Retirement from Australia to Scotland - anybody done it ?

Hey,

We are looking at getting away from hot Aussie summers for health reasons.

Have had 25+ wonderful years in rural Gippsland on a few acres out of town but its time to go somewhere cooler with less maintenance ( and fewer bushfires) as we retire. Scotland.

Keen to find out if there are many traps associated with running an Aussie super fund and living in Britain. Have heard some horror stories but need to see if there is any truth to them.

Has anybody out there successfully done an Australia to UK retirement shift ?, or can introduce me to either someone who has done the shift or recommend an accounting firm or a financial advisor etc. who has experience in this field.

Getting responses from ATO and HMRC takes aaaaaages.

Have been agonising for a few months now regarding my shed contents. Dont really want to sell but packing it up will be a hassle.

Bill

Scotland- beautiful place but after Australia it will be gloomy, cold and miserable for long stretches of the year.

What about Tassie?
e.g. Hobart has average highs in the low 20's in summer and mid teens in winter.
Lower average total annual rain fall and more sunshine hours than Melb.
You can more easily ship your gear there too

Thanks for the reply Bob,

There are also some family ties in the decision favouring Scotland. Otherwise I agree about Tasmania.

Bill

What ever money you have will be cut in half with the currency exchange.

THe cost of living in the UK is higher than here so your money wont go as far.

Scotland .
Lovely place, people are great climate sucks I worked there for 6 or 9 months in 2001.
Then moved back to England for another two years .
The weather was better there don't laugh to hard .
The Scott's are great resilient hard working folk .
They need to be the climate is very damp.
I would try and spend some winter time in tassie for has long as you can not just a weekend .
U need to let the damp in to your joints to really appreciate it first .
Before moving to Scotland .
Yes the summer in Scotland will be gorges compared to here .
It's the winter that will shock you


Sent from my iPhone using Tapatalk

I also am interested in this thread, and one day, may also make the journey back to the old country.

I spent Dec 1999 till January 2001 in Scotland. I loved the people, the history kicking around in the ground and the Scottish hospitality. I hated the fact that my Aussie wage was going no place at all. The exchange rate dropped to 3:1 for most of that time and it cost a bomb to live there. If the exchange rate takes another dive you will be struggling.
Lovely place, lovely people but I found the winter difficult. Still dark at 9 and dark again by 3. No wonder most of the Scott's head off to all the corners of the world.
Good luck with your journey.

I've heard some horror stories of dealing with UK banks and overseas accounts. You may wish to investigate that before you do too much.

Quote:

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Originally Posted by kevjed

Still dark at 9 and dark again by 3. No wonder most of the Scott's head off to all the corners of the world.
Good luck with your journey.

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Yes you are right ...... but look on the bright side ...... what about summer.:U

My wife worked in Edinburgh early 98 to late 2001 and we used to commute back and forth on airplanes to see eachother - and yes I well remember once when I was getting 3:1 exchange rate and petrol was costing me $2 per litre and it was dark between 4 and 5 in the afternoons. For us its not a leap into the dark, the climate, currency and living conditions are understood as best as we possibly can with that 4 year stint and annual holidays since.

Exchange rate fluctuation is one of the risks associated with maintaining super in Australia and living in another country - one way of avoiding this risk is to cash out super and reinvest in country of residence (or wherever you believe the best return on investment).

The whole concept of shifting to another country is complicated a little by tax, pension and superannuation issues and I was wondering if anybody on the forums has already waded through the issues associated with moving from Australia to UK, and could offer recommendations for sources of information such as websites or experienced advisors either in statutory authorities or private industry.

Bill

I arranged for Bank of Scotland account and registration with the NHS BEFORE I LEFT AUSTRALIA.
I take it you have a British passport or a certificate of right of abode?

Quote:

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Originally Posted by kevjed

I arranged for Bank of Scotland account and registration with the NHS BEFORE I LEFT AUSTRALIA.
I take it you have a British passport or a certificate of right of abode?

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Thanks for the reply kevjed.

Yes all sorted. Dual citizenship, two passports each, bank accounts already set up - this has been in planning for a while now and we have recently identified that we need a better understanding of how super/pensions/savings etc are treated and where its best to keep them.

Interesting that you were able to register with NHS before leaving Australia, my wife has worked in Britain and is registered but I am not, as I have never worked there. I thought I'd have to be resident to do that.

Did you have any hassles with any of these issues listed below when you shifted ? Did you get any good advice from relevant government agencies or private industry advisors ? Please send me a PM if you'd rather not discuss in a public forum.

• British govt & banks can sometimes hold up money transfers whilst they ensure that you are not a terrorist or a money launderer. This would be a problem if you were wanting to buy a house with proceeds from sale of previous house. Need to have documentation regarding source of funds to satisfy any investigation.
• Possibility of not being eligible for an age pension in either country - each country has certain residency and contribution requirements relevant when one applies for state pensions. Although years in other country can be counted there could be traps.
• Understanding income tax, like Australia, you get a certain tax free threshold, then start paying whatever the relevant tax scales are. Need to understand how the Double Tax Agreement affects income and earnings on our Australian super funds.
• Unclear at the moment if UK authorities would want tax if I withdraw lump sums from Australian super whilst resident in UK. Would it be classified as income ?
• Unclear to me at the moment whether or not better to leave super running in Australia or transfer to UK system. Various issues to consider.

Regards

Bill

Quote:

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Originally Posted by steamingbill

Thanks for the reply kevjed.

Yes all sorted. Dual citizenship, two passports each, bank accounts already set up - this has been in planning for a while now and we have recently identified that we need a better understanding of how super/pensions/savings etc are treated and where its best to keep them.

Interesting that you were able to register with NHS before leaving Australia, my wife has worked in Britain and is registered but I am not, as I have never worked there. I thought I'd have to be resident to do that.

Did you have any hassles with any of these issues listed below when you shifted ? Did you get any good advice from relevant government agencies or private industry advisors ? Please send me a PM if you'd rather not discuss in a public forum.

• British govt & banks can sometimes hold up money transfers whilst they ensure that you are not a terrorist or a money launderer. This would be a problem if you were wanting to buy a house with proceeds from sale of previous house. Need to have documentation regarding source of funds to satisfy any investigation.
• Possibility of not being eligible for an age pension in either country - each country has certain residency and contribution requirements relevant when one applies for state pensions. Although years in other country can be counted there could be traps.
• Understanding income tax, like Australia, you get a certain tax free threshold, then start paying whatever the relevant tax scales are. Need to understand how the Double Tax Agreement affects income and earnings on our Australian super funds.
• Unclear at the moment if UK authorities would want tax if I withdraw lump sums from Australian super whilst resident in UK. Would it be classified as income ?
• Unclear to me at the moment whether or not better to leave super running in Australia or transfer to UK system. Various issues to consider.

Regards

Bill

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Please disregard the following if I don't know what I am talking about.....

Is this an SMSF? I would make sure it is in pension mode if it is not already as that takes a lot of reporting out of the equation. I think I would leave it in Oz and run the income through plastic and ATM's, money goes into the accounts and is withdrawn at the other end via plastic. No matter which way you go the exchange rate is a hit, will vary in the future and no one is a clairvoyant in these matters. If set up to draw through a CC I don't see how it becomes income subject to UK tax regulation but then I am only a woodworker. I would probably seek advice from the UK end and then look at it from the Oz end after you understand how the UK regulations will affect you.

Hi Bill,
I Would suggest if you haven't done so you need to spend a summer and a winter in Scotland and see if it something you can cope with, I was born in England, but have scottish ancestors and certainly have experienced the best and worst of the British weather, Scottish weather can be particularly harsh.
Scotland is one of the most beautiful places on earth but if you can't stand the weather it would be hell.

A lot also depends on which part you are talking about, there's a big difference between living in somewhere like Edinburgh to living in the remote highlands.

I can't offer any advice on pensions etc but would say the Australian dollar has taken a big hit against the British pound lately and this is not going to help you.

Quote:

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Originally Posted by Chris Parks

Please disregard the following if I don't know what I am talking about.....

Is this an SMSF? I would make sure it is in pension mode if it is not already as that takes a lot of reporting out of the equation. I think I would leave it in Oz and run the income through plastic and ATM's, money goes into the accounts and is withdrawn at the other end via plastic. No matter which way you go the exchange rate is a hit, will vary in the future and no one is a clairvoyant in these matters. If set up to draw through a CC I don't see how it becomes income subject to UK tax regulation but then I am only a woodworker. I would probably seek advice from the UK end and then look at it from the Oz end after you understand how the UK regulations will affect you.

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Thanks Chris,

Gotta be careful with SMSF, if you are not a Australian resident they are taxed differently than if you are an Australian resident. I understand there is a significant penalty but I dont know if that also applies in pension mode.

You are the 2nd person to recommend leaving $'s in Australia and using credit card to transfer money.

Thanks again.

Bill

I would be trying it as a holiday for a year, so get a visa for that time, and see how you go. Don't cut your ties with Oz with respect to house and property etc.

We actually left Orange NSW for the tropics because of the cold and snow - long cold winters, depression inducing grey skies etc. It will be much worse in Scotland, and you won't be able to assimilate easily at your age

The second attempt at this post, I hope the first one disappeared entirely. I would look at getting a house swap for an extended period of time. Many have returned and many have come back far wiser but poorer and had to start again. Doing a house swap would be the least disruptive way with the opportunity to fully assess whether you make it permanent or not.

Hello Steamingbill,

In relation to your OP, there is a small article in today's Sydney Morning Herald, page 8 of money section.

This specifically relates to UK -> Aus transfers, but mention is made of one Simon Harvey, of BDH Sterling "which provides cross-border financial advice" and "is licensed in Australia and the UK".

Might this be a possible initial port of call for financial planning in relation to your proposed move?

I haven't done a search on this outfit, just found the reference in the SMH.

Cheers,

Mark

Quote:

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Originally Posted by markkr

Hello Steamingbill,

In relation to your OP, there is a small article in today's Sydney Morning Herald, page 8 of money section.

This specifically relates to UK -> Aus transfers, but mention is made of one Simon Harvey, of BDH Sterling "which provides cross-border financial advice" and "is licensed in Australia and the UK".

Might this be a possible initial port of call for financial planning in relation to your proposed move?

I haven't done a search on this outfit, just found the reference in the SMH.

Cheers,

Mark

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Thanks Mark,

Have been in touch with them and they have referred my questions to one of their UK tax consultants.

Bill

If you're not resident in Australia and running an SMSF then there are tax and compliance implications that need to be considered. I you're not resident then I believe you need to have someone who' resident as designated trustee of the SMSF.

Living in UK off a credit card being paid off in Australia. Might work but this is something the ATO target when monitoring tax dodgers and I'd say the British Tax Office would be doing the same..

Quote:

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Originally Posted by kiwigeo

Living in UK off a credit card being paid off in Australia. Might work but this is something the ATO target when monitoring tax dodgers and I'd say the British Tax Office would be doing the same..

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If you declare everything it should not be a problem.....maybe, seek advice from those who know.

From a tools perspective, you'll need to replace your drills, drill bits and router bits as they all spin the other way in the northern hemisphere.

Bit of a bummer having to rebuy them all again.

;)

Think Tassie again, clean air, relatively cheap housing, excellent timbers, everything is close, tools would ship easily to new location, good fishing, great beer, friendly people...
Cheaper to get to than Scotland

Actually, I prefer NZ South Island, Hokitika on the West Coast, or Queenstown or Dunedin. Great places, magnificent scenery

Nah, I spent five years living west coast and Queenstown, you are right about the scenery, some of the best in the world but the same can't be said about the people, I did not have a good experience and came away with only a few friends which is unusual. It is a better place to just visit once. I live in Gippsland now and love it, far better. Scotland sounds awesome though, stick with the plan!