Australian Emigration Advice

Will 10% Death Tax encourage greater migration?

noreply@blogger.com (Montfort) — Thu, 11 Mar 2010 12:48:00 +0000

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

noreply@blogger.com (Montfort) — Mon, 04 Jan 2010 10:40:00 +0000

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

noreply@blogger.com (Montfort) — Tue, 15 Dec 2009 11:31:00 +0000

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

noreply@blogger.com (Montfort) — Fri, 25 Sep 2009 13:27:00 +0000

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

noreply@blogger.com (Montfort) — Thu, 24 Sep 2009 10:13:00 +0000

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

noreply@blogger.com (Montfort) — Wed, 23 Sep 2009 13:17:00 +0000

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

noreply@blogger.com (Montfort) — Tue, 22 Sep 2009 14:39:00 +0000

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

noreply@blogger.com (Montfort) — Tue, 22 Sep 2009 14:34:00 +0000

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

noreply@blogger.com (Montfort) — Thu, 03 Sep 2009 10:51:00 +0000

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!

noreply@blogger.com (Montfort) — Thu, 03 Sep 2009 10:39:00 +0000

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

noreply@blogger.com (Montfort) — Wed, 02 Sep 2009 14:05:00 +0000

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"

noreply@blogger.com (Montfort) — Tue, 01 Sep 2009 15:13:00 +0000

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.

Consumer Trust in Independent Financial Advisers Increases

noreply@blogger.com (Montfort) — Mon, 27 Apr 2009 08:56:00 +0000

Just when the UK public needs to have confidence in financial services, a combination of global economic events, changes in tax and regulatory policy, negative media coverage and the actions of certain institutions have removed much of the trust previously held in our largest financial services institutions.
However, unlike all other parts of the sector, the public’s trust and confidence in Independent Financial Advisers (IFAs) goes from strength to strength. Research findings from respected, impartial, organisations on the issue of consumer trust also confirm that consumers show higher level of trust towards independent advisers than they do tied advisers.
"Restoring Trust in Financial Services: Build on that which works”, sets out the latest research. Key findings of the paper include:
• IFAs are consistently the most trusted of all financial services institutions both in terms of low level trust (the extent to which an organisation can be relied on to do what it says it will do) as well as high level trust (the extent to which the organisation is concerned about the interests of its customers).
• This trust in IFAs has increased over the past 5 years, despite the economic turmoil and challenges of recent times.
• However, the same cannot be said for other financial services institutions who have seen their levels of trust not only remain low, but in some cases decline even further.
Montfort International plc, recently voted 3rd in the Money-Marketing “IFA of the year 2009” awards, welcomes the research’s confirmation of what its clients have been reporting. An increasing number of people from all socio-economic groups are turning to IFAs like Montfort for advice to guide them through these difficult times, and these numbers are set to increase should the conditions continue or worsen.

Australian QROPS may cause problems for migrants

noreply@blogger.com (Montfort) — Thu, 23 Apr 2009 16:18:00 +0000

UK emigrants who have moved their superannuation to what they thought was a Qualifying Recognised Overseas Pension Scheme (QROPS) Australian superannuation scheme may have unwittingly made payments that contravened the UK rules and given their members a tax burden.
The UK HMRC (Her Majesty’s Revenue and Customs) recognize there will be teething problems in the initial stages of new regulation, but any honeymoon period could be short lived. HMRC expects schemes to own up and not wait to be found out if they have made unauthorised payments, as the UK Tax Compliance department is already onto it.
“Various Australian advisers are quite rightly telling people it’s possible to move their money into an Australian “complying fund” but the potential problems begin when they state that the member can elect for the scheme to pay any tax liabilities on growth post arrival. Some Australian pension schemes have inadvertently broken fundamental regulations.
Further instances have come to light where schemes have incorrectly advised that members can, after the first reportable lump sum, take out the lot. Rules appear to have been broken in many cases. Schemes and advisers need to take prompt advice to ensure they correct the situation as soon as possible. We are already acting as a go-between” reports Geraint Davies, Managing Director of UK financial advisory firm Montfort International plc.

New expert NZ financial/legal service

noreply@blogger.com (Montfort) — Fri, 27 Mar 2009 09:22:00 +0000

Three experts have come together to provide a specialist tax, financial planning and legal service for those departing the UK for New Zealand as well as for those moving to UK from New Zealand. They are Geraint Davies, Managing Director of Montfort International plc, Michael Reason, Limited Partner of Michael Reason & Partners LLP (Anglo-New Zealand lawyers) and Greg Rathbun, Director of Gilligan Sheppard, New Zealand based Chartered Accountants.

The service has been launched because:-
• UK and New Zealand’s tax rules which can offer exceptional tax and financial planning opportunities for those migrating between NZ and UK
• Qualifying Recognised Overseas Pensions Schemes (QROPS) need to be specially managed and all three parties have completed preliminary work in order to launch a custom built, compliance driven Self Managed QROPS/NZ Superannuation scheme which will involve meeting the requirements of HMRC and New Zealand Government Actuaries Department
• A Service is needed to ensure that when New Zealanders come to UK to work; the financial advice they receive does not conflict with their NZ advice and vice versa for those moving to New Zealand
• They will be able to regularly exchange changing Technical Regulatory Material
• The firms involved will be a resource for Accountants, Lawyers and Financial Planners in both countries who do not have the technical resources to handle this complex technical area on a day to day basis.

The fiscal relationship between the UK and New Zealand is in many ways complementary and beneficial if used to its best advantage. With an integrated team of advisors to individual migrants and returning nationals, the three plan to maximise the value they can add to the returning nationals and migrant’s estate and financial plans.

Award success for Montfort

noreply@blogger.com (Montfort) — Tue, 24 Mar 2009 14:25:00 +0000

Money Marketing magazine’s 19th Annual Financial Services awards, which took place at the Grosvenor House Hotel on Thursday 5th March 2009, were hosted by the stand up and presenter, Dara O’Brien. The event acknowledged excellence in the provision of workplace financial advice, products and consultancy services.

In the first year in which there was a class in which it was eligible to compete, Montfort International was awarded third place in the category ‘Small Company IFA of the Year 2009’ in recognition for its work in the field of overseas pension transfers and QROPS advice.

When should I seek tax and or financial advice if moving to Australia?

noreply@blogger.com (Montfort) — Fri, 13 Mar 2009 11:45:00 +0000

If your visa affects your tax status (as it does in Australia) the answer to the question has to be that you ideally need to take advice before you apply for your visa. So choosing the wrong visa or entering Australia at the wrong time of the tax year can create for you or lose you tax advantages – as well as delivering the unwanted tax bill. Even the bank account where monies leave for Australia from has tax consequences in Australia! Is it straightforward? Many raise this view however given enough time to plan ahead it can all fall neatly into place.

Many intending migrants will not be used to taking advice which doesn’t result in the purchase of a pension or mortgage or savings product, but migration financial planning doesn’t work that way. One should not assume advice of this nature, i.e. taking international tax and financial advice is for city slickers. This is a serious and potentially costly error of judgment, especially in today’s economic climate where countries are short of tax revenue. But just as tax can hit your pocket it can deliver benefits, didn’t someone once say tax doesn’t have to be taxing? Yes there are tax advantages out there – especially if you have a job offer or want to rent out your home, but these major advantages are invariably lost or eroded if planning is last minute.

It was essentially January 1993 when someone typically with a few thousand pounds in the bank and a pension with two or three years of service need not take advice before departure. It’s all changed. It’s akin to that perennial question of “Did you pack these bags yourself? If you think financials similarly you are on the right track and today’s savvy migrant will know and be eager to take advantage of the opportunities out there and pack there are financials the Australian way.

For more personalised advice phone Montfort International on 01483 202072 or visit their website - http://www.miplc.co.uk/

6 Month Window for UK Pension Transfers to Australia

noreply@blogger.com (Montfort) — Thu, 26 Feb 2009 14:47:00 +0000

For many years UK pension fund members migrating to Australia have been in a dilemma as to whether or not to transfer their funds to Australia within 6 months of their arrival.
Some key announcements by Her Majesty’s Revenue and Customs (HMRC) on the QROPS rules governing the tax on transfer means that pre-departure pension advice is essential, says the UK’s pension transfer pioneers, Montfort International plc.

UK Rules Effecting Australian Pension Advice

Before an HMRC announcement on 12th January 2009 it was understood that many people transferring their UK pensions to Australia, after 6 month window of arrival in Australia, could face a UK tax charge on their Australian taxes if the tax was paid by the Australian superannuation scheme. In addition, this charge would be regarded as an unauthorized payment from the Australian scheme.
This meant that the tax on growth after transfer which the UK pension member would need to pay could not be paid by the scheme in many cases without breaching UK QROPS rules. This meant that the member would have to pay tax out of their own pocket at a potentially higher rate.
The HMRC announcement on 12th January 2009 has clarified that tax paid by the scheme, in respect of the 6 month window for transfer being passed, is no longer an unauthorized payment.
As a result of this announcement an individual transferring to Australia is no longer under pressure to transfer their UK pension to an Australian Superannuation scheme soon after arriving in Australia and can look to transfer when the exchange rate is preferable.

Grand-kids in Oz?

noreply@blogger.com (Montfort) — Wed, 25 Feb 2009 13:05:00 +0000

The following question was recently directed at the Daily Mail’s Moneydoctor.
When my first grandchild was born almost 5 years ago, my son opened a high savings account for her and ever since I have been paying £10 a month into that account. Hopefully that will mount up over the years, especially as she will not be paying tax on the interest for some time.
Last December my second grandchild was born and I would like to do the same for her. However, she lives in Australia, so what would be the best way to get money into an account for her?
Geraint Davies of IFA Montfort International, which specialises in advice for people going to live or work in Australia, advises:
It is risky to send currency through the post and the cost of converting £10 a throw into Australian dollars will eat into most if not all of the gift.
One practical solution is to open an account here for her and let the £10 a month grow here into a more sizable sum that you can then remit to Australia. Alternatively, offer to pay any UK accounts for your own child and ask them to pay the amount in A$ into your grandchild's account.
Any grandparent in your situation should remember that their grandchild, as a permanent resident in Australia, is also a tax resident and this needs to be factored in either if sending money or indeed setting up a UK account in trust for him or her.
The applicable tax rate at the moment is a zero rate up to A$416pa, followed by a band up to A$1307pa where the rate is 66%. The effect of averaging brings this up to 45% on the total interest earned, which the rate for income over A$1307.

Integrated Visa and Financial Advice

noreply@blogger.com (Montfort) — Thu, 02 Oct 2008 14:15:00 +0000

There are many things to consider when migrating to Australia. One of those is the visa that you intend to enter under. Something that many migrants forget about or leave too late is that getting your finances right is just as important as getting your visa.

Both issues are important but are you getting the most from them? Perhaps the best approach would be integrated visa and financial advice. Have you looked at services that offer integrated visa and financial advice? Appropriate solutions for suitable advice depend upon the type of visa granted to you. Using an integrated visa and financial advice agent and service can ensure that the integrated visa and financial advice issues are matched up to give you the best possible start and future for your new life in Australia. Integrated visa and financial advice ensures the efficiency and effectiveness of the planning and timing of each stage of your migration to Australia is managed properly.

Integrated visa and financial advice services allow you to easily keep in touch of each stage of your visa application and accompanying advice ensuring that you are always aware of the latest developments of your integrated visa and financial advice.

Should you opt for integrated visa and financial advice agents and services? Categorically, yes. Integrated visa and financial advice is in our opinion the best solution for anyone migrating to Australia.

Pension Transfer to Australia

Should you automatically carry out a pension transfer to Australia? No. Integrated visa and financial advice services will provide you with the most appropriate advice for your pension transfer to Australia in accordance with the type of visa you are entering Australia under. If your visa and financial advice is integrated then you can be completely sure that the advice you receive for any pension transfer to Australia is of quality and a recommendation is one you should proceed with. A pension transfer to Australia is a one way thing. It cannot be transferred back.

Before employing an integrated visa and financial advice agent and service you should ensure that you employ qualified, regulated individuals that are up to date with the latest developments for integrated visa and financial advice and are also aware and informed of the latest tax and investment situation concerning a pension transfer to Australia.

Whatever your financial intentions, seeking advice early from the qualified advisers at Montfort International (info@miplc.co.uk, call 01483 202072 or freephone 0800 018 3571) before you finalise your migration plans can help you to a more comfortable retirement overseas.

The Importance of New Zealand Pension Advice

noreply@blogger.com (Montfort) — Tue, 30 Sep 2008 12:34:00 +0000

For many years UK pension fund members, migrating to New Zealand, have been transferring their funds to New Zealand superannuation schemes, with little or no
New Zealand Pension advice.

However, with some key changes to the rules on taxing investments in New Zealand, fluctuations in the exchange rate and further communications from HMR&C, New Zealand pension advice, pre-migration, is more important than ever.

Changes Effecting New Zealand Pension Advice
The first legislation change was Portfolio Investment Entities, introduced in New Zealand on 1st October 2007. Their introduction had an enormous impact on New Zealand pension advice because of the tax payable on the growth was potentially reduced for lower income tax paying members.

The introduction of the Fair Dividend Rate (FDR) – a new method of taxing offshore shares held in New Zealand schemes, also influences New Zealand Pension advice. As did the advent of the Kiwi Saver, which is a non-compulsory Employer’s pension scheme, for New Zealand residents effective from 1st July 2007 – will these schemes be Qualifying Recognized Overseas Pension Schemes (QROPS) capable of receiving UK pension transfers?

Exchange Rate
The exchange rate also has an influence on both the UK and New Zealand pension advice. Throughout the early half of 2008, the exchange rate between the New Zealand dollar and the pound sterling has not been positive for those transferring pensions.
Those not taking both UK and New Zealand pension advice may miss out on locking in at a good exchange rate when transferring their UK funds.

Experts at Montfort International plc offer potential migrants free initial consultations at its Surrey Head Office or at locations around Britain. For an informal chat call 01483 202072, freephone 0800 018 3571 or email info@miplc.co.uk.

UK Pension Transfers to Australia

noreply@blogger.com (Montfort) — Fri, 12 Sep 2008 16:09:00 +0000

Following last month’s u-turn by the Australian government regarding superannuation funds, temporary visa holders are again looking at transferring their pension funds to Australia.

Previously, the Australian government had proposed that temporary visa holder’s superannuation funds be held by the Australian Tax Office until the granting of a permanent visa. As a result, Montfort International had advised temporary visa holders that they should suspend their UK pension transfers to Australia until the consultation process had completed.

The consultation process has resulted in a new approach allowing for funds to remain invested in superannuation while the person is resident in Australia. As such, we are now advising temporary residents to reassess whether their UK Pension entitlements should be transferred to Australia.

In addition to uncertainty over the government’s proposals many migrants have deferred transferring their benefits to Australia due to the strength of the Australian Dollar.

Montfort International can assist clients who are concerned about exchange rate fluctuations by first transferring their pension into an arrangement which has its own bank account. This could be used to convert your investment to Australian Dollars when you are happy with the exchange rate. Any onward transfer to Australia would then be in Australian Dollars. As we have seen in the past week with the pound regaining some ground against the dollar, the exchange rate can move quickly, and this strategy ensures you would not be adversely affected by any exchange rate fluctuations at the date of transfer.

If you wish to find out more about UK Pension transfers to Australia please contact Montfort International - info@miplc.co.uk.

Australia wants more immigrants

noreply@blogger.com (Montfort) — Fri, 08 Aug 2008 13:38:00 +0000

On 30th July 2008 Andrew Metcalfe, Secretary, Department of Immigration and Citizenship told the Australian Government Policy Evolution Conference at Canberra that in the last financial year (1/7/2007 – 30/6/2008) over 158,000 migrant visas were granted including 110,000 visas for temporary skilled work. Citizenship was granted to nearly 170,000 people.
His Department wants the migration program to supply skilled labour so that economic growth can continue within “a longer term framework for migration in the context of future labour market and demographic needs”.
The Migration Program for the current year (July 08- June 09) increases to 190,000 places, which makes it the largest program ever. The skilled migration component will make up 133,500 places, the largest ever and a 30 per cent increase on last year's program. The family stream will also grow by 6,500 places to total 56,500 places.
If your intention is to take advantage of the increasing number of opportunities to migrate to Australia, seek advice early from the qualified visa and financial experts at Montfort International http://www.miplc.co.uk/integrated_visa_financial_advice.html (info@miplc.co.uk, call 01483 202072 or freephone 0800 018 3571).