UK and Australian trust tax implications

• Residence status is key to considering the complex tax issues that can arise when dealing with trusts.
• Australian resident and temporary resident status.
• The trustee’s status and the importance of central management and control.
• The application of the UK/Australia double taxation agreement.
• The Australian taxation of UK trust income distributed to Australian tax resident beneficiaries.
• UK tax implications of the trust ceasing UK tax residence.
• UK or Australian double tax relief may mitigate double taxation.

Australia and the UK retain a strong relationship despite more than two centuries having passed since colonisation and today more than one million UK expats live in Australia. Although many British families are still moving there the tax implications of migration for families with UK trusts is not well known among professional tax advisers on either side of the globe. Disastrous Australian tax implications can arise for UK trusts if there are Australian tax resident beneficiaries...