To Alan Collet

Are there any issues that those of us intended migrants who are already in receipt of a pension (or pensions) in the UK need to be aware of before we become tax resident in Australia? I presume that as there are no funds to transfer, the pension income if simply treated as taxable income, but as it will be income from a foreign source, is it treated by the ATO differently in any way?

I am aware of the UK government policy of freezing the UK State Pension paid to UK citizens living in Australia. Is there any way of avoiding this by taking action before leaving UK

regards,

Neil Cargill

Neil,

Under the UK-Australia Tax Treaty pension income paid from one jurisdiction to an individual who is resident in the other is subject to tax only in the latter.

If you move to Australia and are in receipt of pension income from the UK you should complete the relevant Inland Revenue form so that your pension income is paid to you on a No Tax basis - the form is available here:
http://www.inlandrevenue.gov.uk/cnr/form_aust.htm

You will probably also have to complete IR form P85:
http://www.inlandrevenue.gov.uk/cnr/p85_p85s.htm

I will be delighted to help more formally if you would like to send me an email.

Hope this helps.

Alan Collett
alan-at-gomatilda-dot-com
Registered Migration Agent Number 0102534
and a Fellow of the Institute of Chartered Accountants in England and Wales
http://www.gomatilda.com and
http://www.collettandco.co.uk
Offices in Southampton, England; Perth, Australia; and Melbourne, Australia