redmini

I'm about to exchange the money from my house sale for Aussie Dollars. The money has been sitting in our bank account in the UK. We have been here for 4 months and will probably buy a house very soon. I have still been paying UK tax on the money in England (could not settle at first and thought we might return to UK). When I declare it to the Aussie tax office will they still tax me on it even though I have been paying the tax in the UK? Thanks

Fardell

Yes, given that you are now resident in Australia you are taxed on your world wide income. However, you will get a credit in your Australian tax return for tax paid in the UK - so, no "doubling up".

Wildandcrazy0525

In addition to what Fardell said, you can also speak to either the bank in the UK or the Inland Revenue and get a form that means that you don't ay the tax on the interest earned cause you live abroard. Why go through the hassle of having to claim the tax back when you can just have it untaxed in the first place

There are 2 forms that can be filled out either a P85 or a P105 depending on the situation more info can be found at the following. http://www.hmrc.gov.uk/cnr/r_and_d.htm

Graham

Nicstids

One thing you may need to look at is whether you will have made a foreign exchange gain. See thread below
http://britishexpats.com/forum/showt...ght=forex+gain

4 months ago the exchange rate was about 2.3 whereas it's now nearly 2.5 so I would have thought that you might be liable to tax on the gain. Maybe worth getting expert advice?

BTW I'm jealous - we've been here 4 months and moved all our money across at 2.3!