20 October 2016
The UK's decision to leave the EU has sent shock waves throughout the world and the unprecedented number of people who attended the recent Down Under Live expo brought into sharp focus that emigration to Australia and New Zealand is quickly becoming the solution for many.
The New Zealand government, wary that the number of new migrants has been growing substantially over the last few years, has announced that it will be implementing changes to reduce these numbers. However the numbers will not drop dramatically as plans reveal that over the next two years, the projected figure of 100,000 new residents will be brought down to around 95,000. Instead of reaching the target of 140 points to obtain residency, candidates will now require 160. The most notable reduction is the 5500 places held in reserve for families which has now been cut down to 2000. The government has suggested their decision to implement these new directives has been based purely on the issue of balance ensuring that skilled homegrown workers are fairly reflected in the employment market.
In addition to this news, the government has also announced that South Africans visiting New Zealand will need a visa from this November, as a result of the growing number of fraudulent South African passports discovered this year.
These new rules are believed by experts to be the start of a greater shift towards stricter controls over immigration in New Zealand, with Australia taking a similar stance. Therefore if you are considering a new life abroad in either New Zealand or Australia, Seven Seas Worldwide recommends making a decision sooner rather than later: Do the research, ask the questions, establish if a move abroad is right for you at this time.
A decision like this is not to be taken lightly, but if you take too long to make it, you may find your opportunity to take up residency has been taken away from you anyway. Take a look at the range of services Seven Seas Worldwide has to offer. Get a free quote within minutes, and let's start your journey today!
08 July 2015
If you are planning a move from the UK to Australia you have undoubtedly considered some of the key factors already, such as your visa, shipping, storage, residence and transportation. Your move may already be underway, along with all the stresses which go with it.
Equally important is to ensure you understand your tax commitments both in the UK and Australia. After all, the last thing you want to do is add to your moving stress by getting an unexpected tax bill.
We’ve created this brief guide to tax in Australia for expats to help ensure you understand the basics of the tax system as an expat living down under. We will also touch on the UK tax implications when leaving the UK as this will always be relevant in the tax year of departure and the subsequent tax year.
The information on this article is intended for guidance only. It is based upon our understanding of current legislation. No liability is accepted by us for actions taken in reliance upon information given and it is strongly recommended the appropriate advice should be taken.
Tax considerations for British Expats moving to Australia
It is very easy to assume that by leaving the UK you will suddenly be exempt from UK tax. Unfortunately, this is not the case and depending on your personal circumstances you may be subject to UK taxation (income tax, capital gains tax and inheritance tax) despite living in Australia.
UK tax residence status
Your exposure to UK taxation will depend on your tax status in the UK. If you are considered a tax resident in a specific tax year, you will still be subject to the tax rules of the UK in that year. For example, if you are UK resident and domiciled, you will be liable to income and capital gains tax on your worldwide income.
From 6 April 2013, the UK government introduced the Statutory Residence Test (“SRT”) which are a complex set of rules to be used to determine an individual’s residence status in the UK. The SRT is designed to give individuals greater certainty and clarity as to whether or not they are UK tax resident.
Normally, if you are resident in the UK for any part of a tax year you will be taxed as a UK resident for the whole of the tax year. However, there are special rules included in the SRT which may apply to you in the tax year you left the UK. These rules split the tax year into a UK part, when you are taxed as a UK resident and an overseas part when you are taxed as a non resident. However, there are strict conditions for meeting the criteria for claiming split year treatment. If you do not meet the split year treatment conditions, you may be taxed on your worldwide income during the entire tax year although you left the part way through the year.
UK Income Tax
Typically income you generate in the UK, such as from renting out a property, will potentially be subject to UK tax. At this time you may still benefit from the UK personal tax allowance which is currently £10,600 (tax year 2015/16). If your total UK arising income is within your tax free personal allowance, you may not have to pay UK tax at all, however you will still be required to declare it in your annual tax return.
Even if you are not tax resident in the UK, if you are temporary non resident and you subsequently return to the UK within five years of leaving, certain income previously untaxed in the UK will be taxable on your return.
UK Capital Gains Tax
While it may be true that as a non UK resident you are not subject to capital gains tax on gains made outside the UK. If your non-residence status is temporary (i.e. fewer than five years) you may still owe capital gains tax.
Similarly, even if you are a non-resident you may also be subject to capital gains tax in the
UK if the gains were made in the UK. For example, until April 2015, if you were to sell your UK residential property while non-resident you would not be subject to capital gains tax. However, this rule changed and non-residents are now subject to capital gains tax on gains made (from 6 April 2015) on disposal of only residential properties.
The amount of tax will vary dependent on the individual’s personal circumstances. The Capital gains tax rates are 18% and 28% and you may be entitled to the capital gains tax free allowance (£11,100 in 2015/16 tax year). You may also be entitled to claim other reliefs such as principal private residence if the property was used as your main residence at some point during the period of ownership. Letting relief will be available if the property was your main residence at some point during the period of ownership and it was rented.
UK Inheritance tax
As things currently stand, anybody who is a UK domicile is subject to UK inheritance tax on their worldwide estate.
Your domicile is not the same as your tax residence status. Domicile is a complex concept of general law and is based on case law. Your domicile is linked to your father’s domicile, which is usually the country where you father was born or considered as his permanent home when you were born. Changing your domicile is not straightforward and requires a significant amount of evidence to show that you have no intention of returning to the UK. For example you will need to cut all your UK ties including disposing of all your UK assets and establishing a permanent residence in the new country you immigrated to.
This means that, even as an Australian citizen who has left the UK, you may still be domiciled in the UK and therefore subject to UK inheritance tax.
UK tax returns
Not all people living in the UK have to complete a tax return. However, you are obliged to complete one if the HMRC sends you a tax return request form (SA100).
You are more likely to be required to complete a tax return if your tax affairs are more complicated. As an expat, your tax situation naturally gets a little more complicated. If you are a non-resident landlord, for example, by law you will be required to complete a tax return. The onus is on you to notify H M Revenue and Customs (“HMRC”) that you started to receive UK rental income. If you notify them late you may be liable for penalties.
As the tax affairs of non-residents are not straight forward, it is important that you do not try to submit a tax return yourself as it may lead to errors which may incur penalties. Instead you should seek assistance from a specialist accountancy firm who can assist with the process and ensure you are correctly completing your tax return – and on time. Furthermore, for example as a non resident landlord, an accountant will ensure you are claiming all the expenses you are entitled to claim which may in turn reduce your tax bill.
Tax in Australia as an Expat
It is also not necessarily the case that because you pay tax on your UK income that it is not also taxable in Australia.
The Australian tax system has two main types of residence status: Australian resident for tax purposes and foreign resident for tax purposes. Both are required to complete an Australian tax return.
An Australian tax resident’s worldwide income is subject to tax in Australia. Typically you are considered a tax resident of Australia if you have been in the country for a period of six months or more. The Australian Government Taxation Office have a useful online tool which will help you understand your tax residence status in Australia.
Foreign residents will only be required to declare income or capital gains tax on income/gains generated in Australia when submitting their Australian tax return.
It is also important to know that, like the UK, Australia does have a tax-free allowance, however if you are deemed to be a foreign resident in the tax year you will not be able to take advantage and any income or gains generated in Australia will be subject to tax.
While there is a double tax treaty between the UK and Australia, this is not automatically applied. If you are considered a tax resident in Australia, the Australian authorities will apply tax to your gross worldwide income first – and then consider or provide a credit for UK tax already paid on the same income, where you supply evidence of those UK tax payments.
This treatment also applies to any UK rental income you receive from property in the UK.
If you receive income from a UK pension, it may be beneficial to request that it is paid without UK tax deducted.
An alternative with a personal pension is to consider moving outside of the UK into a Recognised Overseas Pension Scheme. This will mean that it is not subject to UK tax, and may be able to provide other benefits as well. However, you should always seek independent advice before making a decision about your pension – especially in light of the recent pension reforms.
In this wonderful digital age we live in, finding the information about tax is a lot easier than a few years ago.
The UK government website is a great place to start for the facts relating to UK tax, although it can be a little technical and scary if you’re not familiar with tax and accountancy.
The Australian Government also has a number of resources available for people already tax resident, and those who could be deemed foreign resident.
Another website which provides easy to understand tax information for expats is Experts for Expats, whose network of advisers helped us put together this post (after all we’re experts in international relocation, but not accountancy). They even offer free expat tax advice from a qualified adviser if you’d like to speak to someone directly.
Remember, tax doesn’t have to be stressful. Make sure you understand the basics and seek the help of the experts who will help ensure that you’ve got no expensive shocks waiting round the corner.
06 January 2015
Arriving in the country where you have chosen to spend the rest of your life (or at least a significant portion of it) can bring on a mixture of emotions – excited to be starting anew yet feeling blue about the people and places being left behind. And coupled with this multiplicity of contrasting feelings is a vast list of logistical things you need to do now you’re here. Luckily, Seven Seas Worldwide is here to shoulder the burden.
Moving furniture and personal belongings from one country to another requires a lot of planning and Seven Seas Worldwide can help every step of the way with collection, shipping and delivery, in most cases, door-to-door. But what if your consignment arrives in your destination country and you’re not yet in a position to move it into your new address? Well, Seven Seas Worldwide has got that covered too.
On top of a global relocation network, we also offer storage at a very affordable rate so as soon as they arrive in the destination country and are cleared through customs, we can transport them to our nearest secure storage facility until you’re ready to receive them. We do this via our relatively new invention, the StoreCube™; this is a cube inside a trailer that can collect, store and redeliver according to your needs.
The StoreCube™ is an off-shoot of our hugely popular MoveCube® and is designed to provide a safe and inexpensive alternative to the usual storage companies, none of whom provide a transportation service similar to ours.
Should you be interested, get a free quote now via our freight calculator or talk to a member of our friendly team. They’re always here to help.
Oh and good luck with the next chapter. Make it a good one.
09 December 2014
Moving overseas is probably one of the biggest decisions of your life and the last thing you want to be weighed down by is the logistics of the whole thing - that's what shipping companies are for. However, there is always the possibility that you might need to put your items in storage before moving them to your chosen destination abroad - and that's something that shipping companies can't help you with...except us. Obviously.
We hit upon the idea that if we're moving people's belongings around the world and placing them in depots before shipping them off, we may as well turn these depots into secure storage facilities. And that's what we've done. Not only that, we now also provide a method of transport that collects all items from your home address so you don't have to cart them to the storage facility yourself. This is something that even self-storage companies don't do.
This method of transport is called a StoreCube™ and it's an off-shoot of our highly successful MoveCube® service. It's the simplest way of moving your stuff into storage and it works like this. First of all, you arrange the move with Seven Seas Worldwide via our frankly brilliant freight calculator. We'll then turn up at a time convenient to you with a StoreCube™, a container inside a trailer that is towed to your address by a Seven Seas Worldwide van. You will then have a few hours to load up the cube with your belongings. Later, we shall return to collect your packed cube and transfer the contents to the nearest Seven Seas Worldwide storage facility, ready to be shipped at an agreed time.
Don't go to a shipping company that will only do half the job - talk to Seven Seas Worldwide about moving, shipping and storage.
30 September 2014
There are many families in the UK moving to Australia these days. Why? Well, mainly the weather. Let's face it, they do weather better over there. Oh and the seafood is amazing. Plus you can get nicer-looking houses with swimming pools and built-in barbecues. Yes, moving to Australia has got a few things going for it to be sure.
The downside to emigrating to Australia is it has the potential of being one of the most stressful periods of your life. Anyone who has watched BBC One's Wanted Down Under will be aware of the turmoil involved in making such a big decision. There are a lot of key areas to assess before purchasing that one-way ticket to Oz and over the years, Wanted Down Under has put this into sharp focus by following hundreds of families from the moment they start packing their treasured possessions to the day they throw out their last sheet of bubble wrap.
Of all the key areas that need addressing before the big move to Australia, moving all your personal belongings from A to B is perhaps the least attractive. There's no avoiding the fact that it's a big job and requires a lot of time and money as well as plenty of manual labour. Luckily, Seven Seas Worldwide's MoveCube® service provides an ideal opportunity to reduce all three of these factors.
One hazy day in late summer, a young couple from Dartford decided that a MoveCube® would be the answer to their relocation problem. We joined them as they loaded their container - and we weren't the only ones.
The crew from Wanted Down Under were also there, for this couple decided they wanted their adventure to be part of the long-running daytime TV series.
A MoveCube® is a far more convenient alternative to the services of other shipping companies because it's a container inside a trailer. When the driver arrives at your address, he leaves the MoveCube® with you, allowing you to load up for around 4-5 hours. Once you've loaded the container to suit your needs, our driver will return to collect. The next time you see your belongings will be in an Australian MoveCube®, parked outside your new address Down Under. Sounds good doesn't it?
Today's stars of Wanted Down Under chose the Seven Seas Worldwide MoveCube® not only because of its smart approach to moving but also because we provide a personal service. We know how much pressure you're under relocating to Australia and we know that the simplicity of a MoveCube® service goes some way to lightening the load and perhaps creating a chink of light at the end of the tunnel. (That's a metaphor by the way - flying to Australia is better than tunnelling.)
With that in mind, we provide Seven Seas Worldwide boxes (specifically designed for long journeys), packing materials, a trolley for the heavier items and even a couple of traffic cones so you can mark out the space where you'd like the MoveCube® to be parked. Yep, we've thought of everything. Not many shipping companies do.
The MoveCube® has already proven very popular in Australia and continues to grow in other countries including China, South Africa, New Zealand and Hong Kong.
And another pretty awesome thing about the MoveCube® is we can adapt it to suit your needs. So for example, if you’re moving to Australia out of a studio flat, the Medium MoveCube® is the option for you. If you’re moving out of a two bedroom place, we suggest choosing the Large MoveCube®.
As the driver drove away to attend to another family in London, our couple from Dartford began loading the MoveCube®, filling the container with furniture, bicycles and assorted keepsakes, safe in the knowledge they would soon be whisked away safely to Australia.
We wish them well on their adventure and look forward to the episode airing on BBC One!
If you're about to embark on a similar journey, check out our website now and get a free quote to see how much you could save with our perfect solution to household moves.