UK’s new tax slug could force expat Aussies home

Hans van LeeuwenEurope correspondent

Updated Mar 22, 2024 – 10.58am, first published at 8.48am

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Key Points

Tax experts called the new rules a “massive change” for Australian expats.
Expats living in the UK are to lose “non-dom” tax benefits under the new rules.
Australians are to lose the benefit of negative gearing on properties back home.
They will lose franking credit benefits on any Australian shares they own.
They could be kept in the UK’s inheritance tax net 10 years after going home.

London | A British tax change looks set to deprive Australian expats in the UK of the benefit of negative gearing on their properties back in Australia, and could also keep them in Britain’s inheritance tax net for a full decade after going home.

The rules will also mean that long-term Australian residents of the UK will not get the benefit of franking credits on any Australian shares they own. And if they retire in Britain, they would pay tax on any superannuation income streams they bring across from Down Under.