playbunny75

Hello

We have been in Oz for 9 months and have left money from our house sale in our UK account do we need to declare this to pay tax on it?

We will bring the money over to Oz when we find a house we would like to buy but most likey just the depsoit and leave the rest in UK if there are no problems doing so.

Grateful of any advice

JAJ

You need to declare any interest (but should be able to get a refund of UK tax).

If you make a profit/loss on the exchange rate on the money you do transfer this may be subject to the capital gains tax regime.

I'm not sure if there are other tax issues to address - someone like Alan Collett should know.


Jeremy

ABCDiamond

You should declare any interest that you receive from those funds, but also account for any UK tax you have paid.

The capital sum itself is not taxable.

Any gain that you may make via the exchange rate, when you bring it over will also be taxable.

edit: Jeremy beat me to it

FXtrader

Just a by the way, you could also open a multi currency account here in Australia, and bring all your pounds here, and convert them when required and/or the exchange is right.
Might be best to leave your UK account open though, say with a fiver in it. Leaving a larger amount of money in the UK is I'd say a bad idea, unless you will be returning after only a short time....
Many Aus banks will open one....
Cheers.

Greenhorn

supposedly u open a multi currency account in Aus, and then convert when the exchange is rite, would u still get taxed if u make on the unrealised exchange that is now realised ?

JAJ

Remember that if you close your UK bank accounts, or allow the bank to close them if they become "dormant" you may have problems getting a new bank account on your return to the UK.

Compared to Australia, UK rules on proof of identity (and more particularly, proof of address) are very unfriendly towards newcomers to the country.


Jeremy

JAJ

It would generally be liable to capital gains tax. Or income tax (potentially) if the ATO took the view you were an active currency trader.




Jeremy