At bdhSterling, we specialise in helping people with the financial side of moving between the UK and Australia, whether you’re heading Down Under or returning to the UK.
Once you have completed your migration, we can then help you manage your personal finances to ensure you grow your wealth and secure a comfortable financial future.
From a geographic point of view, it helps that we are ideally placed to do this with offices just outside London in the UK, and in three major Australian cities – Melbourne, Perth, and Sydney.
However, it’s more than just about geography and physical presence.
Most advisers in the UK do not have “passporting” rights in Australia, so they are restricted from advising Australian residents.
bdhSterling has dual-registration, which means that we are authorised to provide financial advice in both the UK and Australia.
Read on to find out why this gives our clients peace of mind that they’re getting joined-up, compliant advice, no matter which side of the world they’re on.
As an expat, your financial plans are likely to be complicated
If you consider the key components of an effective long-term financial plan, these four areas usually stand out:
- Planning for your retirement – and then drawing a tax-efficient income from your accrued wealth.
- Saving and investing your money wisely.
- Managing the amount of tax you are liable for – across both the UK and Australia.
- Estate planning – putting together an effective estate plan to pass your wealth on to your loved ones as tax-efficiently as possible.
And that’s just the start. You might also be thinking about protecting your income, covering school fees, or budgeting for private healthcare. Many of these can be governed by detailed (and sometimes complicated) legislation.
Now, layer in the complexity of having assets in two different countries, each with its own tax rules, pension systems, and investment regulations, and it’s easy to see why working with a financial adviser who understands both the UK and Australian systems is so important.
Too many cooks…
Of course, you may decide to work with a different advice firm in the two countries: one to manage your assets in Australia, and the other to look after your UK-based financial interests.
There’s nothing intrinsically wrong with having two advisers, but it can create complications.
For example, if you are a UK expat in Australia, your UK interests could include:
- Residential property you rent out
- Investments in ISAs and a general investment account
- Retained pension funds
- Your estate planning arrangements.
Decisions you or one of your advisers take on any of those issues in isolation, rather than as part of an overarching, holistic strategy, could affect your long-term plans.
For instance, at some stage, you may want to sell your UK property. How you use the assets from the sale – invest the money, clear debt, or pass it to your children, for example – will surely depend on your overall worldwide financial circumstances.
There is no guarantee that a solely UK-based adviser would have the necessary insight into your overall financial plans to provide the right advice and recommendations.
Furthermore, with two different advisers, a lot of the responsibility to ensure synergy between the way your financial plans are managed in different countries may well fall on your shoulders.
3 examples where a single dual-registered adviser can be advantageous
Given the complexity of financial planning, there are many areas in which having one source of advice can be very beneficial.
Here are three examples.
1. Investing your money
Perhaps the most important component of your financial plan is growing your wealth in order to secure the retirement you have worked hard for.
At the heart of this is your investment portfolio, which is effectively the engine that drives your plan.
Because of this, it’s important to have an overarching view of your investments in both the UK and Australia to ensure that they align with your attitude to risk and overall financial goals.
Failing to have this may result in changes in one jurisdiction affecting the overall balance of your portfolio, meaning that your investment holdings and strategy are not aligned with your long-term plans.
2. Protecting your legacy for your beneficiaries
By providing you with effective cross-border advice, an advice firm with dual registration can help you structure your assets to maximise tax efficiency for your intended beneficiaries.
For example, Australia does not charge Inheritance Tax (IHT) on your estate, unlike the UK where the standard IHT rate is 40%. This means that the correct distribution of your assets could help your family avoid a substantial tax bill from HMRC in the UK when you pass on.
An expert adviser can also help with other aspects of your legacy planning, such as the best use of wills and trusts in both the UK and Australia.
3. The amount of tax you are liable for
There are some key taxation issues that you need to be aware of and plan for if you have assets in both the UK and Australia and, in particular, if you are moving between the two.
The talented team at our sister company, bdhTax, have a detailed understanding of the tax implications of moving between and managing assets in both countries with two different tax jurisdictions.
They can help you make the most of the Double Taxation Agreement (DTA) between Australia and the UK, which ensures you aren’t taxed twice on the same income.
Get in touch
Finding a new adviser every time you move, and having to re-explain your entire financial situation can be frustrating. With bdhSterling, you get continuity, clarity, and confidence from a team that understands both sides of your financial world.
If you are a British expat in Australia, or planning a move in either direction, and would like to discuss your financial plans, please get in touch with us.
Please note
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.
The value of your investments (and any income from them) 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.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
All contents are based on our understanding of HMRC and ATO legislation, which is subject to change.