OzTennis

I'm not sure if this is the correct forum but I'll fire away about my request for information.

Let us suppose someone changed £'s to $'s a long time ago at an average £1 = $2.61 and that money has been sitting in Oz earning interest at more than twice the rate cf UK and non-resident tax of 10% has been paid on it, withdrawn at source by CBA.

Now the exchange rate is low $1.50's this person is wondering what happens as far as HMRC is concerned if $'s were transferred to a UK a/c to take advantage of the weaker pound/stronger dollar? This person wonders if this will be taxed at this person's current rate or will it just be on the interest earned on this money? Will they look at the capital gain due to the exchange rate movement?

In essence, if you move money into a UK a/c do you have to declare it? Thanks in advance for any replies and I'll provide more specific info if needed.

Grayling

You don't need to declare it as far as I know. UK do not charge CGT on cash. I moved a large sum back recently.

Grayling

Here you are:

http://www.hmrc.gov.uk/cgt/intro/when-to-pay.htm

You do not pay CGT on foreign currency bought for your own use.

OzTennis

Thanks very much for the advice and the HMRC link.

When they say 'Foreign Currency you bought for your own or your family's personal use outside the UK' are they just referring to holiday currency or does it also include funds transferred from UK bank account to Australian bank account and then vice-versa? I'm not talking holiday cash, 'this person' I know () is able to move a lot from Oz (as in well over 6 figures in £'s).

pumpkin blossom

I'm pretty sure I read something ages ago about moving money from country to country. I think this was people moving money back to oz when the exchange rate was great, and they were going to and from the different countries just to take advantage of the exchange rates.
From what I remember they did have to pay tax in Australia on the difference. Only because it wasn't normal 'I've moved to another country, here comes my money' type situation.

Have a chat with a tax accountant. They will be able to tell you far more detail.

OzTennis

I was hoping to avoid having to pay for a tax accountant's advice but first hear from forum experts and people's experiences.

To be more specific it is about moving money from Australia to the UK to take advantage of today's terrific dollar exchange rate whereas we moved the money over a long period in the past to take advantage of the terrific pound exchange rate.

Quick background - Aussie married to Brit (well Scot), living in Scotland for long time, travel back to Oz every year for 3 months, we have a property in Melbourne, my mother recently passed away and myself and 2 brothers will sell her house in the next year which will add to the dollars we have saved in Oz. Obviously the house sale proceeds could be subject to Oz taxation first but that's a separate issue.

The question therefore is if we move hundreds of thousands of dollars from our Commonwealth Bank accounts to our RBS accounts here what is the position with respect to UK taxation with HMRC. The previous link to HMRC website seemed to be suggesting currency/travel money was exempt from UK tax but the position regarding interbank transfers of substantial funds is still unclear to me. Clearly I can ask HMRC 'what if' but I'd prefer not to at this stage!

Sherlock Holmes

'Scuse me if this sounds rude but if it is quite a large sum of money, can you not afford to ask someone who can give you the CORRECT answer.

There may well be experts on here but most of us are just expats trying to help where we can.

Beoz

Just a thought ...... didn't the UK have an inheritance tax?

OzTennis

If it's ok with you I'll wait to see if anyone has had a similar experience or knows a bit about it. I thought that's what this forum was about? Do people say in nearly every thread that people should pay for a migration agent rather than ask questions of others?

OzTennis

Yes, could apply to funds from house sale but to our own savings? Would be separate accounts for own savings and any inheritance from house sale. We would be moving our own savings if there isn't considerable/any UK tax; otherwise we'd leave it where it is.

Sherlock Holmes

Absolutely, it's your call of course. It was just a thought.

Some people who are emigrating are on a tight budget and would rather not afford an agent.

OzTennis

I appreciate that; I used to visit this forum a lot in the past as number of posts suggest although nothing like your figure.

moneypenny20

And some of us remember you very well and have wondered how you were doing. Generally around Wimbledon.

Edit: I'd go with Gs advice, he's the one shunting loads of money back to the UK.

old.sparkles

If you have a look around HMRC sites there is a lot of info - you could also ask them directly for advice which will probably be free. Have you previously declared your overseas savings to the tax office tho? Even though you were paying tax in Oz as a non resident, you may still be liable for tax in this country. Anyway, not an expert so have a look here

http://www.hmrc.gov.uk/taxon/foreign.htm

JAJ

Unclear what kind of comments can be made here. The information in posts #1 and #6 is inconsistent (how recently were these funds acquired) and it's hard to make meaningful comments. However, some observations:

- U.K. inheritance tax generally applies to the estate, not the beneficiary
- U.K. capital gains tax can apply to foreign currency. The gain or loss may only relate back to when the asset was inherited
- Non-resident tax of 10% is not normally enough to cover U.K. income tax. Was the interest income (since inheritance) declared on a U.K. tax return?
- All this may be different if the original poster is not U.K. domiciled.
- Is the plan to stay in the U.K. or leave?

A lot of excellent questions to discuss with a competent tax advisor.