biggy

Hi there does anybody know the guidelines and timelines for bringing money from the UK into Oz???

YFitz

Am bumping this for you as I am interested in this too. Our house sale has just fallen through and it now seems highly unlikely we'll sell before we go to Aus in early January. I THINK any money brought in within 6 months of becoming resident is tax free but not sure what happens after that Have done some searches to find out what will happen if our house doesn't sell within those first 6 months but can't find anything....... well, anything that I can undestand

Yv

biggy

I canny find bugger all either

soapy©

im sure i read a thread on this a long time ago biggy, try doing a search.
oh and i cant rmbr the answer to the thread either lol

biggy

lmao cheers Soapy....how u gettin on these days...u missin Scotland yet?

soapy©

well now that u mention it..........NO !!!!!!!
not on your life, i just love this place, but we need some time to rest. we do too much on our days off. and we are off for a wee holiday already. port douglas then the gold coast for 3 days each....its a hard life eh

biggy

Lucky you we have bought a plot of land so no holibags fir us for a while......but lovin it here on the beach so canny complain

kirsty&al

Only pension transfers have the 6 months limit. Everything else can be subject to tax. It is complicated but the basic principle is that all your assets are nominally converted to $s when you arrive to stay permanently (this does not include validation visits). If the value of the asset increases by the time you take it (or the money made from it) into Oz then you can get taxed on the increase in value. If you make a loss then you can use this as a tax offset. There is a lower limit ($10,000 - I think) below which the ATO are not interested.

Other things to watch out for on the tax front:
- Endowment policies and other term-life policies. If you and your associates (i.e. family) have more than $50,000 worth then the ATO will be interested in any gain, even though they are tax free in the UK.
- ISAs, PEPS and other UK tax dodges ...erm... tax efficient schemes.
- Pensions
- Premium Bonds. You will have to share your good fortune with the ATO.
- Money left in the UK worth more than $250,000.
- The IR can still hit you for Inheritance Tax for up to 3 complete UK tax years after you leave (so nearly 4 years if you leave on the 7th April).

Ultimately, unlike the UK, Oz does not like tax avoidance as well as tax evasion.

At the end of the day, if you end up paying tax, then you have made some money somewhere and you will be better off; unfortunately you will have to share some of your good fortune with the ATO.

All the best.
Alistair

worzel

Try the front of the GoMatilda site as I think there are FAQ's and a tax forum on there

Jimbo9

If you were to transfer funds from the UK to Oz after migrating, is it your Oz bank who informs the ATO?

Just out of curiousity of course

Jim

kirsty&al

Austrac

Bix

You will be taxed on the increase in asset value.
Not in GBP but in AUD so the exchange rate plays a part.

Couple of examples using your arrival in Jan and your transfer of house sale proceeds in June

Jan house worth GBP100k x 2.40 = AUD 240k
June sells for GBP 100k x 2.60 = AUD 260k
Taxable gain AUD 20k

Jan GBP 100k x 2.40 = AUD 240k
June GBP 90k x 2.60 = AUD 234k
Loss AUD 6k (offset against future capital gains I think?)

So, it is not just the GBP value that counts but also the exchange rate.
You could lose both ways - you could gain both ways.

When you come to sell get as high a valuation as possible put on the sales flyer and keep a copy as proof the house was worth that much.
You can always reduce the price again very soon.
The higher that valuation the less risk of being taxed on gains due to x-rate movements.

biggy

Thanks for the replies...I think it is a bit clearer now lol

Alan Collett

Note that you may be able to make use of the CGT exemption in Australia that applies to a property which has been a main residence and that has been used for income generating purposes for up to 6 years ... so long as there is no other dwelling in Australia that is owned and is occupied as a main residence. The property that is the subject of the exemption need not be in Australia.

Potentially a very valuable exemption ...

Best regards.

steve99

Does this apply to cash in the same way as your example on a property?
If so say I had GBP 50k in Aug02 when the rate was about 2.8 = AUD 140K
and I moved it over a few weeks back at 2.4 and only got AUD 120K is there something I can gain from this $20K difference?