bridiej

I know it's been asked before but I have never understood completely.

The exchange rate is pretty grim at the mo. We complete on our house sale this Friday so should have circa £100K to transfer to AU$.

If we were to put this in a high interest account then wait until the rate got a bit better (obviously I am aware it may not) what are the tax implications?

I need an explanation that an amoeba could understand please...!

lacey21

EH!

your question thew me lol lol

lace x

manxfamily

Im no expert but if your money is sitting in your account and gaining interest then your bank will issue you with a certificate of interest earning at the end of the tax year. This has to be put in with your annual return. I dont think you will earn enough on a bank account to give you a large tax bill.

Your payment from the Australian News for your exclusive, however, will probably cost you!! Are they paying you a 6 figure sum!!!!

moneypenny20

You do need to move it over within six months though otherwise you will be clobbered aus tax wise.

bridiej

Of course!! Just had Playboy on the phone, they want be to do a centrefold :scared:

bridiej

Thanks moneypen, might give us some breathing space, will have to see. Rate gone up a cent since I checked this morning so fingers crossed.....

manxfamily

Whos paying who? !!

TracyAnne

From what I understand the 6 month rule only applies to pensions. You will be taxed on any exchange rate gain(or loss) on transfers of money made after you arrive in Oz. I have learnt this from this site so if I am wrong please someone correct me.

Tracy

Bed Of Roses

No your not wrong, gain and you pay tax even if it is invested here global earnings etc.

Mr. Ee

For individuals, is there an annual capital gains tax exemption limit in Oz, like there is in the UK?

Alan Collett

Nope ...

Best regards.

Alan Collett

1. Any increase in its A$ value will probably be assessable.

2. Any decrease in its A$ value will probably be deductible.

3. 1 and 2 are measured with reference to the A$ value of your GBP's on the date you become a tax resident of Australia.

4. There are exemptions available which mean you can disregard the above. For example, if the total of your GBP balances are less than the equivalent of A$250,000 and you prepare the relevant election (note - you can't net debit and credit balances - ie a mortgage of GBP100,000 and an in hand bank balance of GBP20,000 equals GBP120,000, not GBP80,000).

5. For the more detailed stuff, see http://www.gomatilda.com/news/article.cfm?articleid=327

6. And for some free tax factsheets: http://www.collettandco.com/factsheet.cfm

Hope this helps.

fraser

But your money will earn more interest in a bank here.

cranni

We had all our money transferred to HIFX , they got us 2.55, which was great , we opened an account with bank west the day we got here, and the money was here 4 days later, it was lovely, not much left now though, im sorry but i want my money in the same country as i am in, good luck darling see u soon. Denise

Flying Banana

Just had my tax return done so went through this with an accountant. You're not liable for any CGT on the proceeds of a sale of property if it is your primary residence, ie you lived in it and it's not an investment property. There is no 6 month limit on when you transfer it as with pensions. I had to declare any interest earned on the UK account since becoming a UK resident but am not paying UK tax on it so no great loss.

As regards hoping for exchange rate improvement vs savings over here will depend on interest. Ie on £50k sat in the UK a 10c improvement on exchange rate will make around $6000 difference this end. This is roughly the same as getting 5% interest on it. So if you leave it in a decent interest account in the UK and wait for the exchange rate to improve (hopefully) then you'd gain a bit more. Swings and roundabouts really as you could lose as well if the rate drops and depends on if you need the money immediately or not.