itxrd

Well said Xzibit. Thats exactly what I'm doing and seems the logical thing to do. As far as I know re time limit some say its 6 months (although this could be heresay) but you don't really need to adhere to it. Just transfer over < $10k each time. Anymore and the receiving bank has to let the tax office know. So e.g for $100k make 11 transfers of $9k. They cannot monitor every little payment that goes through and I work in banking. Thats what I'll be doing anyway. And millions of people do it too. Lets hope we don't get the usual drama queens on here telling you its 'illegal' 'immoral' blah blah blah ;-)

xzibit

Yes I imagine I will do it that way, or get someone to transfer it in some method to avoid paying tax on it. I won't be telling anyone in Australia about my money left in the UK either, and I may even put it into my Mother's account in the UK, then technically I won't have any money in my name.

There's ways and means, I pay enough damn tax, and the exchange rate means I'm losing quite a bit, so like hell will I pay it to send my money across and lose even more.

freebo

I'm no fan of taxation and structure my buisness accordingly but I'd want to tread carefully with plans like the above. I'll be taking professional advice before committing to any course of action, in general I am in favor of moving my money in stages though, for the reasons you outline.

xzibit

I don't think they will worry with the amount of money I will be moving lol

I'm not rich, only have what I've saved since leaving school 9 years ago, and not very well. But I still want to maximise what I get at the other end.

itxrd

Here here. Down with the taxman!!!

charlie5

The 6 month limit that people often quote is ONLY for bringing over superannuaton funds.

In theory any other capital gain on foreign exchange should be declared and hence taxed!!!

There have been a number of threads on this topic.

Charlie

koalakim

I think you are okay on tax if the money is from the sale of your principle place of residence - so you'd have to prove it i.e. letter of sale from solicitor. However, if you move it over and make a gain on the forex then you'd probably have to pay tax on it.

For instance when we became tax resident the forex rate was 2.48 (oh those heady days.....) but we've brought our house funds over at 1.80 so no forex gain but if you we waited until it goes up to 3.00 () then you will be liable for a forex CGT.

But you'd still have to pay tax on the interest whilst it's still sitting in your bank account in the UK (interest, what interest!) but then you will have paid UK tax and this is set against your Aussie tax as the UK/Aus have a dual taxation agreement in place.

If you are talking about a lot of money then best to seek financial advice.

Hino

I have to say that moving the amounts over in $9,999 increments to 'fool' the taxman was a cunning ploy and might have some merit

Swerv-o

Hi KoalaKim,

Have you not made a Forex loss in your case, which you could use to offset any tax liabilities that you have already got in Australia - Income tax for example?


S

bcworld

I'm not sure about income tax, but maybe it can be used to offset a future capital gain.

koalakim

Yes, there is something we can do but I'm not sure what it is! A friend did explain but it was very complicated and I thought I'd leave it until we talk to the accountant for the next tax return!

MrCro

look forward to hearing what happens there KK, been so much talk of this tax on exchange rate 'profits' but I have spent hours reading through threads and still never found anyone saying they had paid this tax????

PS: I just got back from week in Egypt on holiday and OMG 1.66!!!!!!!!!!!!!!

Centurion

Look on the brightside. It dropped to 1.64

MrCro

I was too busy with my head stuck down an Egyptian bog for 3 days to worry about forex last week!

Like your new photo Centurion!

Centurion

Why thank you. It amused me. I lived in Egypt briefly. After a while I think your stomach just gives up but it takes at least a dozen bouts of food poisoning sadly.