Investments outside of OZ and CGT
Jan 5th 2007, 4:42 pm
#1
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Joined: Jul 2006
Posts: 4
Investments outside of OZ and CGT
Folks, If you could shed some light on the following it would be much appreciated:
OK, so we have sold our house in anticipation of moving to OZ (PR visa all sorted). We will only be purchasing a house a year (or two) down the line to allow us to get a feel for where we want to live.
In the mean time, some money will be sitting in a UK bank account accruing interest. Will CGT be payable on this interest, or will I be able to claim that this account is effectively my "Primary Residence" in transit and not pay CGT on it?
So a year or so down the line I suddenly bring a bit of money into Australia. When completing my tax returns (and I will be classed as resident) do I need to prove to ATO what my capital gain was (if so how), or do they just trust me? (for eg I bring in 10500GBP, but state that tax is only payable on the 500GBP, assuming the original amount sitting in the bank at the time I step into OZ was 10K)
I am also considering putting some of our money into an off plan eastern European property, this will (I hope) grow in value and possibly attract rental income if I keep it for long enough. When is CGT payable on this, when I sell it? once again does ATO just take my word for it or do they need proof (if so what). Would rental income be treated as standard income, and thus just be added to my pool of taxable income - if so what needs to be detailed as proof through to ATO?
Thanks for your help on this.
Cheers - Matthew.
OK, so we have sold our house in anticipation of moving to OZ (PR visa all sorted). We will only be purchasing a house a year (or two) down the line to allow us to get a feel for where we want to live.
In the mean time, some money will be sitting in a UK bank account accruing interest. Will CGT be payable on this interest, or will I be able to claim that this account is effectively my "Primary Residence" in transit and not pay CGT on it?
So a year or so down the line I suddenly bring a bit of money into Australia. When completing my tax returns (and I will be classed as resident) do I need to prove to ATO what my capital gain was (if so how), or do they just trust me? (for eg I bring in 10500GBP, but state that tax is only payable on the 500GBP, assuming the original amount sitting in the bank at the time I step into OZ was 10K)
I am also considering putting some of our money into an off plan eastern European property, this will (I hope) grow in value and possibly attract rental income if I keep it for long enough. When is CGT payable on this, when I sell it? once again does ATO just take my word for it or do they need proof (if so what). Would rental income be treated as standard income, and thus just be added to my pool of taxable income - if so what needs to be detailed as proof through to ATO?
Thanks for your help on this.
Cheers - Matthew.
Jan 5th 2007, 7:45 pm
#2
BE Enthusiast
Joined: Oct 2006
Posts: 312
Re: Investments outside of OZ and CGT
Folks, If you could shed some light on the following it would be much appreciated:
OK, so we have sold our house in anticipation of moving to OZ (PR visa all sorted). We will only be purchasing a house a year (or two) down the line to allow us to get a feel for where we want to live.
In the mean time, some money will be sitting in a UK bank account accruing interest. Will CGT be payable on this interest, or will I be able to claim that this account is effectively my "Primary Residence" in transit and not pay CGT on it?
So a year or so down the line I suddenly bring a bit of money into Australia. When completing my tax returns (and I will be classed as resident) do I need to prove to ATO what my capital gain was (if so how), or do they just trust me? (for eg I bring in 10500GBP, but state that tax is only payable on the 500GBP, assuming the original amount sitting in the bank at the time I step into OZ was 10K)
I am also considering putting some of our money into an off plan eastern European property, this will (I hope) grow in value and possibly attract rental income if I keep it for long enough. When is CGT payable on this, when I sell it? once again does ATO just take my word for it or do they need proof (if so what). Would rental income be treated as standard income, and thus just be added to my pool of taxable income - if so what needs to be detailed as proof through to ATO?
Thanks for your help on this.
Cheers - Matthew.
OK, so we have sold our house in anticipation of moving to OZ (PR visa all sorted). We will only be purchasing a house a year (or two) down the line to allow us to get a feel for where we want to live.
In the mean time, some money will be sitting in a UK bank account accruing interest. Will CGT be payable on this interest, or will I be able to claim that this account is effectively my "Primary Residence" in transit and not pay CGT on it?
So a year or so down the line I suddenly bring a bit of money into Australia. When completing my tax returns (and I will be classed as resident) do I need to prove to ATO what my capital gain was (if so how), or do they just trust me? (for eg I bring in 10500GBP, but state that tax is only payable on the 500GBP, assuming the original amount sitting in the bank at the time I step into OZ was 10K)
I am also considering putting some of our money into an off plan eastern European property, this will (I hope) grow in value and possibly attract rental income if I keep it for long enough. When is CGT payable on this, when I sell it? once again does ATO just take my word for it or do they need proof (if so what). Would rental income be treated as standard income, and thus just be added to my pool of taxable income - if so what needs to be detailed as proof through to ATO?
Thanks for your help on this.
Cheers - Matthew.
Any cash invested while you are a UK resident in an account, wherever it is, is income taxed, not CGT. Interest income on a UK account would be taxed at source ie by the bank, before you get it, as now, even though it might be the proceeds of a property sale. The capital proceeds from the sale of the UK primary residence are not taxed.
Jan 6th 2007, 5:43 am
#3
has lost The Game
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Investments outside of OZ and CGT
Any cash invested while you are a UK resident in an account, wherever it is, is income taxed, not CGT. Interest income on a UK account would be taxed at source ie by the bank, before you get it, as now, even though it might be the proceeds of a property sale. The capital proceeds from the sale of the UK primary residence are not taxed.
You can either have the UK bank tax it at source, then you gain a credit from the ATO at tax time, or you can have the UK bank pay your interest gross and then you just declare the whole lot to the ATO at tax time.
I think the second method is probably easier.
S
