exchange rates and tax???
Oct 14th 2003, 6:42 pm
#16
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
There are lots of interesting comments in these postings!
You can transfer your capital to Australia without a tax charge - BUT if you retain UK£'s (for example) and the value in A$ terms is more when you transfer it than its value on the date you become tax resident you will have realised a capital gain which is assessable in Australia, with a 50% discount applying to the gain if the "disposal" of non-A$ currency held on arrival in Australia takes place more than 12 months after that date.
A "disposal" of foreign currency (foreign meaning so far as Australia is concerned) can also take place when you settle a UK debt using UK£'s (when settling a UK credit card bill for example), or if you transfer your UK£'s from one spouse or partner to the other.
Best regards.
You can transfer your capital to Australia without a tax charge - BUT if you retain UK£'s (for example) and the value in A$ terms is more when you transfer it than its value on the date you become tax resident you will have realised a capital gain which is assessable in Australia, with a 50% discount applying to the gain if the "disposal" of non-A$ currency held on arrival in Australia takes place more than 12 months after that date.
A "disposal" of foreign currency (foreign meaning so far as Australia is concerned) can also take place when you settle a UK debt using UK£'s (when settling a UK credit card bill for example), or if you transfer your UK£'s from one spouse or partner to the other.
Best regards.
Oct 15th 2003, 6:10 am
#17
BE Enthusiast
Joined: May 2003
Location: Renting in Port Kennedy Perth
Posts: 447
Sorry Alan
Did not follow that at all - can you explain it again! Sorry to be a complete dim-wit!!!!
We are looking to keep our house & rent it out - we will be bringing in some capital & keeping some in the UK until we decide that we are settled & will then transfer most to Oz & probably sell the house.
Did not follow that at all - can you explain it again! Sorry to be a complete dim-wit!!!!
We are looking to keep our house & rent it out - we will be bringing in some capital & keeping some in the UK until we decide that we are settled & will then transfer most to Oz & probably sell the house.
Oct 15th 2003, 7:50 am
#18
Happy Daddy
Joined: Aug 2003
Location: Dodgey West Midlands , UK
Posts: 1,312
Hi pockygoes,
I think this is accountant teritory. The answer will be good because I wonna do the same as you, but keep the house in the UK for quite a while.
I know that in the UK you don't pay CGT on a property you live in, so could you get around this by moving back to the UK when you sell the house, therefor it's your home, - no CGT.
Bye
Markeh
I think this is accountant teritory. The answer will be good because I wonna do the same as you, but keep the house in the UK for quite a while.
I know that in the UK you don't pay CGT on a property you live in, so could you get around this by moving back to the UK when you sell the house, therefor it's your home, - no CGT.
Bye
Markeh
Oct 15th 2003, 11:18 am
#19
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
You have more than one tax issue to consider here:
- your tax exposure if you retain and let a property in the UK when you move to Australia (Income Tax and CGT in the UK and Australia, plus Inheritance Tax in the UK), and
- your tax exposure if you retain UK£'s when you move to Australia
To be open with you, and if you are unclear having investigated the many postings I have made before on these subjects on this forum, please take some professional advice so you can make informed decisions.
If you would like a fee proposal from me please send me an email.
Best regards.
- your tax exposure if you retain and let a property in the UK when you move to Australia (Income Tax and CGT in the UK and Australia, plus Inheritance Tax in the UK), and
- your tax exposure if you retain UK£'s when you move to Australia
To be open with you, and if you are unclear having investigated the many postings I have made before on these subjects on this forum, please take some professional advice so you can make informed decisions.
If you would like a fee proposal from me please send me an email.
Best regards.
Originally posted by pockygoes
Sorry Alan
Did not follow that at all - can you explain it again! Sorry to be a complete dim-wit!!!!
We are looking to keep our house & rent it out - we will be bringing in some capital & keeping some in the UK until we decide that we are settled & will then transfer most to Oz & probably sell the house.
Sorry Alan
Did not follow that at all - can you explain it again! Sorry to be a complete dim-wit!!!!
We are looking to keep our house & rent it out - we will be bringing in some capital & keeping some in the UK until we decide that we are settled & will then transfer most to Oz & probably sell the house.
Oct 15th 2003, 11:21 am
#20
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Originally posted by markeh
<snip>
I know that in the UK you don't pay CGT on a property you live in, so could you get around this by moving back to the UK when you sell the house, therefor it's your home, - no CGT.
Bye
Markeh
<snip>
I know that in the UK you don't pay CGT on a property you live in, so could you get around this by moving back to the UK when you sell the house, therefor it's your home, - no CGT.
Bye
Markeh
Best regards.
