UK £ - Oz $ tax question (sorry!)
#1
UK £ - Oz $ tax question (sorry!)
Hi folks,
I've tried searching for info on this but don't seem to be able to find the answers.
We've sold our house, we have £100k banked in the UK, we move to Oz next week (28/10), we don't want to exchange our £s just now (poor exchange and not ready to buy property).
How long do we have to transfer our equity from UK to Oz before we are tax liable? What will our tax rate be on the above amount? We will be permanent residents in Australia on 175 visas.
Thanks for your help.
I've tried searching for info on this but don't seem to be able to find the answers.
We've sold our house, we have £100k banked in the UK, we move to Oz next week (28/10), we don't want to exchange our £s just now (poor exchange and not ready to buy property).
How long do we have to transfer our equity from UK to Oz before we are tax liable? What will our tax rate be on the above amount? We will be permanent residents in Australia on 175 visas.
Thanks for your help.
#2
Forum Regular
Joined: May 2007
Posts: 92
Re: UK £ - Oz $ tax question (sorry!)
Hi folks,
I've tried searching for info on this but don't seem to be able to find the answers.
We've sold our house, we have £100k banked in the UK, we move to Oz next week (28/10), we don't want to exchange our £s just now (poor exchange and not ready to buy property).
How long do we have to transfer our equity from UK to Oz before we are tax liable? What will our tax rate be on the above amount? We will be permanent residents in Australia on 175 visas.
Thanks for your help.
I've tried searching for info on this but don't seem to be able to find the answers.
We've sold our house, we have £100k banked in the UK, we move to Oz next week (28/10), we don't want to exchange our £s just now (poor exchange and not ready to buy property).
How long do we have to transfer our equity from UK to Oz before we are tax liable? What will our tax rate be on the above amount? We will be permanent residents in Australia on 175 visas.
Thanks for your help.
Sorry I can't help, but we are in the same boat, so will be interested to hear opinions. Good look with your move, hope it goes smoothly for you.
#3
Re: UK £ - Oz $ tax question (sorry!)
You dont pay tax on that capital amount EVER. You will however have to declare any income you get from interest on it in the UK though on your Australian Tax return etc.
#4
Re: UK £ - Oz $ tax question (sorry!)
Tip top! Thanks very much. That's kinda what I thought.... same as in the UK, e.g. you don't pay tax on capital earned from your property as long as you've been living in it. Good tip on the interest earned issue though, hadn't thought of that, cheers again.
#5
Re: UK £ - Oz $ tax question (sorry!)
theoretically you may become liable to capital gains if the exchange rate improves after you become tax resident. Not sure how long though you have to move it with you and there are numerous threads on here discussing tax on FX gains and when/if you have to pay.
#6
Re: UK £ - Oz $ tax question (sorry!)
Hi folks,
I've tried searching for info on this but don't seem to be able to find the answers.
We've sold our house, we have £100k banked in the UK, we move to Oz next week (28/10), we don't want to exchange our £s just now (poor exchange and not ready to buy property).
How long do we have to transfer our equity from UK to Oz before we are tax liable? What will our tax rate be on the above amount? We will be permanent residents in Australia on 175 visas.
Thanks for your help.
I've tried searching for info on this but don't seem to be able to find the answers.
We've sold our house, we have £100k banked in the UK, we move to Oz next week (28/10), we don't want to exchange our £s just now (poor exchange and not ready to buy property).
How long do we have to transfer our equity from UK to Oz before we are tax liable? What will our tax rate be on the above amount? We will be permanent residents in Australia on 175 visas.
Thanks for your help.
#7
Forum Regular
Joined: May 2005
Location: Ex Southampton, now on the Mornington Peninsula
Posts: 257
Re: UK £ - Oz $ tax question (sorry!)
As I understood it you have to pay Capital Gains Tax on the difference between the exchange rate on the day you enter Oz and the money you make on a higher exchange rate at a later date.
#9
Re: UK £ - Oz $ tax question (sorry!)
Normally, once you become resident in Australia, it's unclear why you would want to engage in currency speculation (most Australians don't) - if your life and home are in Australia, you should normally want to hold your cash in Australian dollars.
#10
Re: UK £ - Oz $ tax question (sorry!)
yes if you can get it here at a decent rate you would - i think this is more about when to bring it over in the first place rather than an amatuer career in fx trading
#11
Re: UK £ - Oz $ tax question (sorry!)
The market - which is the balance of buyers and sellers worldwide - thinks that today's exchange rate is the "decent rate".
I am aware that many people don't like the current exchange rate but there are a lot of concerns about the future of the United Kingdom economy and there is no guarantee the future rate will be better. If people out there think the pound is undervalued, why are investors not rushing to buy it?
The future rate could be worse than today. Ask any South African.
#12
Re: UK £ - Oz $ tax question (sorry!)
ok - my definition is based on what i expected it to be when i moved, based on what it has been on average for the last 20 years.
I accept that may not be what is achieved in the future but i think it an understandable definition - certainly one shared by many here.
I accept that may not be what is achieved in the future but i think it an understandable definition - certainly one shared by many here.