Both Australia and New Zealand have a tax known as the Foreign Investment Fund (FIF) taxation.
The purpose of FIF tax is ensure that Australian and New Zealand residents, who have overseas investments, are taxed on the growth of these investments on an annual ongoing basis. The tax is paid by the individual, directly, at their highest marginal rate of tax. However, some UK investments are exempt from FIF and there are threshold limits, in both Australia and New Zealand, where FIF is not considered.
Therefore, FIF is a particularly important tax to consider for migrants, from the UK, holding certain UK investments. Advice is required, pre-departure, to establish as to whether a particular type of UK investment or asset would be subject to FIF, if retained in the UK, whilst the individual is resident in Australia or New Zealand.
FIF, therefore, is an important factor, in the advice process, as to whether it is tax efficient for an investment to be retained in the UK, restructured or sold.
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