Inheritance in the UK, tax liability in Australia
Sep 16th 2009, 1:53 pm
#1
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Inheritance in the UK, tax liability in Australia
I have received a small inheritance in the UK. I won't be bringing it over just yet as the exchange rate is poo! Does anyone know if I have any tax liability in Australia while it remains in a UK bank and any liability when I eventually bring it over? Any advice appreciated. Thanks.
Sep 16th 2009, 6:17 pm
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Re: Inheritance in the UK, tax liability in Australia
I have received a small inheritance in the UK. I won't be bringing it over just yet as the exchange rate is poo! Does anyone know if I have any tax liability in Australia while it remains in a UK bank and any liability when I eventually bring it over? Any advice appreciated. Thanks.
A friend of mine recently inherited a large sum of money. He has not declared it and has not been asked to either. As that friend is now not working (retirement age) he has no intention of declaring it. Time will tell if he gets away with it.
Do whatever you feel comfortable with.
Barney
Sep 16th 2009, 6:23 pm
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Re: Inheritance in the UK, tax liability in Australia
The inheritance itself is not taxable on the recipient, but any interest arising on the capital sum will be, regardless of where in the world the money is if you are a permanent resident.
Sep 16th 2009, 9:57 pm
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Re: Inheritance in the UK, tax liability in Australia
Sep 16th 2009, 10:37 pm
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Re: Inheritance in the UK, tax liability in Australia
On your Oz tax return, you will need to state interest received on overseas bank accounts etc and the tax which as been deducted by the country where the money is invested (if any).
So with us, the Abbey National would not accept the Inland Revenue (IR)forms saying that we don't have to pay tax on our savings - insted they wanted us to open Abbey offshore accounts, we did not want the hassle so left the money there. Therefore the IR take their cut of our interest in the UK then we declare the interest plus the IR on our Oz tax return..under the 'double taxation rules' the net interest from the UK is not taxed again in Oz.
There are parts on the tax form though that require you to state gains on currency conversions etc, but really I would not worry too much.
So with us, the Abbey National would not accept the Inland Revenue (IR)forms saying that we don't have to pay tax on our savings - insted they wanted us to open Abbey offshore accounts, we did not want the hassle so left the money there. Therefore the IR take their cut of our interest in the UK then we declare the interest plus the IR on our Oz tax return..under the 'double taxation rules' the net interest from the UK is not taxed again in Oz.
There are parts on the tax form though that require you to state gains on currency conversions etc, but really I would not worry too much.
Sep 16th 2009, 10:54 pm
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Re: Inheritance in the UK, tax liability in Australia
I have received a small inheritance in the UK. I won't be bringing it over just yet as the exchange rate is poo! Does anyone know if I have any tax liability in Australia while it remains in a UK bank and any liability when I eventually bring it over? Any advice appreciated. Thanks.
Q: I'm about to inherit a large amount of money. Do I have to pay tax?
A:
A:
- If you inherit money you don't have to pay tax on it.
- In fact, you don't even need to declare it on your tax return.
- Tax must be paid if that money is invested and you earn income from it.
