Taxation of Trusts

UK Trusts

At Nexia Australia, our experts can provide advice 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, Australian tax liabilities can arise on distributions from a UK Trust to an Australian tax resident individual.

UK Trusts can become Australian tax residents if the trustees become Australian tax residents. To ensure the best possible outcomes and avoid unforeseen challenges, it’s essential that beneficiaries of Trusts who intend to move to Australia obtain Australian tax advice prior to relocating to Australia and becoming Australian tax residents.

Trusts with UK tax resident trustees can cease to be UK tax residents if the trustees are no longer UK tax residents. If a UK Trust ceases to be a UK tax resident, UK capital gains (CGT) tax may be payable.

We offer a tailored approach and provide experienced Australian tax advice for moving to Australia. Our team can also offer insights for other Trust like structures, such as a Donation Partage in France or a Liechtenstein Foundation.

The Australian tax law significantly taxes distributions to Australian tax residents and Trust beneficiaries. As Australian tax planning opportunities arise before relocation to Australia, so seeking professional advice before relocating is key to continuing to navigate towards your goals.

Australian Trusts

Our team of experienced advisers provides in-depth advice on the UK tax implications of Australian Trusts whose beneficiaries are United Kingdom (UK) tax residents.

With the expected removal of the UK’s remittance basis of taxation from 6 April 2025, UK tax residents with Australian trusts should take tax advice on these structures immediately.

In recent times there have considerable changes under UK tax law that affected the UK taxation of Australian and other offshore Trusts.

Australian Trusts can become UK tax residents if the trustees become UK tax residents. It’s essential that trustees obtain UK tax advice before becoming UK tax residents. If an Australian Trust ceases to be an Australian tax resident, Australian capital gains tax (CGT) may be payable.

As an Australian Trust is unlikely to be tax efficient for a UK tax resident beneficiary in the long term, there are other structuring options that should be explored and considered.