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HMRC internal manual

Double Taxation Relief Manual

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HM Revenue & Customs
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Double Taxation Relief Manual: Guidance by country: Australia: Dual residents

The new Agreement with Australia applies from 6th April 2004 for UK income tax and 1st April for corporation tax and from 1st July 2004 for Australian taxes. It contains tie-breakers so that dual residents are no longer an issue.

Under the previous Agreement, Article 18 provided that a person who is resident in the United Kingdom for the purposes of United Kingdom domestic law and is also a resident of Australia for the purposes of Australian domestic law shall:

  1. if he is an Australian resident (see Article 3(2) and (3), be exempt from United Kingdom tax on any income arising from sources outside the United Kingdom, provided that he is subject to tax on the income in Australia;
  2. if he is a United Kingdom resident (see Article 3(2) and (3), be exempt from Australian tax on any income arising from sources outside Australia, provided he is subject to tax on the income in the United Kingdom.