Going home

This is the third in the Majenda Insights series. My name’s Geoff Taylor. I’m a tax accountant and financial planner based in Sydney. I’ve been looking after the needs of expats for the last 20 years. The topic of this video is ‘Going home’. When I say going home, I mean coming home from an overseas country where you’re going to need tax advice to help you through that process. Before I go into it, this is just general advice. I haven’t taken into account your personal needs, goals, objectives, or circumstances. If you do want me to do that, I would be quite happy to do so.

If we dive into an example, it’s probably the best way to think about it. This is just an example of a couple who are tax residents of the UK now. And they’ve got school-age children. They’ve both got busy careers. And for them, it’s a matter of how do we juggle, when’s the best time for the kids to change in terms of their schooling? When’s the best time to change in terms of career? Then you’re into, should we buy a property asset in Australia? Where do we buy a property asset in Australia? Then what are the tax implications of buying property in Australia before or after triggering tax residence?

And what are the tax implications of selling properties that are already owned in the UK? Then what about our ISAs and our junior ISAs being individual savings accounts, which are tax protected in the UK? But what’s the treatment in Australia? A different treatment there, not going to get the same tax protection.

Typically, our clients will have a range of different assets. It might include pensions, in the case of the UK, SIPPs. They might have property assets. And they’re interested in how do they optimise their position? Now, the UK rules have changed, or are about to change, quite dramatically. That’s a factor, the inheritance rules. There’s a lot of complexity there. That’s just one example. But if you then go to Switzerland or another European country, it might not be as complex, but there’s still a range of issues that need to be taken into account.

If you need US tax advice, I can recommend a company that can provide specialised advice there. I don’t do US tax advice, but there are companies out there that can help. Effectively, what we do is we would prepare a detailed tax strategy paper that’s tailored to your specific needs. And typically, I would like to do that six months to two to three years ahead of transferring back to Australia, so that if you do need to make any transaction before you go, you can do it. You have time. Or it may well be better to hold off and do the transaction after you’ve triggered tax residence in Australia.

It’s really around knowing what the options are, knowing what the tax implications are. Typically, our tax advice might have eight to 12 issues. And we will go through and explain the tax law in both countries and the things that you need to be aware of. I hope that’s been of benefit in giving you some insights, no matter which country you’re coming back from around the world. We’ve got the expertise. I work with partner firms, Joanne Lambeth, for example, in the UK, and other firms in other countries. We’re able to cover off the range of tax issues and provide you with the necessary advice. I hope this video has been of benefit. And I look forward to catching up soon.