Firegod

Hi I was going to leave some of my money in the UK and wait for a better exchange rate in the future. But are there any tax implications on transfering money to Australia in the future? is there a time limit on transfers? I don't want to risk getting taxed on capitol that is left in the UK.

Any Ideas??

TrickyTree

Hi Firegod

There are tax implications on transferring money to Oz in the future if the rate improves. I think you have 6 months to get your funds over to Oz but if you leave it after 6 months and the rate improves you get taxed on the profit you have made.

Hope that makes sense or someone can put it into better English or if certain parts are wrong they will correct me.

TT

helenmaine

That's the same advice that I got from my financial advisor. 6 months until the gain is taxed.

Quinkana

HSBC (Aust): Foreign Currency Deposit Rates

Which ever way you do it, after 6 months residence, you will be Taxed.

To reduce compliance costs taxpayers can elect to disregard foreign currency gains or losses on certain foreign currency bank accounts with balances of no more than A$250,000

Check this yourself.

kirsty&al

Hello,

Unfortunately you don't get 6 months. Any transfer greater than $10,000 is subject to CGT if you make a gain on it by transferring at a rate higher than the day you arrived. You can claim a loss if the rate is lower.

You will not get taxed on the captital if you leave it sitting in the UK. You will get taxed on any interest earned.

Regards
Alistair

Firegod

Thanks All. I've done some more research since my 1st post and the concensus seems to be there is no time limit just getting taxed on any rise after you arrive in Aus.

On a seperate note does anyone have any idea why the exchange rate is falling so fast, is this due to the Aus elections? If Howard wins again might it rally higher and conversly if labour win is it more likely to fall? any experts on here with an opinion on the subject most welcome.

Alan Collett

Not correct I'm afraid ... ask him or her where it says that in the tax legislation ... the only 6 month "window" pertains to transfers of pension funds (and similar transactions re pension funds).

Best regards.

gordys

Forgive my ignorance:

If I have £100K and leave it with my commonwealth account in the UK and only transfer it when the X-Change rate reaches X (lets say 30 days after arriving in Aus), am I liable for CGT in either country?

sjn2003

You are liable to tax in Aus on the fx gain from the date you become a tax resident to the date you remit the cash. You can elect to waive all fx gains/losses on overseas funds less than $250k though. May be worth doing if you are convinced there will be a gain ! You have to make the election though - its not automatic.

Hope this helps

gordys

Cheers, appreciate the help.