eyeperfetical question
 

Mate of mine is renting his house in the UK and his tenants have approached him about buying it. at current market prices he stands to make around 100 grand profit english, plus he's got an endowment policy (not attached to the mortgage, just left for years) coming out next year, designed to payout 47.500 25 years ago (no idea what it'll actually be worth). Now then, he's planning on slashing his mortgage in Oz with this dosh, but has no idea how to legally transfer the cash over without some bastard taking a wedge

Like I said it's all conjecture at the mo as he hasn't sold yet, but any financial whizzkids in here able to offer advice would be very much appreciated...................my mate said:)

Re: eyeperfetical question
 

How long has your mate been in Australia? Unless he's only moved recently then there will be no UK capital gains tax to worry about.

As he owns a property in Aus, he will likely have to pay Aus tax on the capital gain, based on the change in Aus$ value between when he became tax resident and when it is sold.

Not sure there is a legal way to avoid paying any tax.

Re: eyeperfetical question
 

How can the ATO possibly know there is a Capital Gain unless you tell them ? The money could be from an inheritance, family money gifted to you etc.etc. Tell them no lies, but don't offer them any information unless they ask. They take enough of you hard earned without waving a red flag to have them take even more.

Re: eyeperfetical question
 

Taxpayers have a legal obligation to pay tax on their taxable income, including assessable capital gains. The OP's mate was asking whether there was a legal way of bringing the money across without paying tax - there isn't if the gain is assessable.

Of course as they want to keep things legal the mate will have been declaring the rental income, and the ATO may wonder why it suddenly stopped.

Re: eyeperfetical question
 

I'm pretty sure once you sign off your tax return you've told them lies!

Re: eyeperfetical question
 

I knew an expat that had an issue with an endowment as AU do not accept that tax has already been paid on the premiums and tax the lump sum in full. I think he said it would be 40'ish percent.

He was going to put the funds into a UK bank account and use a UK credit card to pay bills and buy stuff and then pay the monthly CC statement direct from the UK account.

Can't tell you if it worked as he moved away from here.

Re: eyeperfetical question
 

But they do ask, they ask a series of questions in the self assessment form which should be answered truthfully or it is a criminal offence.

There are two ways it can be detected as well, the first is that the rental income stops, so what happened? The second is that banks report large cash transactions in from overseas.

I am not sure why although most people accept that it is necessary to pay income tax there are so many that don't want to pay capital gains tax. The income being taxed was probably more hard earned than the capital gains tax, which is largely a result of passive good fortune. We are taxed on increases in our wealth, it is what pays for services and assistance to the less fortunate, might as well get used to it.

Re: eyeperfetical question
 

FWIW there's also much closer co-operation between HMRC and ATO and HMRC are having a real purge on ex-pats and income earned overseas, even if unremitted.

I'm not sure if the opposite holds true and ATO is now more likely to find out about unremitted earnings/gains in the UK but you would think if they are sharing information more it is. The moral for good citizens and those who want to sleep easily is their bed is to own up before you are caught and the possibility of fines and interest as well as tax due arises. ;)

Re: eyeperfetical question
 

I'm a bit pissed at the mo. wWill read properly ikn the morning thanks all for your replies:)

Re: eyeperfetical question
 

You're probably not as drink as you thunk you are :p

I must have read the original post incorrectly (not unknown for me). I thought the OP was referring to fees for transferring the money, not tax.

Re: eyeperfetical question
 

cheers guys, I know I'm gonna have to pay tax (bastards) and would be fully prepared to do a Doddy lol, there is a part of me that really begrudges the double dipping scumbags. Been here 5 1/2 years to answer one question

It's mainly transfer fees etc, I get the feeling I couldn't just transfer it from my UK account. TBH having cash like that is totally alien to me, I'm half decent at earning the stuff but looking after it is firmly the wifes domain. Does anyone have any ballpark figures for fees/tax, just to give me an idea of what I might have to kiss goodbye.

You may have worked out now that the first post was mostly bullshit, as I haven't got any mates:)

Re: eyeperfetical question
 

If you use a specialist currency broker such as Moneycorp (there are others too), their fees are a few pounds. Doing it through your bank will probably cost more in fees and you'll get a worse rate.

The bigger fees will be on the transfer from your UK bank to the broker, as the amount if money will be too big for a normal BACS payment. For the house sale, it might be worth getting your solicitor to send it direct to your account with the broker, rather than getting charged 50GBP or so for the transfer to your bank and again for the transfer to the currency broker.