If you’re an Australian expat living in the UK, you’ll no doubt be aware of the different tax and financial regulations here, and how these differ from the equivalent regulations in Australia.
Many Australian expats retain financial assets in Australia and may also be planning to return at some stage. For some, a long‑term objective is to retire there, making cross‑border considerations a cornerstone of their financial planning.
While building wealth and securing long‑term financial security in the UK, you may be doing so within a regulatory framework that is unfamiliar, while simultaneously managing potentially significant assets in another jurisdiction.
There may also be other issues, such as estate planning, that you are looking to manage, as well as ensuring you get the best possible exchange rate when transferring money between countries.
This scenario can easily lead to complex, time-consuming issues in your financial planning. There is a risk that any mistakes may have lasting consequences and leave you facing an unwelcome tax demand.
Here are some key challenges where expert advice can be a great help, providing you with valuable peace of mind as an Australian expat in the UK.
1. Planning for your retirement with pension assets in both the UK and Australia
Ensuring you enjoy the retirement you have worked hard for will always be one of your top financial priorities, regardless of where you are living.
If you have superannuation funds accrued back in Australia and are contributing to a UK arrangement, there will be some important cross-border financial planning decisions you will need to make, where expert advice can be crucial.
These are likely to include:
- Managing your retained super fund in Australia
- Maximising tax efficiency on your UK-based pension contributions
- Aligning the investment strategies of both funds
- Starting to plan your eventual retirement
- Planning to transfer your UK pension to Australia if you plan to retire back there.
By working with a financial planning company with experience in helping people plan their retirement across financial borders, you can ensure that you will have a bespoke plan tailored to suit your own circumstances and objectives.
Find out more: 6 financial planning tips if you are an Australian retiring in the UK
Transferring your UK pension to Australia
2. Managing your tax planning in two different countries
As an Australian living in the UK, you will appreciate the similarities between the UK tax system and the one you got used to at home.
That means that the UK system is manageable, but there are some key issues where getting expert cross-border advice can be invaluable.
These will include:
- Understanding how your residency status affects the taxes you are liable for
- How the UK–Australia double-tax agreement helps determine which country taxes your employment income
- The taxation of other earnings, such as dividends and capital gains
- Tax you are liable for on property income.
Our tax planning arm, bdhTax, has registered agents with offices in both the UK and Australia.
They have specialist expertise in helping people living in one country who have tax issues in another.
Find out more: Your guide to understanding the double-taxation agreement between the UK and Australia
3. Securing competitive returns on your currency exchange transactions
If you have assets in both the UK and Australia, and are transferring these between the two, you’ll be aware of the effect fluctuating exchange rates can have on the value of your money.
Just a quick look at the UK sterling-to-Australian dollar exchange rate over the last five years illustrates how volatile it can be.
Source: Google, 20 April 2026
Because of this, it makes sense to ensure you secure the best possible rate, especially if you’re transferring a substantial sum.
There is also the added issue of fluctuating rates, complicating the reporting of your losses and gains for tax purposes.
For this reason, we would always recommend that you work with currency specialists who can help you benefit from real-time exchange rates and provide access to forward contracts. This can help you secure favourable rates and mitigate currency risk.
4. Having effective legacy planning arrangements in place
Being an expat in the UK with assets in Australia makes it imperative to have robust legacy plans in place and to review them regularly.
Some common legacy planning options, such as trusts and wills, can be interpreted differently across legal jurisdictions.
You should also be aware of the different taxes that your beneficiaries will be liable for on assets they inherit from you, and factor these into your planning.
Furthermore, new legislation can affect your legacy planning, including changes to UK Inheritance Tax (IHT) announced in the October 2024 Budget. These are set to come into force in April 2027, and could result in the value of your UK-based pension being included in the value of your estate when IHT is calculated.
By getting expert advice, you can ensure you have effective cross-border estate planning arrangements in place, helping you to pass assets to your chosen beneficiaries as smoothly as possible, while potentially mitigating the tax they are liable for.
5. Ensuring you have an effective cross-border investment strategy
Regardless of where you are living and your future plans, one of your top financial planning priorities is likely to be growing your wealth through an investment portfolio.
Adopting a DIY approach to this can be time-consuming and stressful, particularly if market volatility affects your assets’ value.
Managing investment assets across borders can also add complexity, as you need to ensure you take advantage of tax-efficient investment options and address key issues such as asset allocation and your attitude to risk.
With expert advice, you can get the guidance you need to help you develop a robust investment strategy aligned with your financial objectives. A Financial Adviser can also help you review your plans regularly to ensure they remain fit for purpose and make adjustments if necessary.
Find out more: 4 important facts that can help guide your cross-border investment strategy
Why choose us?
Choosing a financial planner is a big decision, especially when your life, career, or retirement spans both the UK and Australia.
Many of our clients come to us because they want clear, trusted guidance from people who understand the realities of managing finances across two countries. We’re here to support you throughout that journey, helping you make sense of the complexities along the way.
As financial planners, we focus on what’s most important to you. We don’t try to sell financial products, but instead look to the future – towards your goals and aspirations, and how we can help you achieve them.
Many of our advisers are expats themselves, who genuinely understand the journey you may be undertaking.
If you would like to talk to an expert about your own arrangements, please get in touch with us.
Please note
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
This article is for information only, it does not take into account your personal objectives, financial situation, or needs.
Please do not solely rely on anything you have read in this article and ensure that you conduct your own research to ensure any actions you may take are suitable for your circumstances.
All contents are based on our understanding of HMRC and ATO legislation, which is subject to change.