changing cash from £ to $
Jan 6th 2004, 4:56 pm
#32
Forum Regular
Joined: Dec 2003
Posts: 94
Re: Sterling Vs Dollar?
Originally posted by floordekor
I noticed from some of your posts that there are seasonal fluctuations in the exchange rates, is this only for the last year or does it tend to have highs and lows at certain times of the year.
The reason I ask is that I hope to change all of our money in May, June 2004, but if this was a bad time to exchange I would try to hold off and change only what we need until we can get a better rate.
I'm sure if you're anything like me the daily exchange rate from sterling to dollar is not doing anything for the old moral.
Recently I found a web site <www.xe.com> if you register with them they will send you daily exchange rates via email and they also offer an excange rate service which I think may be very good, need to check it out though?
Does anyone reckon we going to see the pound worth $2.80 again ???
Paul
I noticed from some of your posts that there are seasonal fluctuations in the exchange rates, is this only for the last year or does it tend to have highs and lows at certain times of the year.
The reason I ask is that I hope to change all of our money in May, June 2004, but if this was a bad time to exchange I would try to hold off and change only what we need until we can get a better rate.
I'm sure if you're anything like me the daily exchange rate from sterling to dollar is not doing anything for the old moral.
Recently I found a web site <www.xe.com> if you register with them they will send you daily exchange rates via email and they also offer an excange rate service which I think may be very good, need to check it out though?
Does anyone reckon we going to see the pound worth $2.80 again ???
Paul
Watch the tax changes on cash, cash is an asset and if you hold money offshore Australia - the question is why? To get an increase in value over and above that when you became tax resident? ATO subjects that to tax assessment.
The tax position depends on when you sourced the funds and you could if its cash get tax relief on the "loss" since you acquired the funds. You can do something similar with pensions
Geraint
www.miplc.co.uk
Jan 6th 2004, 5:25 pm
#33
Irish Member
Joined: Jan 2004
Location: Belfast, now in Sydney!!!
Posts: 27
Re: Sterling Vs Dollar?
Originally posted by gld
Call 01753 859159 and you have Halewood. They are excellent of FX trading and they are regarded very highly in the analysing of the rates.
Watch the tax changes on cash, cash is an asset and if you hold money offshore Australia - the question is why? To get an increase in value over and above that when you became tax resident? ATO subjects that to tax assessment.
The tax position depends on when you sourced the funds and you could if its cash get tax relief on the "loss" since you acquired the funds. You can do something similar with pensions
Geraint
www.miplc.co.uk
Call 01753 859159 and you have Halewood. They are excellent of FX trading and they are regarded very highly in the analysing of the rates.
Watch the tax changes on cash, cash is an asset and if you hold money offshore Australia - the question is why? To get an increase in value over and above that when you became tax resident? ATO subjects that to tax assessment.
The tax position depends on when you sourced the funds and you could if its cash get tax relief on the "loss" since you acquired the funds. You can do something similar with pensions
Geraint
www.miplc.co.uk
So are you saying that for example, I were to sell up my property now and free up £100,00, worth approx $236,700. I then hold on for say 8 months and the dollar decresases in value and i cash in on my fund and get $250,000, would I then be accountable to tax on $13,300?
If this is so is it possilble to have your cash in the bank etc, then when the rates favour an exchange of sterling for dollar, could you purchase a high value item and the sell it very soon after for the same value or a little more, obviously just a cash moving exercise! But if you had invoices to prove it then you would have "acquired the funds" at the right time so as to incurr no tax penalties.
Thanks for bringing this issue up geraint
Paul.
Jan 6th 2004, 5:55 pm
#34
Forum Regular
Joined: Dec 2003
Posts: 94
Re: Sterling Vs Dollar?
Originally posted by floordekor
So are you saying that for example, I were to sell up my property now and free up £100,00, worth approx $236,700. I then hold on for say 8 months and the dollar decresases in value and i cash in on my fund and get $250,000, would I then be accountable to tax on $13,300?
If this is so is it possilble to have your cash in the bank etc, then when the rates favour an exchange of sterling for dollar, could you purchase a high value item and the sell it very soon after for the same value or a little more, obviously just a cash moving exercise! But if you had invoices to prove it then you would have "acquired the funds" at the right time so as to incurr no tax penalties.
Thanks for bringing this issue up geraint
Paul.
So are you saying that for example, I were to sell up my property now and free up £100,00, worth approx $236,700. I then hold on for say 8 months and the dollar decresases in value and i cash in on my fund and get $250,000, would I then be accountable to tax on $13,300?
If this is so is it possilble to have your cash in the bank etc, then when the rates favour an exchange of sterling for dollar, could you purchase a high value item and the sell it very soon after for the same value or a little more, obviously just a cash moving exercise! But if you had invoices to prove it then you would have "acquired the funds" at the right time so as to incurr no tax penalties.
Thanks for bringing this issue up geraint
Paul.
You still appear to have a gain and if so it is assessable though there are a few tax planning ideas floating on this.
Your situation as stated would not work on the invoice system as described.
The transaction you appear to be referring to would audit trail back, etc..
I think also the transactions you refer to would be £ to £.
You are best to formulate a strategy including even keeping your house and renting - better yields where you are? I don't know. Maybe even work the Australian negative gearing concept and get tax breaks - it does work depends on circumstances. Date when you bought property is key. Tax ain't everything its what is right for you.
Cheers
Geraint
Jan 7th 2004, 12:32 am
#35
BE Enthusiast
Joined: Jul 2003
Location: Westleigh, Sydney
Posts: 554
The ATO realise and understand the issues surrounding liquidation of assets and their transfer to Oz. As long as you are seen to be transferring you assets over in a timely manner (6-12 months) after your arrival in Oz, you will not be expected to declare any gain on your tax return for these funds.
This goes for pensions too. The ATO realise that a transfer can take up to 18 months and will normally miss the 6 month window, but as longs as you can show that the transfer process is underway, there isn’t anything to worry about.
If you intend to transfer the money over within 6-12 months, why would anyone consider investing the proceeds from a house sale in anything other than cash? 5 years is supposed to be the minimum time for a stock market linked investment, and anyone that offers advice to the contrary should be treated with suspicion. The initial commission and spread of bid/offer price on the purchase and the liquidation alone would make such an idea very unappealing.
Sell, your house. Stick the money in a high interest cash account (perhaps a fixed term treasury account). Transfer it over and declare the appropriate portion on interest on you UK/Oz tax return based on the date that you become resident in Oz for tax purposes. If you monitor the exchange rates closely, you may be able to take advantage of some short term volatility, but don’t bet on it. A lot of people get paid a lot of money to try and do this, and a lot of them still fail.
If you intend to retire in OZ and still have a reasonable time until your retirement (over 15 years?), I would write to each of your UK pension providers and request an overseas transfer to your Oz Super fund. I would do this regardless of the type of pension (personal, final salary, defined contribution, executive etc). Do this yourself. Its your money to do with as you see fit. Take ownership of it and don't delegate it to someone else to do. You will have much more visibility and control over it in an Oz Super fund, and take some satisfaction in having done it yourself.
Only my opinion, you understand.
This goes for pensions too. The ATO realise that a transfer can take up to 18 months and will normally miss the 6 month window, but as longs as you can show that the transfer process is underway, there isn’t anything to worry about.
If you intend to transfer the money over within 6-12 months, why would anyone consider investing the proceeds from a house sale in anything other than cash? 5 years is supposed to be the minimum time for a stock market linked investment, and anyone that offers advice to the contrary should be treated with suspicion. The initial commission and spread of bid/offer price on the purchase and the liquidation alone would make such an idea very unappealing.
Sell, your house. Stick the money in a high interest cash account (perhaps a fixed term treasury account). Transfer it over and declare the appropriate portion on interest on you UK/Oz tax return based on the date that you become resident in Oz for tax purposes. If you monitor the exchange rates closely, you may be able to take advantage of some short term volatility, but don’t bet on it. A lot of people get paid a lot of money to try and do this, and a lot of them still fail.
If you intend to retire in OZ and still have a reasonable time until your retirement (over 15 years?), I would write to each of your UK pension providers and request an overseas transfer to your Oz Super fund. I would do this regardless of the type of pension (personal, final salary, defined contribution, executive etc). Do this yourself. Its your money to do with as you see fit. Take ownership of it and don't delegate it to someone else to do. You will have much more visibility and control over it in an Oz Super fund, and take some satisfaction in having done it yourself.
Only my opinion, you understand.
Last edited by dracupg; Jan 7th 2004 at 1:04 am.
Jan 7th 2004, 12:34 am
#36
Guest
Posts: n/a
Re: Sterling Vs Dollar?
Originally posted by cookies
The beers are on you then!
The beers are on you then!
Jan 7th 2004, 7:12 am
#37
Forum Regular
Joined: Dec 2003
Posts: 94
dracupg
This is interesting.
If you have anything in writing which confirms that they are flexible as regards their interpretation and application of the law, I would very much appreciate being able to talk further. It is very different to what we have heard. If advice is to be given it must be right.
Anything that shows they are giving this interpretation could mean one should delay any pension transfer and examine other options such as converting a UK pension into one holding cash and then purchasing A$ if the rate moves again (backing up your comment on cash) - Why rush a transfer if A$ exchange low especially if they are indeed allowing flexibility? Hence why its important to know where this flexibility is coming from - watch the hidden costs on transfer though - they can be significant.
Its self assessment as you may know in Australia, and therefore how this leniency is applied is pivotal? I have had a situation where a tax official didn't know the legislation existed and then told us there was no tax (when there was, which was later confirmed). So they are getting it wrong.
As to interpretation there are statements made in the Senate Pension Transfer Enquiry (I will email you the reference if you want) - and statements are a matter of public record. Here is an extract.
Senator Sherry when questionning the Director, Superannuation, Australian Taxation Office on pension transfers ..said you could have massive non-compliance in this area" Senator Watson then immediately said "There is". Thats not me speaking by the way!
The Assistant Director said when questionned on flexibility of interpretation of whether tax was due "Essentially the law is the law and there is no flexibility built into the law".
The six month window is not a problem if you are planned - it is a problem if you don't know what you are doing. I asked the ATO this and the question was posed at a meeting I had with the tax chiefs on Super in Melbourne (we were looking for guidance as to interpretation) what if someone said they did not know about the legislation or said that they weren't sure if they were staying or not - the response from came back from one of them as follows if he was auding a taxpayer "You would say that wouldn't you, you would say that"
As regards the advice, I have to because of our regulator make known who we are. Our position is horses for courses and the advice must fit the individuals circumstances, for example not all pensions should be moved to Australia. Any advice may fit one situation, it may not fit all.
Cheers
This is interesting.
If you have anything in writing which confirms that they are flexible as regards their interpretation and application of the law, I would very much appreciate being able to talk further. It is very different to what we have heard. If advice is to be given it must be right.
Anything that shows they are giving this interpretation could mean one should delay any pension transfer and examine other options such as converting a UK pension into one holding cash and then purchasing A$ if the rate moves again (backing up your comment on cash) - Why rush a transfer if A$ exchange low especially if they are indeed allowing flexibility? Hence why its important to know where this flexibility is coming from - watch the hidden costs on transfer though - they can be significant.
Its self assessment as you may know in Australia, and therefore how this leniency is applied is pivotal? I have had a situation where a tax official didn't know the legislation existed and then told us there was no tax (when there was, which was later confirmed). So they are getting it wrong.
As to interpretation there are statements made in the Senate Pension Transfer Enquiry (I will email you the reference if you want) - and statements are a matter of public record. Here is an extract.
Senator Sherry when questionning the Director, Superannuation, Australian Taxation Office on pension transfers ..said you could have massive non-compliance in this area" Senator Watson then immediately said "There is". Thats not me speaking by the way!
The Assistant Director said when questionned on flexibility of interpretation of whether tax was due "Essentially the law is the law and there is no flexibility built into the law".
The six month window is not a problem if you are planned - it is a problem if you don't know what you are doing. I asked the ATO this and the question was posed at a meeting I had with the tax chiefs on Super in Melbourne (we were looking for guidance as to interpretation) what if someone said they did not know about the legislation or said that they weren't sure if they were staying or not - the response from came back from one of them as follows if he was auding a taxpayer "You would say that wouldn't you, you would say that"
As regards the advice, I have to because of our regulator make known who we are. Our position is horses for courses and the advice must fit the individuals circumstances, for example not all pensions should be moved to Australia. Any advice may fit one situation, it may not fit all.
Cheers
Jan 7th 2004, 7:25 am
#38
Forum Regular
Joined: Dec 2003
Posts: 94
Re: Sterling Vs Dollar?
Originally posted by ABCDiamond
I've just decided to leave the Premium Bonds where they are,
I just won £50 in the January Draw
I've just decided to leave the Premium Bonds where they are,
I just won £50 in the January Draw
They are taxed in Australia - Section 26AJ - The Treasurer has had a win also he may get half depends on your tax band.
Jan 7th 2004, 8:15 am
#39
Guest
Posts: n/a
Re: Sterling Vs Dollar?
Originally posted by gld
I don't know if you are going to like this but the Treasurer is just celebrating and Centrelink like them as well.
They are taxed in Australia - Section 26AJ - The Treasurer has had a win also he may get half depends on your tax band.
I don't know if you are going to like this but the Treasurer is just celebrating and Centrelink like them as well.
They are taxed in Australia - Section 26AJ - The Treasurer has had a win also he may get half depends on your tax band.
I don't get Centrelink benefits either, so their celebration is as short lived as any box of celebration chocolates that gets near me
Jan 7th 2004, 8:19 am
#40
Forum Regular
Joined: Dec 2003
Posts: 94
Re: Sterling Vs Dollar?
Originally posted by ABCDiamond
ATO don't get a penny, I am below the threshold
I don't get Centrelink benefits either, so their celebration is as short lived as any box of celebration chocolates that gets near me
ATO don't get a penny, I am below the threshold
I don't get Centrelink benefits either, so their celebration is as short lived as any box of celebration chocolates that gets near me
Jan 7th 2004, 8:22 am
#41
Guest
Posts: n/a
Re: Sterling Vs Dollar?
Originally posted by gld
Well planned - now if you happen to have a big win then it may be chocolates all round
Well planned - now if you happen to have a big win then it may be chocolates all round
Jan 7th 2004, 9:36 am
#42
Banned
Joined: Dec 2003
Posts: 150
Originally posted by dracupg
The ATO realise and understand the issues surrounding liquidation of assets and their transfer to Oz. As long as you are seen to be transferring you assets over in a timely manner (6-12 months) after your arrival in Oz, you will not be expected to declare any gain on your tax return for these funds.
This goes for pensions too. The ATO realise that a transfer can take up to 18 months and will normally miss the 6 month window, but as longs as you can show that the transfer process is underway, there isn’t anything to worry about.
If you intend to transfer the money over within 6-12 months, why would anyone consider investing the proceeds from a house sale in anything other than cash? 5 years is supposed to be the minimum time for a stock market linked investment, and anyone that offers advice to the contrary should be treated with suspicion. The initial commission and spread of bid/offer price on the purchase and the liquidation alone would make such an idea very unappealing.
Sell, your house. Stick the money in a high interest cash account (perhaps a fixed term treasury account). Transfer it over and declare the appropriate portion on interest on you UK/Oz tax return based on the date that you become resident in Oz for tax purposes. If you monitor the exchange rates closely, you may be able to take advantage of some short term volatility, but don’t bet on it. A lot of people get paid a lot of money to try and do this, and a lot of them still fail.
If you intend to retire in OZ and still have a reasonable time until your retirement (over 15 years?), I would write to each of your UK pension providers and request an overseas transfer to your Oz Super fund. I would do this regardless of the type of pension (personal, final salary, defined contribution, executive etc). Do this yourself. Its your money to do with as you see fit. Take ownership of it and don't delegate it to someone else to do. You will have much more visibility and control over it in an Oz Super fund, and take some satisfaction in having done it yourself.
Only my opinion, you understand.
The ATO realise and understand the issues surrounding liquidation of assets and their transfer to Oz. As long as you are seen to be transferring you assets over in a timely manner (6-12 months) after your arrival in Oz, you will not be expected to declare any gain on your tax return for these funds.
This goes for pensions too. The ATO realise that a transfer can take up to 18 months and will normally miss the 6 month window, but as longs as you can show that the transfer process is underway, there isn’t anything to worry about.
If you intend to transfer the money over within 6-12 months, why would anyone consider investing the proceeds from a house sale in anything other than cash? 5 years is supposed to be the minimum time for a stock market linked investment, and anyone that offers advice to the contrary should be treated with suspicion. The initial commission and spread of bid/offer price on the purchase and the liquidation alone would make such an idea very unappealing.
Sell, your house. Stick the money in a high interest cash account (perhaps a fixed term treasury account). Transfer it over and declare the appropriate portion on interest on you UK/Oz tax return based on the date that you become resident in Oz for tax purposes. If you monitor the exchange rates closely, you may be able to take advantage of some short term volatility, but don’t bet on it. A lot of people get paid a lot of money to try and do this, and a lot of them still fail.
If you intend to retire in OZ and still have a reasonable time until your retirement (over 15 years?), I would write to each of your UK pension providers and request an overseas transfer to your Oz Super fund. I would do this regardless of the type of pension (personal, final salary, defined contribution, executive etc). Do this yourself. Its your money to do with as you see fit. Take ownership of it and don't delegate it to someone else to do. You will have much more visibility and control over it in an Oz Super fund, and take some satisfaction in having done it yourself.
Only my opinion, you understand.
Regards
Jan 7th 2004, 9:43 am
#43
Forum Regular
Joined: Dec 2003
Posts: 94
Re: Sterling Vs Dollar?
Originally posted by ABCDiamond
If I win the Million, i will be a UK resident again on THAT day !! No way am I paying 50% of that to the ATO !! That would be about $1,100,000 in tax ?
If I win the Million, i will be a UK resident again on THAT day !! No way am I paying 50% of that to the ATO !! That would be about $1,100,000 in tax ?
Jan 7th 2004, 9:50 am
#44
Forum Regular
Joined: Dec 2003
Posts: 94
Originally posted by jumbo
The ATO told me that a transferred pension had to arrive within 6 months of residency and the fact that transfer proceedings had been started but missed that deadline would not count.
Regards
The ATO told me that a transferred pension had to arrive within 6 months of residency and the fact that transfer proceedings had been started but missed that deadline would not count.
Regards
Cheers
Jan 7th 2004, 10:01 am
#45
Dutch expat/Aus citizen
Joined: Apr 2003
Location: South East, Perth (was Holland)
Posts: 5,789
Help!
I'm terrible with nearly everything financial.
Apparently the exchange rate is also good for the euro.
Everybody says to exchange now (that I get
)
But how?
We've got money in a savingsaccount. We'll be looking at exchanging about 5000 euro's. Have to keep enough there for shipping etc
My dad says to exchange money into cash dollars, put it in a sock and take it to Oz like that. ? I'm not sure how smart that is? Financially I mean, not security, I'm not really worried about (yes we are wierd)
So what to do?
Sorry, I am totally ignorant about this stuff!
I'm terrible with nearly everything financial.
Apparently the exchange rate is also good for the euro.
Everybody says to exchange now (that I get
)But how?
We've got money in a savingsaccount. We'll be looking at exchanging about 5000 euro's. Have to keep enough there for shipping etc
My dad says to exchange money into cash dollars, put it in a sock and take it to Oz like that. ? I'm not sure how smart that is? Financially I mean, not security, I'm not really worried about (yes we are wierd)
So what to do?
Sorry, I am totally ignorant about this stuff!