Tax advice and share dealing

[Leeds1877]

Hi all,

 

i seem to be going round in circles on the Internet and getting nowhere with my UK bank. We have substantial savings from the sale of our house which will be used to purchase a house in Adelaide once the rates improve, however, initially we will be leaving it in the Uk.

 

1. Do we pay tax on interest earned on it in Australia and the Uk or do we pay it in the country it is in? For example, if we have to pay it in Australia then we can complete a form as non evidences to earn gross interst in uk.

 

2. When the funds are moved to Oz to buy a house are there any tax implications?

 

3. Does anyone still pay their national insurance to ensure that they will get a uk state pension? It's worth checking as the contributions are very small (about £100 per year). a form via the inland revenue website will confirm total contributions made so far. I have 19 years (need 30 yrs to qualify) so well worth the next 11 years for the £ 150 ish per week in years to come.

 

4. Can anyone recommend a share dealing service based in Oz that deals in UK equities? We have shares in a uk company that we don't want to sell but need to move to oz...

 

5. If no one has any info on the above can you recommend a tax specialist or financial adviser that we can contact?

 

Many thanks and sorry for the very dull post.....

 

Anna

Edited January 22, 2013 by Leeds1877

[Guest Guest11535]

GM tax should be able to help, it's a company in the UK and Oz, Alan Collett is the director he is a UK and Oz chartered accountant. He is on here every now and again and he is a regular on PIO forum. I know this because we will using him and he is due to ring me this week. Hope this helps.

best regards,

garyupnorth

[Andrew from Vista Financial]

Hi Anna

 

I have given some information in red below.

 

 

 

 

Hi all,

 

i seem to be going round in circles on the Internet and getting nowhere with my UK bank. We have substantial savings from the sale of our house which will be used to purchase a house in Adelaide once the rates improve, however, initially we will be leaving it in the Uk.

 

1. Do we pay tax on interest earned on it in Australia and the Uk or do we pay it in the country it is in? For example, if we have to pay it in Australia then we can complete a form as non evidences to earn gross interst in uk.

 

This depends on your visa status, permanent residents have to declare their worlwide income in Australia (different rules for temporary residents).

 

2. When the funds are moved to Oz to buy a house are there any tax implications?

 

Maybe however if it is money of a domestic nature then generally not http://www.ato.gov.au/rba/content.aspx?doc=/rba/content/1011645656132.htm this does seem to be an area that is always up for debate though.

 

3. Does anyone still pay their national insurance to ensure that they will get a uk state pension? It's worth checking as the contributions are very small (about £100 per year). a form via the inland revenue website will confirm total contributions made so far. I have 19 years (need 30 yrs to qualify) so well worth the next 11 years for the £ 150 ish per week in years to come.

 

The contributions for voluntary payments in the current system are either around 650GBP for each missing year (Class 3) or around 130GBP (Class 2), Class 2 is not automatically allowed there is certain criteria that has to be met and it has to be applied for seperately.

 

However the new system requires 35 years for full pension and the contribution rate is changing also http://www.pomsinadelaide.com/forum/money-finance/35524-uk-state-pension-changes-important-update.html

4. Can anyone recommend a share dealing service based in Oz that deals in UK equities? We have shares in a uk company that we don't want to sell but need to move to oz...

 

There are companies here that will sell UK shares but seem to be only interested in amounts of $50k upwards (the ones I have spoken too anyway) a company like this http://www.computershare-sharedealing.co.uk/ may be more appropriate to use.

 

5. If no one has any info on the above can you recommend a tax specialist or financial adviser that we can contact?

 

Many thanks and sorry for the very dull post.....

 

Anna

 

 

 

 

 

 

 

 

Regards

 

 

 

Andy

Edited January 23, 2013 by Andrew from Vista Financial

[Alan Collett]

Hello Anna.

 

Andrew Williams has (I think) answered your questions.

 

I'll only add that with UK source interest the banks and building societies generally withhold tax at 20%. This can be claimed as a tax offset on your Australian tax return, given that you will be an Australian permanent visaholder - temporary visaholders who are tax resident in Australia are generally not subject to Aus tax on their overseas source income or capital gains.

 

You can seek to have the interest paid by a UK bank/building society on a gross basis if you complete HMRC form R105, but some banks and building societies in the UK are reticent about accepting the form. Discuss with your bank, I suggest.

 

Note that completing form R105 doesn't impact the assessability of the interest in Australia.

 

Form R105 is here: http://www.hmrc.gov.uk/forms/r105.pdf

 

Best regards.