Taxation of UK£ Currency When You Move to Australia
Oct 31st 2004, 7:45 am
#1
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Taxation of UK£ Currency When You Move to Australia
The ATO has issued two important Interpretative Decisions in the last few days that affect those who move to Australia and hold onto UK£ currency or loan balances.
More details are here:
http://www.gomatilda.com/news/article.cfm?articleid=327
Best regards.
More details are here:
http://www.gomatilda.com/news/article.cfm?articleid=327
Best regards.
Oct 31st 2004, 8:13 pm
#2
Lost in BE Cyberspace
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Re: Taxation of UK£ Currency When You Move to Australia
Alan:
Thanks for that. But I can't get my head around the way it's put!
We have three UK accounts (Barclays, Cahoot and Cahoot) which we are keeping just to have our pension put in every month and to service our UK credit card for a while. If we have made an election on those, how does this ruling effect us at all?
I can't really see how a ££ account can be realistically assessed for tax when a few hundred or thousand pounds is put in and taken out at irregular intervals - and when some of the outgoings are in sterling anyway!
Thanks for that. But I can't get my head around the way it's put!
We have three UK accounts (Barclays, Cahoot and Cahoot) which we are keeping just to have our pension put in every month and to service our UK credit card for a while. If we have made an election on those, how does this ruling effect us at all?
I can't really see how a ££ account can be realistically assessed for tax when a few hundred or thousand pounds is put in and taken out at irregular intervals - and when some of the outgoings are in sterling anyway!
Nov 1st 2004, 8:49 am
#3
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Posts: 55
Re: Taxation of UK£ Currency When You Move to Australia
Originally Posted by Rog Williams
Alan:
Thanks for that. But I can't get my head around the way it's put!
We have three UK accounts (Barclays, Cahoot and Cahoot) which we are keeping just to have our pension put in every month and to service our UK credit card for a while. If we have made an election on those, how does this ruling effect us at all?
I can't really see how a ££ account can be realistically assessed for tax when a few hundred or thousand pounds is put in and taken out at irregular intervals - and when some of the outgoings are in sterling anyway!
Thanks for that. But I can't get my head around the way it's put!
We have three UK accounts (Barclays, Cahoot and Cahoot) which we are keeping just to have our pension put in every month and to service our UK credit card for a while. If we have made an election on those, how does this ruling effect us at all?
I can't really see how a ££ account can be realistically assessed for tax when a few hundred or thousand pounds is put in and taken out at irregular intervals - and when some of the outgoings are in sterling anyway!
Seems straightforward (if crazy) to me provided the account was opened before the date.
Nov 1st 2004, 9:24 am
#4
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Re: Taxation of UK£ Currency When You Move to Australia
On the surface yes - but why then the references to whether or not an election has been filed? And the reference to CGT instead of income?
I think they have got themselves into a mess introducing legislation in the first place without any thought as to the complications in a real world situation. And they are digging deeper and deeper into the hole.
There are a lot of us out here who keep an account or two open for severely practical reasons. In my own case my pension is paid into a UK account, and most of this is remitted monthly into my Oz account via HIFX. (That's another story - last month's money did not appear out here because "one person at HIFX was sick". Just as well that I don't rely on each remittance to pay the bills. But I digress).
There is each month a small surplus left in the UK account. I still use a UK credit card so pay it off from this account. And when I visit the UK I will take out some cash from it.
How on earth could anyone make sense of all these little ins and outs?
No, I think it's ill-conceived and will probably die the death.
I think they have got themselves into a mess introducing legislation in the first place without any thought as to the complications in a real world situation. And they are digging deeper and deeper into the hole.
There are a lot of us out here who keep an account or two open for severely practical reasons. In my own case my pension is paid into a UK account, and most of this is remitted monthly into my Oz account via HIFX. (That's another story - last month's money did not appear out here because "one person at HIFX was sick". Just as well that I don't rely on each remittance to pay the bills. But I digress).
There is each month a small surplus left in the UK account. I still use a UK credit card so pay it off from this account. And when I visit the UK I will take out some cash from it.
How on earth could anyone make sense of all these little ins and outs?
No, I think it's ill-conceived and will probably die the death.
Nov 1st 2004, 9:29 am
#5
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Re: Taxation of UK£ Currency When You Move to Australia
I'm going to beg to differ Rog. I expect this legislation to be around for the foreseeable future.
Best regards.
Best regards.
Originally Posted by Rog Williams
On the surface yes - but why then the references to whether or not an election has been filed? And the reference to CGT instead of income?
I think they have got themselves into a mess introducing legislation in the first place without any thought as to the complications in a real world situation. And they are digging deeper and deeper into the hole.
There are a lot of us out here who keep an account or two open for severely practical reasons. In my own case my pension is paid into a UK account, and most of this is remitted monthly into my Oz account via HIFX. (That's another story - last month's money did not appear out here because "one person at HIFX was sick". Just as well that I don't rely on each remittance to pay the bills. But I digress).
There is each month a small surplus left in the UK account. I still use a UK credit card so pay it off from this account. And when I visit the UK I will take out some cash from it.
How on earth could anyone make sense of all these little ins and outs?
No, I think it's ill-conceived and will probably die the death.
I think they have got themselves into a mess introducing legislation in the first place without any thought as to the complications in a real world situation. And they are digging deeper and deeper into the hole.
There are a lot of us out here who keep an account or two open for severely practical reasons. In my own case my pension is paid into a UK account, and most of this is remitted monthly into my Oz account via HIFX. (That's another story - last month's money did not appear out here because "one person at HIFX was sick". Just as well that I don't rely on each remittance to pay the bills. But I digress).
There is each month a small surplus left in the UK account. I still use a UK credit card so pay it off from this account. And when I visit the UK I will take out some cash from it.
How on earth could anyone make sense of all these little ins and outs?
No, I think it's ill-conceived and will probably die the death.
Nov 1st 2004, 9:31 am
#6
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Re: Taxation of UK£ Currency When You Move to Australia
Originally Posted by Rog Williams
And the reference to CGT instead of income?
I haven't looked at it closely yet myself. But that was my quick thinking when I read it quickly.
Nov 1st 2004, 11:04 am
#7
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Posts: 34,649
Re: Taxation of UK£ Currency When You Move to Australia
Originally Posted by Alan Collett
I'm going to beg to differ Rog. I expect this legislation to be around for the foreseeable future.
Best regards.
Best regards.
The provisions are intended for larger corporations who have tax and loan balances going into the hundreds of millions of dollars range.
If you pay your income tax and CGT and are not super-rich, I can't realistically see this legislation being enforced on the average taxpayer. It's not so much the amounts involved, it's the complexity (and time required) of working out these gains and losses. Both for the ATO as much as the taxpayer.
Jeremy
Nov 1st 2004, 9:07 pm
#8
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Re: Taxation of UK£ Currency When You Move to Australia
Agreed ... that's why there is an exemption from applying the forex legislation for those who have balances totalling less than A$250,000 and who prepare the relevant election ...
Best regards.
Best regards.
Originally Posted by JAJ
The legislation is going to be around, but when I had a chat with some of the ATO people dealing with it I detected a distinct lack of enthusiasm for the idea of spending inordinate hours of time working out gains and losses on small amounts of money.
The provisions are intended for larger corporations who have tax and loan balances going into the hundreds of millions of dollars range.
If you pay your income tax and CGT and are not super-rich, I can't realistically see this legislation being enforced on the average taxpayer. It's not so much the amounts involved, it's the complexity (and time required) of working out these gains and losses. Both for the ATO as much as the taxpayer.
Jeremy
The provisions are intended for larger corporations who have tax and loan balances going into the hundreds of millions of dollars range.
If you pay your income tax and CGT and are not super-rich, I can't realistically see this legislation being enforced on the average taxpayer. It's not so much the amounts involved, it's the complexity (and time required) of working out these gains and losses. Both for the ATO as much as the taxpayer.
Jeremy
Nov 1st 2004, 9:58 pm
#9
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,397
Re: Taxation of UK£ Currency When You Move to Australia
>>Agreed ... that's why there is an exemption from applying the forex legislation for those who have balances totalling less than A$250,000 and who prepare the relevant election ...<<
Which brings me back to my original question. Why the comment in Alan's newssheet "... so long as a transitional election has not been made under section 775-150....."?
Am I to understand that if an election IS made on one's account(s) that a small "gain" will be assesed under income tax if not CGT?
Which brings me back to my original question. Why the comment in Alan's newssheet "... so long as a transitional election has not been made under section 775-150....."?
Am I to understand that if an election IS made on one's account(s) that a small "gain" will be assesed under income tax if not CGT?
Nov 1st 2004, 10:11 pm
#10
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Joined: Jun 2003
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Re: Taxation of UK£ Currency When You Move to Australia
Can someone explain this 'election' thing?
Originally Posted by Alan Collett
Agreed ... that's why there is an exemption from applying the forex legislation for those who have balances totalling less than A$250,000 and who prepare the relevant election ...
Best regards.
Best regards.
Nov 1st 2004, 11:51 pm
#11
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Re: Taxation of UK£ Currency When You Move to Australia
They are two different elections Rog ...
Best regards.
Best regards.
Originally Posted by Rog Williams
>>Agreed ... that's why there is an exemption from applying the forex legislation for those who have balances totalling less than A$250,000 and who prepare the relevant election ...<<
Which brings me back to my original question. Why the comment in Alan's newssheet "... so long as a transitional election has not been made under section 775-150....."?
Am I to understand that if an election IS made on one's account(s) that a small "gain" will be assesed under income tax if not CGT?
Which brings me back to my original question. Why the comment in Alan's newssheet "... so long as a transitional election has not been made under section 775-150....."?
Am I to understand that if an election IS made on one's account(s) that a small "gain" will be assesed under income tax if not CGT?
Nov 1st 2004, 11:53 pm
#12
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Re: Taxation of UK£ Currency When You Move to Australia
Have a look on the ATO's website and search on forex election.
If you are still confused I'd recommend paying for some professional advice - I'm afraid there's a limit to what I can convey on a forum such as this one ... my Australian CA business partners John Griffiths or Jeremy Coverdale should be able to assist, on 07 3226 1800.
Best regards.
If you are still confused I'd recommend paying for some professional advice - I'm afraid there's a limit to what I can convey on a forum such as this one ... my Australian CA business partners John Griffiths or Jeremy Coverdale should be able to assist, on 07 3226 1800.
Best regards.
Originally Posted by brisnick
Can someone explain this 'election' thing?
