Emigrating to Australia

Hi I am presently living in Scotland, in receipt of a Government pension (military) and state pension. Next year, I will be emigrating to Australia and will be applying for a permanent visa through the Aged Parent Visa process (804). I am told, the 804 visa can take between 15 and 30 years. During the waiting period I will be issued a Bridging Visa A, allowing me to remain in Australia until my Aged Parent application is approved. On researching Australian taxation rules, it appears that while on a bridging visa, I do not pay tax on any earnings accrued outside of Australia. Consequently, my questions are: 1. Is it correct that I would continue to pay income tax from my two pensions only in the UK even though I would not meet the UK tax residence status or own a property in the UK. 2. If I do pay tax in the UK, would I continue to pay under the Scottish system or revert to the English system. Many thanks Martin

Hi,

As your UK military pension is a government pension, it will remain taxable in the UK, even when you are resident in Australia. Your state pension will not be taxable in the UK, nor will any private pensions you may have.  

As you will not be resident in Scotland, you would revert to the national rates of tax

You will need to complete form P85 to advise HMRC that you are leaving the UK. You can submit the P85 here:

Get your Income Tax right if you're leaving the UK (P85)

You will need to create a government gateway user ID and password, if you do not already have them. If you are unable to di so then there is an option to print off the completed form and post it to HMRC.

Thank you.

Hello HMRC Admin 19 I am in a similar position to Mart884. Article 17.1 of the DTA with Australia says: Pensions (including government pensions) and annuities paid to a resident of a Contracting State shall be taxable only in that State. Article 18.1 of the DTA with Australia says: Salaries, wages and other similar remuneration, other than a pension or annuity, paid by a Contracting State or a political subdivision or local authority of that State to an individual in respect of services rendered in the discharge of governmental functions shall be taxable only in that State. So the DTA seems clear that if you are a resident of Australia they, not the UK, will be taxing pensions (including GOV pensions such as military or civil service). Can you confirm that the DTA is wrong and your advice is correct? Thanks

Hi,

Both are correct as the other customer had different circumstances to apply to their own situation.

Each person needs to be looked at individually, considering their own circumstances when applying for DTA exemption

Thank you.