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Posted Mon, 21 Mar 2022 12:16:32 GMT by Paul Denton
I am a dual UK/Australian citizen currently living in Australia and am contemplating moving back to the UK in the next few years. What of my Australian assets will need to be declared to HMRC; and which be subject to UK tax. ? When we do decide to move, I am likely to to have the following monetary assets in Australia, (1) Cash savings in Australian bank accounts, most of which I would like to move to the UK to put towards buying a house to live in in the UK, (2) proceeds from the sale of our house sale in Oz, again, to put towards to support house purchase in the UK. (3) Australian shares, which I don't intend to sell; but which normally pay twice yearly dividends (100% Franked) into one of my Australian bank accounts, some of the this money would likely be transferred to UK on a regular basis (is it UK income?) , (4) a fortnightly payment from my Australian pension fund as I am retired, this is paid into Australian bank account. Some of the this money would then likely be transferred to UK from time to time. From the point of view of having to pay UK tax, is it income, or is it just a transfer of some Australian savings?
Posted Tue, 22 Mar 2022 08:17:48 GMT by HMRC Admin 17

As a tax resident of the UK you would be required to declare your worldwide income - and any foreign income remitted
to the UK  would have to be declared in the Foreign (SA106) pages of your Self Assessment tax return.

Foreign income would in your case  include

(a) any bank interest from Australian bank accounts

(b) any overseas Capital Gains on the sale of residential property

(c) any dividend income from Australian shares

(d) any Australian pensions.

You would of course be entitled to claim Foreign Tax Credit Relief re: any Australian tax deducted from your income.

The transfer of money from Australia to the UK would not however have any tax consequences.

Thank you.
Posted Thu, 24 Mar 2022 09:39:53 GMT by Paul Denton
Hi Hmrc Admin 17 - thanks for the quick reply, most of it makes sense and confirms what I have read on the HMRC website. I'm not sure why my "foreign income would include "(b) any overseas Capital Gains on the sale of residential property"? I forgot to mention I have been living in Australia for the last 26 years and my wife and I own our family home here in Aus. I intend selling it before coming to the UK and using the proceeds to buy a house in the UK, so at the point of leaving Aus to come back to the UK, I will no longer have any property here. My understanding was that Capital gains tax on property sales applies for those who have lived outside of UK for 5 years or less. Would I be assessed for "Capital gains" on the sale of my family home in Australia assuming I sell it before moving to the UK? Regards Dingo
Posted Fri, 25 Mar 2022 12:38:43 GMT by HMRC Admin 20
Hi Paul Denton,

You are correct in assuming that if you sell your Australian property while you are still resident in Australia, you are of course not required to declare the transaction to HMRC.
The categories of foreign income that should be declared to HMRC listed in my previous reply would only apply once you become a UK resident. 

Thank you.
Posted Mon, 28 Mar 2022 00:43:18 GMT by Paul Denton
Thank you for clarifying about the house sale, Regards Dingo.
Posted Mon, 09 Jan 2023 00:10:12 GMT by Nikki Hirrill
Hello We have lived in Australia for 17 years and intend to return to the UK to live in July this year. We intend to withdraw all of our superannuation before we return, to fund part of a house purchase. Would these funds be taxable when we transfer them to the UK? Thanks, 
Posted Thu, 12 Jan 2023 14:51:56 GMT by HMRC Admin 32
Hi Nikki Hirrill,

Article 17 of the UK and Australia double taxation agreement, covers pensions and annuities, incuding a definitions of these terms. The article advises that pension payments and annuities are taxable in the country in which the individual is resident. The article make no mention of 'Trivial commutation lump sums'.  This means that lumpsums are taxable in the country in which they arise.  

Australia: tax treaties

Thank you.
Posted Tue, 17 Jan 2023 14:26:23 GMT by Nikki Hirrill
Thank you for clarifying, much appreciated.

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