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UK tax when resident in Australia

I'm trying to get my head around the UK tax I will need to pay whilst living and working in Australia for the next few years.

I'll be living and working in Australia so paying Australian income tax on my Australian income. If that is less income tax than I would pay if I had earned that money in the UK do I then need to pay the extra tax in the UK? To make things more complicated I am currently under the Scottish income tax regime.

Comments

  • antrobus
    antrobus Posts: 17,386 Forumite
    ....

    I'll be living and working in Australia so paying Australian income tax on my Australian income. If that is less income tax than I would pay if I had earned that money in the UK do I then need to pay the extra tax in the UK? ...

    No.
    ....
    To make things more complicated I am currently under the Scottish income tax regime.

    That does not matter at all.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    I'm trying to get my head around the UK tax I will need to pay whilst living and working in Australia for the next few years.

    I'll be living and working in Australia so paying Australian income tax on my Australian income. If that is less income tax than I would pay if I had earned that money in the UK do I then need to pay the extra tax in the UK? To make things more complicated I am currently under the Scottish income tax regime.
    this is very simple

    you read the tax treaty ensuring you cover the articles relating to whatever "source" of income you are talking about
    https://www.gov.uk/government/publications/australia-tax-treaties

    you comprehend, for example:
    - you are resident in A for tax purposes
    - employment earnings in A are taxed in A, not in UK
  • Thanks. I was getting myself confused after reading the below thinking I would I have to pay the difference between UK and Australian income tax but I was misreading the bit about ‘non domiciled’ residents. The Scottish income tax complication came from hitting the (even) higher rate sooner than rUK but since I won’t have to pay income tax in the UK on Australian earnings it’s not an issue.

    https://www.gov.uk/tax-foreign-income/non-domiciled-residents

    However, since the Scottish income tax regime is more favourable to lower earners than rUK then it will come in handy if I rent my flat out.
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