MartinLuther

If you're coming as a PR (PMV?) then any income you make on property will be subject to tax both in the UK and Aus (although you don't get taxed twice). If as you say your daughter will be covering all costs and hence your income is zero then there is no tax to pay to either country.*

When it comes to selling. The UK effectively gives you 3 years plus a tax free amount (or nothing to pay if you stay away for 5 tax years). Aus gives you 6 years as long as you don't buy another property. If you buy another property then you will need to get the UK one valued as you could be liable to gains from that point. If you sell the UK house and move the money within 12 months then it's all treated as one transaction and you're not liable for any gain made between the sale and the exchange of money. If you move the money after 12 months then you could be liable.

Whatever you do, get a private ruling from the ATO. It's easy - it's just a form that you fill in. You can also ask for a ruling in advance if that will help you decide what is the best course of action.

* Note: Aus actually allows you to claim rental losses against non-rental income. Something the UK doesn't allow. It's worth bearing in mind as you may spend money on the place (that your daughter quite reasonable wouldn't cover) which may be an allowable expense. If so, then this can be used to reduce your Aus tax bill.

JAJ

When you sell the house, you may have to pay capital gains tax (subject to the exemption for main residence, which may or may not apply). You may make a profit or a loss. The profit may be taxed, any loss could in some circumstances be offset against other profits.

Other than that, it's all been discussed many, many times already.

fremantle

Thanks for the replies to my question - much appreciated.

MrCro

So, if one was lucky enough to have a large amount of £'s and waited say 6-12 months after arriving in order to get a better rate and ended up with $100 extra than when they arrived in Oz........

(achievable when you look at high movements like 2.6 in Oct vs 2.09 today)

........then what tax would you have to pay on that? (bearing in mind 12 months CGT 50% discount?


Also I have a Barclays account which was opened when I was still at school in the early 80's but when I rang to check when it was opened they gave me a date in the late 80's so I missed the 1986 deadline!!!!

They said this is because once you hit 18 they change your account to an adult account!!! So that will cost me CGT now!

But.................if when I leave I do a power of attorny to an aunties account pre dating 1986 and her account is used to transfer money to ukforex with me as the benficiary in Australia would that be OK to beat the CGT trap????

MrCro

$100k that is!

simonking

There has been much discussion and confusion on this forum of tax on GBP to AUD cash transfers. A lot of this is misinformation and as JAJ says based on legislation mainly applicable to companies and forex traders.

The Australian Tax Office say that no tax is due on cash transfer “gains” or claimable against “losses” as long as it is your personal cash. If in Australia and waiting to make the transfer you would of course be due for interest on the capital.

So, do be careful and check with the tax office yourself and don’t pay unnecessary tax, because it would seem that anyone choosing to pay tax on such transfers does so voluntarily.

Regards

MartinLuther

I think you need to read this before saying JAJ is right.
http://britishexpats.com/forum/showt...AJ#post5396098

The ATO said the opposite on my personal ruling. You may find the personal cash bit exempts people changing money for holidays or business trips.

There is so much complication in this area that even many accounts don't know for sure what the rules are. The only way to be sure is to get a personal ruling. Preferably before you make the transfer.

simonking

I think you have proved my point!

I was advised that the last thing to do on this issue is to get a personal tax ruling (as you did) because you are stuck with it if you get someone preparing it who is not fully conversant with how things are applied in practice - which applies to many ATO personnel.

Regards

MrCro

anyone out there had a favourable tax ruling on this who can cut and paste it as a post?

or someone in Oz who can get a personal ruling on this (preferably someone who has no £'s left in UK to bring over as then not have to abide by the ruling!)

brendarover

Good thread, interesting post, thanks.

lisaroo

maybe a wild card? but what about ping pongers? as we already have tax file numbers, and will be returning to oz with a substantial amount of money but as its from our business will have already been taxed here in the uk! somewhat 40%.

brendarover

I agree, something mentioned before, you arrive in Oz 01/09 at 2:1, spend say a year there, go home for a month or two, go back to Oz 02/10 /04/10 at 3:1 change your money over this time? When do you become a resident the first time or the second time of arrival, murky waters?

BeachBassist

what happens if you leave your money overseas and just withdraw from ATM's?