Tax when moving money
Nov 26th 2010, 2:43 pm
#1
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Tax when moving money
Is this correct. http://www.britzinoz.com/page.php?100
You don't shift your money from UK to Oz at point of move because the FX rate is no good. If it becomes good then you shift it and pay tax on the FX shift?
What about any interest aquired - you pay tax to the UK taxman on that. Do you have to pay the Oz taxman too?
You don't shift your money from UK to Oz at point of move because the FX rate is no good. If it becomes good then you shift it and pay tax on the FX shift?
What about any interest aquired - you pay tax to the UK taxman on that. Do you have to pay the Oz taxman too?
Nov 26th 2010, 2:44 pm
#2
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Thread Starter
Joined: Jul 2010
Posts: 26
Re: Tax when moving money
Link not linking but it reads
Will you be taxed on the money you bring?
This is a common question, and the general answer is NO, unless you don't bring the money with you at the time that you migrate. Even then, the only tax you will pay, will be on any increase in its value since you became resident here. This change in value can be just from the Exchange rate movements, or the interest you have gained from Bank Accounts in the UK, or even property value increases.
An example to try to explain this:
Assume you have a property in the UK valued at £100k, and £20k in the bank.
You move over when the exchange rate is say 2.4 to the £, therefore you are worth $288,000.
Assume you bring your funds over 3 months later and the exchange rate at the time is 2.45 to the £.
You bring £120k x 2.45 = $294,000.
Your worth has increased by $294k - $288k = $6,000 and this is the figure that is taxable as part of your income for the relevant tax year. If the value of the house had gone up or down it would affect the taxable figure accordingly.
Will you be taxed on the money you bring?
This is a common question, and the general answer is NO, unless you don't bring the money with you at the time that you migrate. Even then, the only tax you will pay, will be on any increase in its value since you became resident here. This change in value can be just from the Exchange rate movements, or the interest you have gained from Bank Accounts in the UK, or even property value increases.
An example to try to explain this:
Assume you have a property in the UK valued at £100k, and £20k in the bank.
You move over when the exchange rate is say 2.4 to the £, therefore you are worth $288,000.
Assume you bring your funds over 3 months later and the exchange rate at the time is 2.45 to the £.
You bring £120k x 2.45 = $294,000.
Your worth has increased by $294k - $288k = $6,000 and this is the figure that is taxable as part of your income for the relevant tax year. If the value of the house had gone up or down it would affect the taxable figure accordingly.
