Moving to Aus, advice needed please.

fatbeetle

Thanks for your indulgence here, please move to another forum if I've mucked up.

My situation is this;

Next month I will be moving to Australia for a few years, (no fixed period, but probably 5 years or so.) In the UK I will have my state pension, and the rental on our house, paid into my (Lloyds) bank account. I will not need this money while in Australia, unless a huge unforeseen emergency happens.

So, rather than have the money just sat in my current account, I'd like to have it earning interest. I should be able to put between £500 and £2000 monthly, into an interest making account, depending on circumstance.

If you were in my shoes, what would be your best and safest option / choice do you think?

My thanks in advance

eskbanker

Once you're no longer resident in the UK, your financial options here are significantly reduced - the first port of call will be to ascertain from Lloyds whether they're prepared to allow you to continue with a current account once resident elsewhere. If so, then a savings account with them might be best…

wmb194

https://forums.moneysavingexpert.com/discussion/6663245/moving-to-aus-advice-needed-please

You’re going to have a problem but if you can keep a UK current account whilst abroad NS&I is usually an option. Then there is the likes of Lloyds International in the Channel Islands and the Isle of Man.

fatbeetle

Cheers, I kept the account going from 1999 to 2020, while I lived in Aus, without problems, but will look into it.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81954567#Comment_81954567

The regulatory environment is much tighter now than it was in 1999!

callum9999

https://forums.moneysavingexpert.com/discussion/comment/81954586#Comment_81954586

What exactly do you think they're going to do? Hire a team of private investigators to stake out their address?

Bostonerimus1

Make sure you understand your tax situation. Once you become an Australian tax resident you will have to figure out how and where your UK rental income and interest are taxed.

gt94sss2

My advice would be to open an account with HSBC UK before you leave - if only to receive your pension payments

Other banks like Barclays (and I think Lloyds) no longer allow their UK customers to hold standard bank accounts if they move overseas.

You can also open an account with HSBC Australia which makes transferring funds easy if you do end up needing too.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81954606#Comment_81954606

The point I was making is that anyone notifying their bank of emigrating in 2026 shouldn't automatically assume that they'll get the same response that they did in 1999.

poseidon1

If you have not sought UK exit tax advice or Australian tax advice on a permanent residency basis, obtaining the 'best' interest rate on sterling funds likely the least of your concerns.

Hopefully you have already decided whether you will continue submitting UK self assessment tax returns on all your UK sources of income ( thereby claiming personal allowances) or default to the Non Resident Landlord scheme (NRLS) where only UK tax deducted at source by the letting agent occurs on rental income only. - see below

https://www.gov.uk/government/publications/non-resident-landord-guidance-notes-for-letting-agents-and-tenants-non-resident-landlords-scheme-guidance-notes/what-the-non-resident-landlords-scheme-is#:~:text=The%20Non%2Dresident%20Landlords%20Scheme%20(%20NRLS%20),property%20on%20behalf%20of%20a%20non%2Dresident%20landlord.

As for Australia, as a permanent resident ( which appears to be your intention ) you are taxable on a world wide basis and required to submit an annual tax return. You are able to claim credit for any UK tax paid on UK source income, but note the Australian tax year runs to 30 June so a mismatch with the UK tax year.

If you are familiar with UK self assessment hopefully Australian tax compliance might not prove to challenging, but you might need some professional help in your 1st compliance year.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81954610#Comment_81954610

Definitely make sure you have bank accounts and mechanisms to allow for easy deposit and flow of funds between the UK and Australia. That might mean more internationally focused banks and exchange services like "Wise".