pre/post 1 July 2003 Bank Accounts
Sep 6th 2005, 7:00 pm
#1
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pre/post 1 July 2003 Bank Accounts
I 've read about the tax implications of retaining GBP in a UK account opened pre/post 1/07/2003 and there are a number of examples available to illustrate this.
However, it's not clear to me whether this also relates to indirect widrawals/transfers from such an account.
i.e. say I open a high interest account tomorrow and dump the proceeds of a house sale into it. Say I then move to Oz and a while later I consider that the exchange rate has moved in my favour and move the funds into another account which was opened before 01/07/2003 and from there transfer the funds into AUD.
What then?
Does the fact that the funds were retained in a post 01/07 account for at least some time after the move to Oz mean that the gain is taxable?
Or does the fact that there was no actual gain in the transfer from the post 01/07 account to the pre 01/07 account mean that it's not taxable?
I can't find an example to clarify this - any ideas anyone?
(Place your bets now...)
Cheers,
However, it's not clear to me whether this also relates to indirect widrawals/transfers from such an account.
i.e. say I open a high interest account tomorrow and dump the proceeds of a house sale into it. Say I then move to Oz and a while later I consider that the exchange rate has moved in my favour and move the funds into another account which was opened before 01/07/2003 and from there transfer the funds into AUD.
What then?
Does the fact that the funds were retained in a post 01/07 account for at least some time after the move to Oz mean that the gain is taxable?
Or does the fact that there was no actual gain in the transfer from the post 01/07 account to the pre 01/07 account mean that it's not taxable?
I can't find an example to clarify this - any ideas anyone?
(Place your bets now...)
Cheers,
Sep 6th 2005, 8:36 pm
#2
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Joined: Jun 2005
Location: Bristol to Darch,Perth.
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Re: pre/post 1 July 2003 Bank Accounts
Originally Posted by Mr. Ee
I 've read about the tax implications of retaining GBP in a UK account opened pre/post 1/07/2003 and there are a number of examples available to illustrate this.
However, it's not clear to me whether this also relates to indirect widrawals/transfers from such an account.
i.e. say I open a high interest account tomorrow and dump the proceeds of a house sale into it. Say I then move to Oz and a while later I consider that the exchange rate has moved in my favour and move the funds into another account which was opened before 01/07/2003 and from there transfer the funds into AUD.
What then?
Does the fact that the funds were retained in a post 01/07 account for at least some time after the move to Oz mean that the gain is taxable?
Or does the fact that there was no actual gain in the transfer from the post 01/07 account to the pre 01/07 account mean that it's not taxable?
I can't find an example to clarify this - any ideas anyone?
(Place your bets now...)
Cheers,
However, it's not clear to me whether this also relates to indirect widrawals/transfers from such an account.
i.e. say I open a high interest account tomorrow and dump the proceeds of a house sale into it. Say I then move to Oz and a while later I consider that the exchange rate has moved in my favour and move the funds into another account which was opened before 01/07/2003 and from there transfer the funds into AUD.
What then?
Does the fact that the funds were retained in a post 01/07 account for at least some time after the move to Oz mean that the gain is taxable?
Or does the fact that there was no actual gain in the transfer from the post 01/07 account to the pre 01/07 account mean that it's not taxable?
I can't find an example to clarify this - any ideas anyone?
(Place your bets now...)
Cheers,
But i will be interested in the answer when you get it 
Sep 7th 2005, 2:44 am
#3
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Posts: 34,649
Re: pre/post 1 July 2003 Bank Accounts
Originally Posted by AndyD
No But i will be interested in the answer when you get it
But i will be interested in the answer when you get it If you ask the ATO they may not even know the answer. These rules are intended for large corporations with accounts running into the millions.
Alan Collett is probably one of the few who might be able to shed some light on it.
Jeremy
Sep 7th 2005, 3:51 am
#4
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Posts: 4
Re: pre/post 1 July 2003 Bank Accounts
I have just joined the expats forum and have seen your message re having a bank account in the Uk (what happened in the pre/post time you mentioned?)
Did you find out who Collett was and did you get a reply or solution to your question. I can either start my own question and cover old ground or I can ask you what the outcome was...... so if you received an adequate reply are you prepared to share it with me?
Look forward to hearing from you....
Vicki
Did you find out who Collett was and did you get a reply or solution to your question. I can either start my own question and cover old ground or I can ask you what the outcome was...... so if you received an adequate reply are you prepared to share it with me?
Look forward to hearing from you....
Vicki
Sep 7th 2005, 5:07 am
#5
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Joined: Apr 2004
Location: Perth
Posts: 1,001
Re: pre/post 1 July 2003 Bank Accounts
Originally Posted by JAJ
If you ask the ATO they may not even know the answer. These rules are intended for large corporations with accounts running into the millions.
Alan Collett is probably one of the few who might be able to shed some light on it.
Jeremy
Alan Collett is probably one of the few who might be able to shed some light on it.
Jeremy
Sep 7th 2005, 6:12 am
#6
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Re: pre/post 1 July 2003 Bank Accounts
I understand that the profit is taxable, but it's the difference between considering the profit as taxable for Capital Gains or as taxable income.
Vicky, please see http://www.gomatilda.com/news/article.cfm?articleid=327
It's an article on Alan Collett''s website re this issue.
I tried looking at the ATO website, but reckon it's a contender for the Plain English campaign.
Still none the wiser, but thanks for your thoughts.
Vicky, please see http://www.gomatilda.com/news/article.cfm?articleid=327
It's an article on Alan Collett''s website re this issue.
I tried looking at the ATO website, but reckon it's a contender for the Plain English campaign.
Still none the wiser, but thanks for your thoughts.
Sep 7th 2005, 7:03 am
#7
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Joined: Feb 2005
Posts: 313
Re: pre/post 1 July 2003 Bank Accounts
Originally Posted by Mr. Ee
I understand that the profit is taxable, but it's the difference between considering the profit as taxable for Capital Gains or as taxable income.
Vicky, please see http://www.gomatilda.com/news/article.cfm?articleid=327
It's an article on Alan Collett''s website re this issue.
I tried looking at the ATO website, but reckon it's a contender for the Plain English campaign.
Still none the wiser, but thanks for your thoughts.
Vicky, please see http://www.gomatilda.com/news/article.cfm?articleid=327
It's an article on Alan Collett''s website re this issue.
I tried looking at the ATO website, but reckon it's a contender for the Plain English campaign.
Still none the wiser, but thanks for your thoughts.
just read this article, would be very interested, as I'm sure many others would be in the answer to this.....
Any knowledgable peeps out there, please?
Sep 7th 2005, 12:08 pm
#8
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Posts: 34,649
Re: pre/post 1 July 2003 Bank Accounts
Originally Posted by CadburysFingers
Mr. Collet may indeed have the answer, and the answer he will give you will be this one. He will say that any profit you have made on your money whatever type of account it is/has been held in, is liable to be taxed. Profits are taxable simple as that.
Capital gains tax yes.
However this thread is asking about income tax.
Jeremy
Sep 7th 2005, 10:36 pm
#9
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Re: pre/post 1 July 2003 Bank Accounts
Thank you for responding to my request about tax and bank accounts. Mr Ee my situation is similar to the one you described. However I have not paid tax (not worked) since I arrived here so don't know how that alters things. I am about to move on again, and if you'll pardon my crudeness - I am sure I am about to get screwed by the taxman. If and when I find out what I could have, should have done I'll let you and the whole world know about it as I get tired of the taxman making the most of how much money I have managed to accrue AFTER they have already had their share from my original earnings and everything I have chosen to buy with what's left.
Watch this space as I am on a mission to find out how to get round these things. Anybody know anything about Capital Gains....? when do you pay it and what's the difference between that and plain tax? What about offshore investments?
Thanks to Andy D, Moderator and Betty Boop and Cadburys fingers - I appreciate that you have all sent me whatever info you have. Thanks for the link with the article about pre and post 1/7/03 bank accounts it was very helpful.
Bye for now chat soon Vicki
Watch this space as I am on a mission to find out how to get round these things. Anybody know anything about Capital Gains....? when do you pay it and what's the difference between that and plain tax? What about offshore investments?
Thanks to Andy D, Moderator and Betty Boop and Cadburys fingers - I appreciate that you have all sent me whatever info you have. Thanks for the link with the article about pre and post 1/7/03 bank accounts it was very helpful.
Bye for now chat soon Vicki
Sep 30th 2005, 11:59 pm
#10
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Re: pre/post 1 July 2003 Bank Accounts
Mr Ee This is Vicki MooreMr Ee This is Vicki Moore - I responded to your query about tax and UK bank accounts. I am still prodding around seeing what I can find out. Did you get any more advice or ideas about tax and UK bank accounts (and lump sums? Bye for now. Vicki
Originally Posted by Mr. Ee
I 've read about the tax implications of retaining GBP in a UK account opened pre/post 1/07/2003 and there are a number of examples available to illustrate this.
However, it's not clear to me whether this also relates to indirect widrawals/transfers from such an account.
i.e. say I open a high interest account tomorrow and dump the proceeds of a house sale into it. Say I then move to Oz and a while later I consider that the exchange rate has moved in my favour and move the funds into another account which was opened before 01/07/2003 and from there transfer the funds into AUD.
What then?
Does the fact that the funds were retained in a post 01/07 account for at least some time after the move to Oz mean that the gain is taxable?
Or does the fact that there was no actual gain in the transfer from the post 01/07 account to the pre 01/07 account mean that it's not taxable?
I can't find an example to clarify this - any ideas anyone?
(Place your bets now...)
Cheers,
However, it's not clear to me whether this also relates to indirect widrawals/transfers from such an account.
i.e. say I open a high interest account tomorrow and dump the proceeds of a house sale into it. Say I then move to Oz and a while later I consider that the exchange rate has moved in my favour and move the funds into another account which was opened before 01/07/2003 and from there transfer the funds into AUD.
What then?
Does the fact that the funds were retained in a post 01/07 account for at least some time after the move to Oz mean that the gain is taxable?
Or does the fact that there was no actual gain in the transfer from the post 01/07 account to the pre 01/07 account mean that it's not taxable?
I can't find an example to clarify this - any ideas anyone?
(Place your bets now...)
Cheers,
Oct 1st 2005, 12:47 am
#11
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Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Re: pre/post 1 July 2003 Bank Accounts
I agree with JAJ on this one the area is so complicated and so few at the tax office know anything about it unless you are talking $10 of millions you are reasonably safe.
I've submited 5 tax returns now declareing what I believe to be my foreign liability and I've even submitted 2 correction when I found out I'd made a mistake and they accepted everything without question or documentation.
You will never get advise from the tax office about this because their first line of help support don't know what you are talking about. They will ask you to submit a request in writing and 6 months later you will get back 10 pages of Tax gobbledegook which will leave you no wiser. Even taking the gobblegook to the tax office to get them to explain it to you wont' help as they will find it just as incomprehsible as you ( this is from first hand experience).
My best advise is to be straight with your Oz income (which they can check very eaisly) and they will take your word for your foreign income.
SOME tax advisers play on your fear of getting it wrong to charge you a fortune to do it for you when just a dose of common sense is required.
I've submited 5 tax returns now declareing what I believe to be my foreign liability and I've even submitted 2 correction when I found out I'd made a mistake and they accepted everything without question or documentation.
You will never get advise from the tax office about this because their first line of help support don't know what you are talking about. They will ask you to submit a request in writing and 6 months later you will get back 10 pages of Tax gobbledegook which will leave you no wiser. Even taking the gobblegook to the tax office to get them to explain it to you wont' help as they will find it just as incomprehsible as you ( this is from first hand experience).
My best advise is to be straight with your Oz income (which they can check very eaisly) and they will take your word for your foreign income.
SOME tax advisers play on your fear of getting it wrong to charge you a fortune to do it for you when just a dose of common sense is required.
Oct 2nd 2005, 7:35 am
#12
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Location: Sutherland - til we find a house with a nice kitchen! Oh, even better - found one with a nice pool.
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Re: pre/post 1 July 2003 Bank Accounts
As (in Oz) there's no CGT exemption limit but there is an Income tax exemption limit (AUD 6,000) it seems better for us to transfer as much of my half of the house sale proceeds into my wife's name as UK tax-efficiently possible as she doesn't intend to work in Oz.
If she then opens a new, sole, high interest account in the UK any interest / gain earned would be classed as her income rather than capital gains 'cos it's a new account.
If she then opens a new, sole, high interest account in the UK any interest / gain earned would be classed as her income rather than capital gains 'cos it's a new account.
