Hi

Can anyone offer any advice please?
Hubby has an RAF pension will this be taxed in UK or Aus?
Also can anyone point me in the right direction relating to income from renting our house in the UK? Confused by the Inland Revenue site - think I can register not to pay tax and sort it out in AUs - Am I right?

Coming over on SIR visa if that makes a difference.

Thanks

Lea

Yes, being on a SIR visa does make a difference ... it is a temporary residency visa, and the tax exemptions in Australia effective 1 July 2006 can therefore be expected to apply to you ... start here and follow the links in the article:
http://www.gomatilda.com/news/article.cfm?articleid=380

In short, you have two main aspects to consider: taxation in the UK and taxation in Australia. In respect of the pension income you have to consider the provisions in the Tax Treaty between the UK and Australia.

Happy to help more formally if you would like to send me an email: alan - at - gomatilda - dot - com

Best regards.

Thanks Alan

Will certainly be in touch - but if its ok will wait until further down the line - especially the time visas seem to be taking at the moment!

Not a problem!

Best regards.

Hi Alan,does what I read on the link you had on other message mean that I will pay tax or not? brain went into overload after 5 lines of the text.I am married to auusie cit,have just gotten spouse visa which I understand is temp for 2 years ,then perm.so if I rent my house out in UK,is the earning tax free for the first 2 years?
Yours patheticlly ,
John

The answer is YES your hubby will be taxed on his HN Forces Pension, however you have 2 options under the double taxation treaty between UK and OZ, 1. pay UK tax on pension and get taxed the difference in OZ or recieve your HM pension TAX free and declare it on your Australian tax return and just pay tax in OZ - I'am the same as your hubby and just waiting for VISA - all the best

Can anyone offer any advice please?
Hubby has an RAF pension will this be taxed in UK or Aus?
Also can anyone point me in the right direction relating to income from renting our house in the UK? Confused by the Inland Revenue site - think I can register not to pay tax and sort it out in AUs - Am I right?

Coming over on SIR visa if that makes a difference.

Thanks

Lea[/QUOTE]

Not correct I'm afraid.

The UK - Australia Tax Treaty is quite clear in respect of where pension income paid from the UK to an Aussie tax resident should be taxed => where the individual is tax resident.

The recent introduction in Australia of the "temporary tax resident" category has complicated the scenario though, and in conjunction with the Tax Treaty provisions moves the taxation of a UK source pension in the hands of a "temporary tax resident" (as defined) back to the UK.

Insofar as claiming a tax credit on your Aussie Tax Return for tax already suffered on UK source pension income is concerned, the Australian Taxation Office has published a number of decisions in this regard - you shouldn't do it this way. The correct treatment if you are not a "temporary tax resident" is for the UK source pension to be paid gross (UK Revenue form FD2 should be completed).

Best regards.

quote:

Originally posted by taffy:
The answer is YES your hubby will be taxed on his HN Forces Pension, however you have 2 options under the double taxation treaty between UK and OZ, 1. pay UK tax on pension and get taxed the difference in OZ or recieve your HM pension TAX free and declare it on your Australian tax return and just pay tax in OZ - I'am the same as your hubby and just waiting for VISA - all the best

Can anyone offer any advice please?
Hubby has an RAF pension will this be taxed in UK or Aus?
Also can anyone point me in the right direction relating to income from renting our house in the UK? Confused by the Inland Revenue site - think I can register not to pay tax and sort it out in AUs - Am I right?

Coming over on SIR visa if that makes a difference.

Thanks

Lea

[/QUOTE]

If you are married or in a de facto relationship with an Australian of the opposite sex you do not meet the definition of a "temporary tax resident" and therefore your worldwide income and capital gains are assessable in Australia.

Best regards.

quote:

Originally posted by Lorri:
Hi Alan,does what I read on the link you had on other message mean that I will pay tax or not? brain went into overload after 5 lines of the text.I am married to auusie cit,have just gotten spouse visa which I understand is temp for 2 years ,then perm.so if I rent my house out in UK,is the earning tax free for the first 2 years?
Yours patheticlly ,
John