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Re: Exchange Rate and Tax Implications
Originally Posted by stuckinblighty
(Post 5863771)
Just read this thread several times and i'm still none the bloody wiser :confused:
AM I LIABLE FOR TAX IN EITHER AUS OR THE UK ON MY HOUSE SALE FUND ?? dont suppose i'll get a definative answer :blink: Lee :confused: |
Re: Exchange Rate and Tax Implications
There is no tax liability on your exchange rate gain where you leave funds in the UK and convert when the rate improves.
In £ terms you haven't made a capital gain so you are not liable for uk tax and by using a currency provider who will have their own foreign currency bank accounts you pay in the uk and they convert and pay out to you in AUD in oz so realistically you only converted your asset on the day at spot which would not be seen as a gain either. I have already checked this with transfermate.com and if anyone needs confirmation Im sure they can confirm |
Re: Exchange Rate and Tax Implications
Not correct - UK£ in the hands of a tax resident of Australia is a CGT Asset, and is therefore subject to CGT or the forex rules (as appropriate) should there be a disposal and an appreciation in A$ terms.
Best regards. |
Re: Exchange Rate and Tax Implications
ATO returns depend to a large extent on an honesty system. Your trouble would start if you declared a capital gain in your tax return.
If you didn't declare it and the ATO got back to you and said "what about this foreign exchange transaction you made?" (very unlikely), you could claim ignorance. No doubt someone can point to the ATO website and say "it IS a capital gain, look here...", but going on what's already been said here, if there's so much ambiguity about this issue your claim of ignorance would be justified, IMO. Just how I would approach it anyway. I don't think you'd go to jail. Big. |
Re: Exchange Rate and Tax Implications
There is no ambiguity. Non A$ currency is a CGT Asset in the hands of an Australian tax resident, and tax consequences flow from this.
Whether you choose to complete your Tax Return correctly is your call of course ... Best regards. |
Re: Exchange Rate and Tax Implications
Originally Posted by Alan Collett
(Post 5867629)
There is no ambiguity. Non A$ currency is a CGT Asset in the hands of an Australian tax resident, and tax consequences flow from this.
Whether you choose to complete your Tax Return correctly is your call of course ... Best regards. Yes, I was speaking entirely from a personal point of view. And, ahem, hypothetically at that. |
Re: Exchange Rate and Tax Implications
Bump:D
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Re: Exchange Rate and Tax Implications
There really is no point in bumping this thread. The subject usually results in arguments, as you know from reading previous other threads on the subject, because there is no definitve answer.
As Alan Collett said an an earlier post. If you want a definite answer from this forum on this issue I think you are likely to be waiting a long time ... engage a tax professional, be prepared to part with some money, and get an opinion in writing. You can then seek recompense if the ATO differs with that opinion. |
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