sooz&abby

Hi there,

We are off to Melbourne in 6 weeks time. Once we get the cash in the bank from our house sale we then need to obviously convert this to ozzie dollars.

As the exchange rate is extreemly poor and has been for a wee while now how long can you hold off keeping the money in the UK before you get taxed heavily on it. I believed it was 6 months but can someone confirm please.

Cheers
Susan

Ozbound7

We are in the same position. However I have a legitimate strategy for keeping GBP in the UK earning interest indefinitely which I will use unless the rate improves. (This would not suite everybody as it depends on having a SMSF with UK investments and you need to be over 50 to access the cash)

longreach

This question seems to come up a million times The 6 months window only applies to PENSIONS. You will be taxed on any gain you make as a result of exchange rate improvements. So for example, if you had £100,000 to exchange: if the rate was 2.3 when you arrived and 1 year later it improved top 2.6 and you decided to exchange then, you would be taxed on the gain (100,000 x 0.3) being $30,000. Same would apply if you made any losses and therefore you could gain relief.

Macky74

Hi Susan,
Whereabouts in Newcastle are you from? I'm from Westerhope.
My girlfriend and I are off to Melbourne on 23rd August.

We are thinking of transferring enough money to cover our rent/expenses for the first say 3 months and then transfer the rest of our money when the rate improves or when we want to buy somewhere.

Cheers.
Andrew

walaj

vote on UK interest rate other wk was 5 hold, 4 cut - thus likely will be decrease next mth. Not the only factor for exchange rates, but does help the £ become weaker (as it has today against most currencies). One investment bank thinks that the interest rate will be 4% by mid 2006, further bad news for those (incl ourselves) wanting to exchange £ to AUS$.

yes to tax on exchange gains made from being resident, but AFAIK no relief for losses, or maybe just against other exchange gains.

sooz&abby

Hi there,

I wondering if this is a coincidence but have you emailed Baconmaster about meeting up in melbourne when we get there in Sept?
If so he's my husband.

We're definately up for meeting up when we get there..
Thanks for the advice on the money transferring too..i think thats what we'll do too...

Cheers
Susan

Macky74

Yes it is me, coincidence or what

Look forward to meeting up in Melbourne soon

Catcha later.
Andrew

Ninijon

Hi Susan and Andrew,

My husband and I are also moving to Mel at the beginning of September. We plan on renting a flat in Southbank for the first 6 months to start with, although Jon will be working in Geelong. It would be fab if we could all meet up for a drink? Have you guys been before? Do you know where you will be living? Dont know about you but I am so so so excited!

Cheers
Janine

CJN

The interest rate on savings here in the UK is about 4% & from what I can see the savings interest rate in Oz is higher as the mortgage rate is about 7 - 8% so why not just cut your losses & benefit from the higher savings rates in Oz?

Macky74

[QUOTE=CJN]Hi Susan and Andrew,

My husband and I are also moving to Mel at the beginning of September. We plan on renting a flat in Southbank for the first 6 months to start with, although Jon will be working in Geelong. It would be fab if we could all meet up for a drink? Have you guys been before? Do you know where you will be living? Dont know about you but I am so so so excited!

Cheers
Janine[QUOTE]

Hi Janine,
Yeah sure lets meet up, the more merrier really

My girlfriend and I were in Melbourne Xmas 2002 for the last Ashes series. We stayed in St Kilda which is a good place to go out for food and drink etc.

We've got a hotel booked in St Kilda for the first 2 weeks and then we are going to rent for the next 6 months before we buy. Looking to rent either Albert Park, St Kilda Rd, South Melbourne or Southbank type areas.

Oh yes very excited indeed

Send me a PM and I'll give you my e-mail address.

Cheers.
Andrew

parkhigh

Hi

The 6 months window only applies to PENSIONS.

I validated my visa back in march does this mean that any money that we take from the proceeds of our house now will be eligable for taxation? I had thought that we had one year to take all our money out of the country and that only applied when we were officially living there...iei hopefully mid october 2005?


Irene

longreach

It starts when you become a resident for tax purposes, ie a validation trip does not count as a tax resident. No one year rule that I am aware of!!

parkhigh

Thanks for that lets hope that the exchange rate improves in the next few months! However, may put the money into good rate for a couple of months to outweigh any losses re exchange rate.
Irene

joho

My question is. How do they know when you bring money in.

Jo

davidclifford

If it is a lot of money, e.g. proceeds from the sale of a house then I have been advised to open an offshore account e.g. NatWest Jersey to avoid any tax problems