Moving money in an ISA to Australia - Tax?
Oct 14th 2013, 4:10 am
#1
Just Joined
Thread Starter
Joined: Oct 2013
Posts: 3
Moving money in an ISA to Australia - Tax?
Hey guys,
I was really hoping you could help me out. I'm thinking of buying a house in Australia but to do so will need to sell my ISA in the UK.
I've been looking at using a service such as HIFX to transfer the money over. The question is will the lump sum be taxed in Australia or do I need to do any additional paperwork here. HIFX themselves didn't think so but thought I'd check.
Since the ISA is tax free in the UK and I haven't drawn from it since I arrived in Australia over 8 years ago I haven't declared it in Australia yet.
I was really hoping you could help me out. I'm thinking of buying a house in Australia but to do so will need to sell my ISA in the UK.
I've been looking at using a service such as HIFX to transfer the money over. The question is will the lump sum be taxed in Australia or do I need to do any additional paperwork here. HIFX themselves didn't think so but thought I'd check.
Since the ISA is tax free in the UK and I haven't drawn from it since I arrived in Australia over 8 years ago I haven't declared it in Australia yet.
Oct 14th 2013, 7:16 am
#2
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Re: Moving money in an ISA to Australia - Tax?
I'm sorry to inform you that ISA are not tax free in Oz and the growth of the ISA in each fiancicial year is considered income which you should have added to your tax return each year.
Transfer it and hope the Tax office don't audit you and then claim ignorance or fess up to the taxman your call.
You won't be the first to get caught out by this and you certainly won't be the last.
Transfer it and hope the Tax office don't audit you and then claim ignorance or fess up to the taxman your call.
You won't be the first to get caught out by this and you certainly won't be the last.
Oct 14th 2013, 12:55 pm
#3
Devil's Advocate
Joined: Feb 2008
Location: Mandurah
Posts: 2,269
Re: Moving money in an ISA to Australia - Tax?
I'm sorry to inform you that ISA are not tax free in Oz and the growth of the ISA in each fiancicial year is considered income which you should have added to your tax return each year.
Transfer it and hope the Tax office don't audit you and then claim ignorance or fess up to the taxman your call.
You won't be the first to get caught out by this and you certainly won't be the last.
Transfer it and hope the Tax office don't audit you and then claim ignorance or fess up to the taxman your call.
You won't be the first to get caught out by this and you certainly won't be the last.
Oct 15th 2013, 7:54 am
#5
Just Joined
Thread Starter
Joined: Oct 2013
Posts: 3
Re: Moving money in an ISA to Australia - Tax?
Thanks for all the great advice guys really appreciate it.
It's a large sum of money ($100k plus), so should I just move it and see what happens? Or do you think as it's a large sum it will be flagged so I should pre-empt with tax man. These things are so complicated, had no idea that Taxfree in the UK meant taxed here!
It's a large sum of money ($100k plus), so should I just move it and see what happens? Or do you think as it's a large sum it will be flagged so I should pre-empt with tax man. These things are so complicated, had no idea that Taxfree in the UK meant taxed here!
Oct 15th 2013, 11:01 am
#6
BE Forum Addict
Joined: Dec 2003
Location: Gold Coast Hinterland
Posts: 2,359
Re: Moving money in an ISA to Australia - Tax?
Don't forget the exchange rate - your gains must be converted to A$. It may not be too much.
Oct 20th 2013, 6:28 am
#7
Just Joined
Thread Starter
Joined: Oct 2013
Posts: 3
Re: Moving money in an ISA to Australia - Tax?
Thanks again all, I think I need some professional adviceso I can run through the options you guys have provided. Anyone know a good consultant in Sydney I could talk to? (financial, tax understand international component)
Oct 20th 2013, 7:53 am
#8
Lost in BE Cyberspace
Joined: Nov 2003
Location: Scotland
Posts: 7,949
Re: Moving money in an ISA to Australia - Tax?
Try Go Matilda - we got excellent advice and very efficient service on resolving UK/Australian tax issues. Main office is in Melbourne (and Southampton); I don't think they need to be Sydney based to email and phone them unless you want to talk face to face.
http://www.gomatilda.com/home.cfm (see Contact)
http://www.gomatilda.com/home.cfm (see Contact)
