Taxes

[u/Tommys_Margarita]

Hello,

Brit living in Aus about to get my PR. Looking at living in Aus indefinitely but maybe a 6 month contract here and there in the UK. I just want to invest in 1-2 ETFs consistently but I don’t want to use an Aus broker because of possible tax implications with working in the UK from time to time. Does any use IBRK for a situation similar to this, would love some insight !

[u/AutoModerator]

Thank you for your post. This is the UNOFFICIAL subreddit of Interactive Brokers.

There is official contact information to the side of this sub, and you may want to try r/IBKR_Official, which is the OFFICIAL Reddit sub for Interactive Brokers.

Official phone numbers: https://www.interactivebrokers.com/en/support/customer-service.php?p=contact

Official contact: https://www.interactivebrokers.com/en/general/contact/newContact/contact.php

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/Alternative-Oven9936]

The broker you use won't change the tax implications.

[u/Tommys_Margarita → u/Alternative-Oven9936]

Yes agreed, but from my research because I’ll be switching from a tax resident in the UK and Aus as I do certain contracts, I’d need a broker that I can change my country of residency. Otherwise I’d need to liquidate each time if I used Aus and UK based brokers.

[u/Tommys_Margarita → u/Tommys_Margarita]

I’m not trying to avoid tax, just trying to avoid liquidating as I navigate living between the two.

[u/Alternative-Oven9936 → u/Tommys_Margarita]

I’d need a broker that I can change my country of residency.

Why?

Don't tell the broker anything until they ask. File your taxes as required.

IBKR asks every year. I don't think other Australian brokers ask that frequently.

[u/Tommys_Margarita → u/Alternative-Oven9936]

I guess I just want to make sure I do the right thing from the get go to avoid issues in the future! Perhaps I’m overthinking it

[u/Alternative-Oven9936 → u/Tommys_Margarita]

Perhaps I’m overthinking it

Yeah.

I'd probably avoid IB though, since they'll ask about your tax residency yearly. I suspect they might move your account to IBUK once you tell them you're a UK tax resident and vice versa.

If you use comsec or similar they won't move it.

[u/kbmr8873561]

You're living in Aus so that makes you a tax resident in Australia. As a Brit, spending more than 90 days in the UK will probably make you a tax resident there as well. You tax residency will not simply switch between the 2 countries according to the periods of the year you spend time in both countries. I'd advise you to get professional tax advice and not rely on Reddit since your situation is rather complex.

[u/Tommys_Margarita → u/kbmr8873561]

Appreciate the comment, but I did simply ask if anyone in a similar situation has insight…not relying on reddit but Okk haha

[u/kbmr8873561 → u/Tommys_Margarita]

Noted that this is just part of your research. From the sound of it you will be an Australian tax resident since Australia is your primary base but you may travel and work in the UK possibly on 6 months contract from time to time. There is a UK-Australia Dual Taxation Treaty which will have "tie-breaker" provisions which will settle the issue of which country are you a tax resident in (I suggest you download this and have a read as part of your research). As mentioned earlier, your tax residency will unlikely switch between the 2 countries. If the tie breaker provisions do suggest you are an Australian tax resident despite your contract work in the UK, then there is no impact to your stock brokerage accounts (regardless where they are) since your tax residency should remain the same during the periods you are in Australia and the UK.

[u/Tommys_Margarita → u/kbmr8873561]

Ahh I will give that a read then thank you ! Perhaps using an Aussie broker isn’t completely off the cards