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Transferring funds, Help Please!!

Transferring funds, Help Please!!

Old Jun 26th 2007, 8:23 pm
  #1  
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Default Transferring funds, Help Please!!

Hi Guys
A little about our situation. My husband has been offerred a job in Queensland and we are going over on a 457 temporary visa. We are trying to decide whether to sell our house in the UK or not as we know we wont really be able to buy a house there on a temp visa. So...do we sell now or not? We have large equity enough to pretty much buy outright in Australia. My husband was told some shocking news today, so please can anyone help?

1. If we sell our house now, even though we cannot buy there, we will get a better rate taking money in, but be taxed on it until we can buy, and at a high rate?

2. If we rent our UK house for 2 years say, then sell to buy a Australian house when we are allowed to, we will have to pay 40% on the money to bring it in because we have been in Australia for a couple of years. This would nearly be £80K

The problem I have is understanding why, if it IS true we would pay 40% on funds purely because we have waited a couple of years to bring it in?
Surely nobody would expect us to sell when we have only a temporary working visa, but then surely they cannot tax us so much for covering our backs in the UK?

Please can anyone help??

PP xx
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Old Jun 26th 2007, 9:28 pm
  #2  
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Default Re: Transferring funds, Help Please!!

Hi,

as far as I am aware there is no problem you buying in Oz on a temp visa. It's just a matter of getting FIRB approval and as you would be buying as your principal residence then I can't see a prob - check out there website to be sure of the full regulations - www.firb.gov.au

As far as your other points go I would check with a tax specialist. I believe (but may be wrong) that the rent you would get from your house would be classed as income for tax purposes. If you sold later you may be liable for CGT on the difference between the value now and the value then. Also if you sold now and banked the cash you would be liable for tax on the interest earned.

In summary what you have been told seems on the face of it rubbish, but for the sake of a few hundred quid in fees, talk to a tax specialist.

Hope this helps,


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Old Jun 27th 2007, 8:41 am
  #3  
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Default Re: Transferring funds, Help Please!!

Money that you bring into Australia as a tax resident isn't taxed as such on transfer

However, if you become tax resident say in July but don't transfer your cash until December, you can be taxed on the increase in AUD$ value between the two dates - the cash is just like any asset in this regard.

Of course, if you leave the money in the UK earning interest, that interest is taxed on becoming a tax resident.
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Old Jun 27th 2007, 9:07 am
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Default Re: Transferring funds, Help Please!!

Just wanted to say that quite a few people on BE have bought houses on 457 visa. I looked into it and it is possible to buy.

As above poster pointed out you just need firb approval. The property has to be for you living in, (not renting out to another family) but apart from that think everything is ok.

Also think you can claim your first time buyers grant if you get PR by 12 months.

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