flip

I know adults' wins are taxed when you move to Australia but what about the kids?

Does anyone know if they have any advantage as my kids have some put away but we'll invest elsewhere if they're going to lose out to tax.

Thanks

Carolyn

kirsty&al

Hello,

They will get taxed as Premium Bonds are treated as investments. I'm not 100% sure on this but I reckon they will also be liable for the 66% tax rates they use for kids to stop their parents using them as a tax dodge. From memory this rate applies to all earning not made by gainful employment after the tax free threshold for children of $772.

Regards
Alistair

flip

Knew I could rely on you.

Thanks Alistair.

Carolyn

gajjitt

What about the Child Trust Funds just introduced in the UK. What if you move to Australia, what about the tax on these?

Paul

Anastasia Beaverhausen

Good question, anyone have an answer?

I was thinking of signing my lads over to my parents (if thats possible) but it will still be in his name, so possibly elligible for tax, not quite sure how it works.

kirsty&al

Unfortunately these have come in after I left, so I'm sure what they are. Does anyone have a link so I can take a peek?

Regards
Alistair

ABCDiamond

ANY Overseas Income that the Australian Tax Office deems to be taxable, will be taxed.

Premium Bonds placed in a UK residents name, AND at a UK address will not be "noticed" by the Australian Tax Office.

If the winner of a prize is displayed on the NSI website, as having an Australian address, it will no doubt be looked into by the ATO

flip

Thanks

I wasn't trying to defraud anyone. I just wondered whether kids were exempt from the tax laws in the same way they are over here.

Carolyn

kirsty&al

Hello,

I just had a quick look on the internet and I get the impression that these are a bit like ISAs for kids (but with a fixed end date). My guess (note guess) would be that these will be treated by the ATO in the same way as ISAs (for adults) and stakeholder pensions for kids. That is, they will come under the FIF regulations which means that if the total value of FIFs (Foreign Investment Funds and Foreign Life Policies) for the family is more than $50k then you can be taxed on the increase in the fund every year. If less then you get taxed when the fund pays out (regardless of them being tax free in the UK).

Sorry for the bad news - Oz has not cottoned onto the benefits of tax free savings yet, but hopefully they will one day.

Regards
Alistair