We advise on the UK tax implications of Australian Trusts where the beneficiaries are UK tax resident. From 6 April 2017 and 6 April 2018 there were extensive changes under UK tax law that effect the UK taxation of Australian and other offshore Trusts.
Australian Trusts can become UK tax residents if the trustees become UK tax residents. Therefore, trustees should obtain UK tax advice before they become UK tax residents. If an Australian trust ceases to be Australian tax resident, Australian capital gains tax may be payable.
We also advise on the Australian tax implications of UK Trusts where the beneficiaries are Australian tax residents. Complexities arise where the beneficiary of a UK trust is an Australian tax resident. In some cases, significant Australian tax liabilities can arise on distributions from a UK trust to an Australian tax resident individual. Therefore, beneficiaries of Trusts who intend to move to Australia should obtain Australian tax advice prior to emigrating to Australia and becoming Australian tax residents.
UK Trusts can become Australian tax residents if the trustees become Australian tax residents. Therefore, trustees should obtain Australian tax advice before they become Australian tax residents.
Trusts with UK tax resident trustees can cease to be UK tax resident if the trustees cease to be UK tax residents. If a UK trust ceases to be a UK tax resident, UK capital gains tax may be payable.
Trust taxation is a complex area – therefore please contact us for specialised tax advice if you are affected by any of the above issues.