 2010 you will not be able to do so. This may have a major impact on your upcoming migration, particularly if you were counting on using your pension commencement lump sum to finance your migration.
What Should You Do Now?
Whether you wish to access the benefits from your pension(s) in the near future or not, we recommend that you speak with a suitably qualified financial adviser to advise on your options in good time prior to 6th April 2010. It is also imperative that any advice takes into account your future migration.
How Else Can Montfort International Help You?
Australia and New Zealand have different tax systems to the UK. As a result any UK assets, investments, savings or pensions that a migrant may have could potentially be taxed “Down-under”. In addition to offering financial advice regarding pensions, Montfort International is able to offer assistance with helping obtain a visa for either Australia or New Zealand residency through our network of Registered Visa Agents.
For further information on how you can benefit from Montfort International’s years of experience of pension and QROPS advice, financial and tax advice and/or visa assistance, contact Nick Bond or Paul Lawson-Tyers on 01483 202072. Alternatively please visit our website www.miplc.co.uk.

Reluctant Landlords 5

2009-09-25T14:27:00.002+01:00

Protect your property from the tax men (5)
The last of a five part series of advice from experts Montfort International plc for home-owning migrants
Tax on the sale of your property
A property which has always been your main residence will qualify for principal residence relief upon sale and will not be subject to UK capital gains tax (CGT). Where an individual has only occupied his property for part of the period of ownership, a proportion of the gain upon sale could be assessable to tax. Note, however that, upon emigration, it is possible to remove yourself outside the scope of UK CGT provided that you are neither resident nor ordinarily resident in the UK for a minimum period. This can provide excellent planning opportunities for individuals who own more than one property in the UK although you will however need to consider Australian CGT.
As previously stated, Australia will tax most residents on their worldwide capital gains. The Australian tax system allows you to claim main residence relief in a similar way to the UK. When a property has not been your main residence for the entire period of ownership, you may only be granted partial exemption.
Fortunately, though, in some instances you can choose to have a property, including your UK property, treated as your main residence for CGT purposes despite not actually living there. Failure to keep your tax affairs up to date can result in penalties and interest on late payments.
If you believe that renting out your UK property may be a viable proposition, seek specialist mortgage and tax advice to ensure you stay on the right side of both the UK and Australian tax offices. Few UK accountants or advisers will be able to advise on the Australian tax situation, so talk free to one that does, Montfort International plc, on 0800 018 3571.

Reluctant Landlords 4

2009-09-24T11:13:00.002+01:00

Protect your property from the tax men (4)
The fourth of a five part series of advice from experts Montfort International plc for home-owning migrants
Releasing equity
In most cases, the home is an individual's major asset and it may be necessary to release equity from the property to help finance the move. If there is a mortgage against the property you cannot sell and decide to rent out, you can claim the interest charged on that loan as a deduction for UK tax purposes. If the remortgage is not structured correctly you may find that the interest on the additional borrowing is not tax deductible in Australia.
Before remortgaging, you will need to ensure that the selected lender will give you permission to let out your property. Generally buy-to-let mortgages carry hefty arrangement fees and the rates are higher than that on a residential basis. As such, it may make sense to remain on a residential mortgage if your lender will grant permission to let. If you are looking to remortgage, there are a few select lenders who will still grant you permission to let once you have lived in the property for a relatively short period after you have taken out the new loan.
You may wish to opt for a fixed rate deal so that you know what your outgoing will be each month and to help you budget. If you intend to sell the property at the earliest opportunity you may opt for a deal with a short term fixed rate or minimal redemption penalties.
If you believe that renting out your UK property may be a viable proposition, seek specialist mortgage and tax advice to ensure you stay on the right side of both the UK and Australian tax offices. Few UK accountants or advisers will be able to advise on the Australian tax situation, so talk free to one that does, Montfort International plc, on 0800 018 3571.

Reluctant Landlords 3

2009-09-23T14:17:00.004+01:00

Protect your property from the tax men (3)
The third of a five part series of advice from experts Montfort International plc for home-owning migrants
Australian Tax on rental income
Australia will generally tax residents on their worldwide income and capital gains. Permanent residents need to include rental income from their UK property in their Australian tax return but can claim a credit for any UK tax paid to avoid double taxation. You should keep proof of all expenditure to ensure you can claim tax deductions for everything you're entitled to, including rates, interest, insurance, letting agent fees, depreciation and capital works.
The profit will be taxable at the highest marginal rate of the individual who owns the property to a maximum of 46½%. If a property provides a positive return, higher rate tax payers may wish to consider transferring ownership to a lower income earning spouse. However, if deductions exceed the rental income and the property makes a loss, this can be offset against other assessable income so it may be advantageous for the higher earning spouse to hold sole ownership of the property. You should also consider how this will affect your capital gains tax position at time of disposal before reaching any decisions on whether you should transfer ownership.
If you believe that renting out your UK property after migrating may be a viable proposition, seek specialist tax advice to ensure you stay on the right side of both the UK and Australian tax offices. Few UK accountants or advisers will be able to advise on the Australian tax situation, so talk free to one that does, Montfort International plc, on 0800 018 3571.

Reluctant Landlords 2

2009-09-22T15:39:00.002+01:00

Protect your property from the tax men (2)
The second of a five part series of advice from experts Montfort International plc for home-owning migrants
UK Tax on rental income
Any income you receive from letting UK property is taxable in the UK after deduction of allowable expenses, even if you cease to be a UK resident.
Once you are living in Australia you will be a non-UK resident landlord so your letting agents (or your tenant if letting agents are not employed) are obliged by law to deduct tax at the basic rate from the gross rent, less deductible expenses. They can only pay your rent gross if they have HM Revenue & Customs' (HMRC) authority. Provided your tax affairs are up to date you can apply for approval to have your UK rent paid gross by completing the appropriate form and forwarding it to the Revenue.
HMRC will usually send you a Self Assessment Tax Return once a year to establish whether you have any tax to pay. If the profit does not exceed the UK personal allowance (assuming you qualify) there is no tax to pay.
If you believe that renting out your UK property after migrating may be a viable proposition, seek specialist tax advice to ensure you stay on the right side of both the UK and Australian tax offices. Few UK accountants or advisers will be able to advise on the Australian tax situation, so talk free to one that does, Montfort International plc, on 0800 018 3571.

Reluctant Landlords 1

2009-09-22T15:34:00.002+01:00

Protect your property from the tax men (1)
The first of a five part series of advice from experts Montfort International plc for home-owning migrants
The tax implications for 'reluctant landlords' bound for Australia.

Due to the currently weak state of the UK property market, some prospective migrants are finding themselves becoming 'reluctant landlords' as they are unable to sell their home prior to emigrating. Most do so in the hope that it will be for the short term and plan to sell once the property market picks up again. In reality however it could still be some time before this is the case, meaning there is a danger of new landlords becoming unstuck if failing to plan appropriately.
With the amount of regulation involved and the difficulty posed in managing the property from such a distance, you would be well advised to consider employing a good letting agent to manage the property for you. It is important that you fully understand your responsibilities as a landlord and it is worth seeking specialist advice regarding your tax position in both the UK and your new home country.
If you believe that renting out your UK property may be a viable proposition, seek specialist mortgage and tax advice to ensure you stay on the right side of both the UK and Australian tax offices. Few UK accountants or advisers will be able to advise on the Australian tax situation, so talk free to one that does, Montfort International plc, on 0800 018 3571.

Migration Finance Expert Advises Caution

2009-09-03T11:51:00.000+01:00

Many migrants waiting for news about whether their UK state pensions will be indexed could find themselves worse off by pinning their confidence on a win in the European Court of Human Rights (ECHR) with their challenge against the way the UK state pensions legislation penalises those who retire to Australia.

British state pensions remain payable to those who move to another country after retirement, but it is frozen at the rate it was when they leave Britain unless their destination country has an agreement with the UK. Unfortunately UK and Australia once had an agreement, signed up to by Australia which was subsequently cancelled – for some reason Australia agreed to no indexation of benefits from the UK.

“Should the case be won much of the win for Australian pensioners will be devoured either by taxation or by 40% of each £ won being deducted from their Australian Age pension - and its likely to be retrospective.” says Geraint Davies, Managing Director of migration finance specialists Montfort International. “However, many migrants can make up their benefits by efficient tax and financial planning pre-departure utilizing the interaction benefits created by a Qualifying Recognised Overseas Pension Scheme (QROPS).”

If moving to Australia, specific care should be taken by anyone who has entitlements to a UK age pension

UK IFAs Beware!

2009-09-03T11:39:00.001+01:00

Any UK Financial Adviser who supplies advice to a client who has the potential to live in any other country has to be extremely careful. We only have to look at the 3½ year old phenomenon of the Qualifying Recognised Overseas Pension Scheme (QROPS). UK options are simply not always the best retirement planning options; indeed a combination of UK and overseas options may be most suitable advice.

If a client clearly has
a) A connection with another country and or
b) A passport for another country and or
c) A spouse from another country and or
d) Has the right of abode in another country and or
e) When asked about future plans (a key aspect of financial planning) mentioned his or her wish to migrate
then QROPS will have to be factored into every aspect of pension advice provided to that client.

QROPS will have to be considered too when pension or retirement planning guidance is provided to any client – even if only to deny the import of a QROPS for that client’s circumstances.

The Financial Services Authority has made clear the need for specialist advice where potential QROPS circumstances prevail. If a Financial Adviser doesn’t find out all the facts they fail the “know your client” rules. If a Financial Adviser doesn’t do this but gives advice with disclaimer after disclaimer in place (i.e. the advice has not factored in the differing circumstances in your chosen country of residence or the advice is only suitable should you intend to remain in UK) then only those clients who don’t read the caveats are going to proceed.

QROPS has arrived.

ECHR to rule on UK State Pensions for those retiring to Oz and NZ

2009-09-02T15:05:00.001+01:00

There has been a two-hour hearing at the European Court of Human Rights (ECHR) today of a challenge against the way the UK state pensions legislation penalises those who retire to certain countries.
British state pensions remain payable to those who move to another country after retirement, but it is frozen at the rate it was when they leave Britain unless their destination country has an agreement with the UK.
Around a million British pensioners live overseas; about half of them in the European Economic Area, Switzerland and countries including the US, Jersey and Jamaica that have reciprocal agreements with Britain. Those pensioners benefit from the annual pension increases in line with UK inflation as if they still lived in the UK.
Australia and New Zealand are among those countries with no such agreement, so some half a million retirees do not benefit from any increases in the rates of UK pensions after they retire or, if they have already retired, the day they emigrate.
The UK Department of Work and Pensions says the government is concentrating on the needs of pensioners living in the UK. In 2005 a House of Lords ruling agreed that those migrating abroad do so voluntarily and in doing so put themselves outside the primary scope and purpose of the UK social security system.
The ECHR judgment is not expected until the spring of 2010.

Currency expert says "Pound could strengthen in coming months"

2009-09-01T16:13:00.000+01:00

It is likely the pound will perform increasingly well against other currencies in the coming months, according to Marc Cogliatti, a currency strategist at exchange specialist HiFX, reported by expatriatehealthcare.com on 20 August 2009.

Mr Cogliatti explained that his opinion that the pound should "appreciate against the vast majority of its counterparts" is based on the UK being well prepared for the end of recession.

This would have a hugely beneficial impact on those planning to migrate and to British expatriates who have kept their funds in sterling, as the same number of pounds would buy more of the currency of their destination state.

Geraint Davies, MD of migration experts Montfort International plc warned that anyone emigrating should ensure they seek proper, professional advice before transferring their assets abroad to avoid adverse tax as well as foreign exchange rate implications.