A husband and wife are moving to Australia for an initial period of two years. The husband is working PAYE,and the wife is looking after the home and children. They currently let one house in UK and will let a second when they move. Should they continue to complete SA Land & Property pages and will they both be entitled to personal allowances? Is the PAYE salary of the husband relevant to his UK tax return?
Jim
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Amongst other things that might get overlooked in this move is the question of Child Benefit. It used to be the case that the UK continued to pay this until the entitlement to Aus equivalent commenced, however as our inept legislators allowed the UK-Oz reciprocal SS agreement to lapse this may now have changed. Similarly this has an affect on future pension entitlement as well, and may necessitate ensuring enough UK contributions are paid (at least 10 years worth) to guarantee a UK pension which can now be paid inaddition to the OZ pension.
If the rent is more than £100 per week the tenants will be obliged to deduct tax at source unless your clients continue to submit SA returns - you need to approach what used to be called FICO before they leave to regularise this position. To relieve the tenants from the obligation to deduct at source the rent would have to be paid direct to UK agents or the tenants are notified by the revenue that gross payments may be made.
They will be entitled to PAs and expenses to offset against the Sche A liability but given the length of time abroad the Oz salary should not affect the UK position. The rents would probably also be returnable in OZ with tax credit for any UK tax payable thereon.
Jim, 2 initial questions
Do you mean husband will be UK PAYE whilst working in Oz (ie working in Oz for a Uk Co as if been transferred albeit temprorarily)
Are they leaving before, or after 5 April 2005
Thanks