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Take half of money, leave half of money?

Take half of money, leave half of money?

Old Jun 28th 2010, 10:49 am
  #1  
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Default Take half of money, leave half of money?

I'm not quite sure what I want to do with my money at the moment.

I think I would like to take half of it with me to Oz, and leave half of it in the UK in decent % account, as back-up money, and 'pretend' it doesn't exist, so I make sure I'm wise with my money when looking for a job and rental.

I will be staying with my rellies when I get there, and until I find somewhere to live and work, so I won't be having huge start up costs which will help.

Are there any issues with leaving some money in the UK? It's not a huge amount, but I don't want to complicate tax matters.
If the exchange rate was back to what I call normal (2.2) then I would consider taking it all, but I'd feel cheated doing it now. But the main reason, is so I have some money to fall back on if I have to return to the UK.

I'm well aware that leaving it here won't necessarily work in my favour in regards to the exchange rate, as it could plummet and stay there, but that's a risk. I would probably only leave it in the UK for about 6 months or so until I know I'm staying for good (have nothing to come back to/for anyway).
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Old Jun 28th 2010, 10:56 am
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Default Re: Take half of money, leave half of money?

We left most of ours in the UK and only transferred it as and when we needed it. Still got a very small amount over there but it's staying put for the foreseeable future. Not had any problems tax wise. I think it's a good move, especially with the current (and possibly long term) rate.
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Old Jun 28th 2010, 11:17 am
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Default Re: Take half of money, leave half of money?

Originally Posted by xzibit
I'm not quite sure what I want to do with my money at the moment.

I think I would like to take half of it with me to Oz, and leave half of it in the UK in decent % account, as back-up money, and 'pretend' it doesn't exist, so I make sure I'm wise with my money when looking for a job and rental.

I will be staying with my rellies when I get there, and until I find somewhere to live and work, so I won't be having huge start up costs which will help.

Are there any issues with leaving some money in the UK? It's not a huge amount, but I don't want to complicate tax matters.
If the exchange rate was back to what I call normal (2.2) then I would consider taking it all, but I'd feel cheated doing it now. But the main reason, is so I have some money to fall back on if I have to return to the UK.

I'm well aware that leaving it here won't necessarily work in my favour in regards to the exchange rate, as it could plummet and stay there, but that's a risk. I would probably only leave it in the UK for about 6 months or so until I know I'm staying for good (have nothing to come back to/for anyway).
We've left most of ours in the UK, for the reasons you state but no-one trully knows what will happen with rates etc. Not been here for long enough to discover the tax consequences but I was advised by an accountant to put all of the money in my wifes name, due to me being a high rate taxpayer.
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Old Jun 28th 2010, 12:04 pm
  #4  
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Default Re: Take half of money, leave half of money?

Hi you need to be aware that every person in Australia has to complete a tax return for the year ended 30th June by the end of October which asks about overseas money. Secondly you need to be aware that Australia and the UK have a reciprocal tax agreement and your money sat in a bank account is taxed (or not if you have completed the forms). Either way the taxman knows and can and will tell the Australian Tax Office so there is no point in lying! They also look at Kids accounts so be warned.

If you leave your money in the bank and wait till the exchange rates goes up and then transfer your money you will pay tax on the gain that you made. So if you had £10000 in your account on the 1st January when rate was say $1.65 (would be $16500) and you wait until 31st Dec (when rate might be $2.00 and you would get $20000) then you will be taxed on the $3500 gain at whatever your highest rate of Australian income taxation is. So you still gain.

If you have a house and are renting it it goes on the day that you sell the house but then you need to factor in being taxed on property rental income in the UK.
You really need to get some professional advice.
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