canaveral

Does anyone know the tax implementations for transferring my money from England into a sterling account in Australia?
I left my money in England 5 years ago when I first came to Oz. The exchange rate was $2.50 back then but I never move my money because I never thought that I would stay here.
If I moved my money here at 1.60 and the exchange rate moved to 2.20 would I have to pay tax on the exchange rate difference?

Wol

Yes.

Bermudashorts

Just curious, is there any particular reason you want your money in Australia in a sterling account?

freebo

Are you sure? What about if left in a UK account, as I'm of the impression that you don't.

spalen

I have some US currency in a US$ account here in Australia (with hsbc) - I looked around and theirs was most flexible

Theoretically I guess it would be a capital gain and you should declare it but thats only if you chose to on your tax return. I cant see how the bank would site it as a gain they only report interest payable .

When you move to australia - any assets you have are automatically revalued for tax purposes at their value when you arrive and become a resident for tax purposes (which is immediately in most cases). That means - if you dont realise them in UK - and reliase them in aus - any gain you made in the uk that was taxable inUK - wont be taxed.

There are a few exceptions - on stock options there is something called a "trailing tax liability" where you have to pay tax in UK on the gain pro-rata'd against the time you held the stock in th eUK - that caught me out.

Kiwipaul

NO

Providing the money is still in a Sterling account (dosn't matter where the account is) you are not taxed on the changeing exchange rate.

BUT when you convert your sterling to dollars which creates a CG event you then become liable for any gain you make.

HOWEVER if you say the exchange rate was $2.50 origionally when you came then you will be making a tax deductable loss on any you convert UNLESS the exchange rate goes back above $2.50 (and pigs might fly).

brendarover

Have a read.

http://britishexpats.com/forum/showt...=653881&page=2

Varying opinions, but?