sunflower7

Hi everybody

I'm leaving for Oz in Feb and the exchange rate is so poor I am leaving my savings in the UK. I'm wandering if anyone knows whether I need to complete a form IR85 to be excempt from tax in the UK, so money can earn interest gross, or whether it isn't worh it due to delcarations that might have to be made in OZ?
Am I correct in thinking that you are permitted to bring 10,000 AUD into the country on your person when you arrive? but then i guess I may as well just withdraw from Nationwide flex account on arrival for my set up costs eg, rental bonds, car etc. Which is the best way to go about this, my mind is becoming haggled with all the 'things to do' before I go!

Have people continued paying NI contributions in the UK for possible pension rights at a later date?

Thanks $10,000
Am I right in thinking you are permitted to take $$$$$^^^^^&&

innojuk

Interest, what interest. They are talking about another 1/2 % cut in rates at the next meeting which will put it below 2% base rate, so goodness only knows what that will mean for savers.

sunflower7

I know its all doom and gloom. The oz rates sem a little better, but I believe they have dropped too! Trying to maximise in trying times along with everyone else. Its dificult to know what to do for the best, mind you there isn't much that can be done in the present state of affairs

innojuk

Look on the bright side it could be worse, my mate has just lost 10,000,000 in the bank collapse debacle and no that's not a typo

sunflower7

OMG

innojuk

Yes that was his reaction or words to that effect anyway. There are about 40 of them all in the same boat, all have lost 5,000,000 or more due to the actions of the British Govt in relation to the Icelandic banks.

marvinc

I don't know about the IR85 but you can fill in an p85 to claim back any tax that 'may' be owing to you, there was a thread on here the other day where someone had put a link oto download the form. With regards to savings worth keeping in mind that after 6 months if your money isn't over in Oz with you, you'll need to pay 48% (I think it is) tax to Oz govt on any 'profit' made.

Bel you can take any amount in cash in to Oz but 10k AUD and under you don't have to declare it.

Sure anyone will pick me up on figures above if they are little out

Know what you mean about the haggled mind Good luck in Feb!

billymacker

how will they know you have made a profit unless you tell them.

leekylou

[QUOTE=marvinc;7136473] With regards to savings worth keeping in mind that after 6 months if your money isn't over in Oz with you, you'll need to pay 48% (I think it is) tax to Oz govt on any 'profit' made.

[QUOTE]

We are coming on a 457 visa and were planning on bringing only some of our savings. We are keeping our home and renting and the profit on rental income and savings interest (or lack of) will be less than UK personal tax allowance.

Should we suddenly need to move some savings to Oz after 6 months will we have to pay 48 % tax. We are hoping to leave it in UK for return but you never know what may happen.

L

NedKelly

It wasn't the British Government, it was the stupid Icelandics that did it to themselves.

NedKelly

Absolute rubbish, the 6 month rule only applies to pension transfers, you can keep as much in the UK as you like, for as long as you like. You will also only pay tax on the interest at your top rate of tax. Any tax paid in the UK can be offset against what you may have to pay here.

carlap

I am no expert and have the same potential issues with savings. There is a lot of conflicting info on this forum and these are some of the things I have seen.

You pay 20% (edit: got this wrong before, maybe 10% is for shares, sorry!) nominal tax in the UK. When in Oz, you offset this against the tax liability. If you pay no tax in the UK, you will have to pay the full tax rate in Oz. So I wouldn't bother filling in the exemption form.

There is a lot of conflict about profits made on exchange rate. Some say you are taxed on the difference, so if you come over on 2.1 and exchange at 2.6 later, you pay tax on the 'extra' that you get. I did not think there was any time limit on this, it is based on the rate you entered the country. However in one thread there was something about tax not applying if sent from a bank account opened before 2003. I know it sounds wierd. Check out this thread http://britishexpats.com/forum/showt...ht=exhange+tax

If you are in Oz and have money in Oz banks you pay 45% tax if you do not have a TFN within the first month. You can get this back at the end of tax year. However, banks do not withold any tax when you have a TFN, so you 'keep' all your interest until end of tax year. By the way, has anyone set up a kids account to take advantage of this (up to their limit will you get savings tax free)

Hope this is correct, but generally it is just forum heresay (except the Oz bank TFN bit as it happened to us)

rightruccus

The issue about moving money over is a confusing one and we're still not 100% sure either.

From what we believe, if you "land" in Oz (as permanent resident with an intention to stay), if the rate on that day was say, $2.00/£1 and you then change your money at a later date, say $2.3/£1, then you're liable for Australian tax irrespective of whether that was within 6 months or more?
There must be people on here that have direct experience of changing money over at different times, that can clarify what they've found out.

Our questions are:
Is it true if we change our money within the 6 months from "landing", we'll pay tax on the "profit"? (We're not talking about the tax on the interest the money will gain whilst in an Australian bank account)

If we don't change any money over until after this so called 6 months deadline, what will we be charged in terms of taxation for changing it over?

It seems to be a grey area and we've never found the real answer yet and asked and looked for definitive information long enough.

If someone can send a link to a government webpage which gives information on the is and outs of moving personal funds, i'll spend the time digging out the relevant info we need.

rightruccus

Wish we did! All our UK accounts have interest taxed at 20%.

NedKelly

There is no 6 months deadline.