myedsore

Hi Folks
We have joined the long queue of wannebes that are hoping to be out in Brisbane by this time next year. One question about money before we finally take the plunge and get the house on the market. If the house was to sell say the first week (you never know), what would be best to do with the lump sum of cash we would be sitting with. can this be invested in an account so that the tax man doesn't scoop a huge chunk off. Surely other people have been in the same position? Does the tax man not bother is you are migrating? The last thing I want is to loose 40% of my hard earned profit from the sale of my house.
Cheers
Mark

stokesy43

There is no capital gains tax liability on the profits from selling a house as long as it is your primary residence.

If you then invest the money any interest/gain is liable to capital gains tax as per any normal savings account

JAJ

And contrary to popular myth, there is no such thing as capital transfer tax.



Jeremy

Stephen

Anyone in your household over 16 can put £3000 into a Cash ISA per annum (Cash ISA only..dont invest it if you are thinking short term) which can be withrawn on demand. Tax free interest. Capital secure.

http://www.fsa.gov.uk/consumer/09_SA...s/mn_mini.html



You can also put £30000 into premium bonds (each) and withdraw on demand. Tax free prizes. Capital secure.

http://www.nsandi.com/products/pb/index.jsp

There are also high rates on interest bearing savings accounts outwith the ISA (Tax free) umbrella which although you pay tax on the interest at 20%, are solid and suitable for short term savings.

http://www.fool.co.uk/decisioncentre...asyaccess.aspx


All of the above are designed for instant access (max a week) and for short term/holding savings. Dont gamble.

Hope this helps.

steve`o

i can defiantly vouch for the premium bonds we invested in these and get about 50 quid a month back in prizes just waiting for the big one

fingers crossed

regards Steve

stokesy43

What's that then or rather what's it not if it doesn't exist?

ABCDiamond

Be aware though, once you become Australian Tax Resident, any Premium Bond winnings are taxable here in Australia.



Something for the Original question though.....

Will you be taxed on the money you bring?

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

mattmc

Hi,

So what is the tax liability on funds you bring after you migrate, say 6 months later? Is is classed as capilat gains tax?

regards
mattmc

jonjon

hi steve sorry fo asking this but how much do you have investered in them if it is £30k an dyou are only getting £50 a month back you would be better investing this in a high intrest account as at around 5% gross this would net you approx £100 per month 50% more than you are getting (If my maths is right)

ABCDiamond

The only tax you will pay, will be on any increase in its value since you became resident here.