Managing Financial Assets Between The UK And Australia
Life as a British expat in Australia can be a truly enriching adventure. Thanks to the high standard of living, friendly locals, laid-back lifestyle and sunny weather, this country has long been an attractive destination for Brits seeking a fresh start abroad.
Whilst living between the UK and Australia can offer the best of both worlds, holding assets in both countries can bring unique challenges. The stark differences in regulations, investment opportunities, and financial advice can be hard to navigate, especially when trying to ensure you can access your money in the most tax-efficient way possible.
Our guide will highlight the essential considerations to help you effectively manage your finances across borders.
Financial Asset Management
As an expat, you may be holding pensions, investments and other assets in the UK whilst now living in Australia. Holding assets in two jurisdictions presents challenges, from accessing quality financial advice to understanding the tax implications.
Many UK financial advisers, regulated by the Financial Conduct Authority (FCA), don’t have passporting rights in Australia, meaning they are restricted from advising Australian residents. As a UK expat, this lack of advice could lead to a misalignment of your investments with your financial goals and risk tolerance.
Furthermore, cross-border investing may limit your access to certain financial products, expose you to currency risk, and reduce your investment options. If you source income from multiple pensions or other assets in both countries, it’s essential to consult a financial adviser specialised in cross-border planning to ensure you have a strategy in place which will optimise your tax obligations whilst minimising currency risk. You can learn more about cross-border financial planning in our guide for British Expats in Australia below.
The Wealth Genesis: Financial Advice for British Expats in Australia
International Financial Planning
As a UK expat in Australia, working with a financial adviser well versed in international and cross-border planning can offer significant protection and advantages.
Retirement Planning In Australia
These experts have access to financial solutions which are designed specifically for UK expats, such as the International SIPP (Self-Invested Personal Pension). This pension scheme provides expats with currency flexibility, with the option to withdraw in multiple currencies. This reduces the currency risk often faced when transferring pension funds abroad.
Additionally, the International SIPP retains the protection of UK regulators while providing a diverse array of investment options to help grow your retirement savings.
Expertise In Offshore Investment Platforms
An offshore investment platform can provide the flexibility to hold and invest in Australian dollars (AUD) or other currencies, helping you manage currency exposure. These platforms also allow for diversified investment choices and access to tax-efficient solutions which benefit cross-border residents.
Optimised Tax And Estate Planning
One significant benefit of residing in Australia is that it does not impose inheritance tax, unlike the UK, where rates can reach 40% for assets over £325,000. An international financial planner can help you restructure your assets to maximise tax efficiency, both for yourself and for future generations. This can include strategies for capital gains tax on assets disposed of in either the UK or Australia, minimising your tax bills and enhancing your overall financial security.
Australian Tax Office: Inherited Property and CGT
Financial Advice In Australia For British Expats
Though managing assets between the UK and Australia can be complex, there are efficient and locally compliant solutions available. Cross-border wealth management for UK expats in Australia involves careful planning and a thorough understanding of tax laws and regulations in both countries.
