Australian National

Australian National

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I have an Australian moving to the UK on a visa. he has a large company in Australia that he is keeping going and anticipates he will draw £250,000  a year in dividends from it into the UK, where he is going to be living with his English wife. He is saying he may set up a UK limited company. I have said that international tax is not my forte but he insists its straightforward and he can just send the money here as a dividend through a uk limited company. I am not convinced.

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Rachel Davies
By Rachel Davies
09th May 2014 13:20

The UK company will need to own shares in the Australian company for it to receive dividends. UK company will be taxed on dividends subject to any credit available for underlying Aussie corporate tax. If he's UK tax resident he will be taxed on any dividends paid to him by UK company as normal. This is putting it very simply without considering withholding tax, double tax treaty and residency (of him and his companies) and still it's complicated... You are correct not to be convinced. He needs to take proper advice here. 

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By David Franks
09th May 2014 15:59

Hi Thanks for your reply. Yes, I was aware of the above but it is the double tax treaty, residency etc. that I know in theory but have little practical dealings with. If anyone on here is interested in assisting in this for a fee, please PM me with experience and rates.

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