rightruccus

The 20% uk tax bit i understand. I don't understand the next bit. What should i do with it??

Ok.
What happens in terms of the alleged "profit" from exchange rate at "landing" ,to completion of funds transfer, if exchange rate greater than "landing rate?

Grayling

If you are a permanent resident in Australia you are liable for tax on your Worldwide income including interest from foreign bank accounts.

There is a double taxation agreement with the UK which means that you will be credited against Australia tax for any tax paid in the UK.

G

carlap

We have not been here to do a tax return yet, so just making comment. I assume on the Oz tax form there will be a section on foreign investments and incomes. There should be provision for tax paid.

This level of detail is beyond me. The ato web site should help you more.

It is always difficult replying to these threads with assumptions rather than facts, so I apologise for that, but you seem to want to know specifcs, so should maybe get some professional advice.

Grayling

Good advice

G

NedKelly

This is considered a captial gain, in which case you pay tax on the gain, or of it is a loss you can carry it forward until you can offset it against a gain in the future. (whether it is alleged or not you still have to pay tax)

rightruccus

Thanks everyone. All advice perceived or factual is good to know from anothers viewpoint and is appreciated.

Moral of the whole sorry tale? Stick your money under the mattress so no one can take a slice of it!! Your granny used to do it!, you should listen to your granny!!

sunflower7

Thanks to all replies.
I'll be going over on a residecy visa so I'm guessing I'm better off leaving the money in UK paying normal tax until such times (hopefully when the exchange improves) that I can transfer across. I'll be getting a TFN ASAP on arrival. Has anyone thought it was worthwhile transferring 50k over anyway despite the exchange rates? or does this entail more of a loss? ie exchange rate v. oz interest rates god I'm getting confused now!

NedKelly

You can always transfer sterling to a sterling account here. Then you can give the bank your TFN and pay no tax until you file your Oz tax return. I would be happier keeping a large sum like that in an Oz bank where it is guaranteed against loss than some of the dodgy banks in the UK. Plus you can go into the bank, withdraw it and then pay it back in just to make sure the bank still has it!

sunflower7

LOL you have a good point there!

carlap

Do you have any recommendations for a sterling account here. Most seem to rip you off in charges or eventual exchange rates if you bank in another currency (when looking in UK), or give terrible interest.

NedKelly

Most banks will open up a deposit account in sterling. HSBC do a multicurrency account and so do NAB. Both pay reasonable interest. Check online or give them a call.

DownUnderPaddy

Its already at 1.5% now - the lowest in the BoEs 315 year history.
Absolutely unchartered territory but it is expected to drop another 1% to .5% by Summer (in Europe) apparently.

The US and Japan are already efffectively at 0% so it is certainly not an unrealistic prediction.

More than 7m people in the UK now have saving accounts that already pay interest of 1pc or less.
Just over six months ago, savers were enjoying rates touching 7pc. The speed of the change is mind numbing.

If you are not in a hurry to get at your money, why not put it into a fixed rate bond ?
4.55% on a short term 6 month winter bond with Chelsea Building Society for example (matures July 2009)

carlap

Slightly off topic here, although it is another alternative to UK savings and maybe a way to maximise returns (might post as separate topic).

Does anyone know of good current / savings accounts for kids (13 year old). I have just got a TFN for him (get at any age for life) and as Oz banks do not withold tax (pay at year end), effectively we can use his account for tax free savings. However, most kids accounts have poor interest or conditions / fees etc.

We would like a current account for him to access some cash and a savings account with 'good' interest - mostly for our money up to HIS tax free allowance -which I understand is $420 of interest earnings - thanks to BE member abcdiamond's website http://www.britzinoz.com/index.htm. So I guess that is approx $8k tax free at 5% interest.

There are headline deals, eg 10% (Bankwest), but you deposit up to $250 a month and no withdrawals, plus need their child account which is not so great. Have looked around (honest !) but hoped someone has already found the good deals.

emelems

hmmm... TFN for a 13 year old!

Just goes to show that you are never too young to pay taxes to the government!

Em x

EvannTel

Absolutely true.
But if you then transfer that money into Aus at rate higher than that when you became "permanent" you will have to pay the tax on the capital gain. The tax will be your own marginal tax rate.
However I believe if you are on a 457 or temporary visa this rule does not apply. I know my OH could bring her pension in after the 6 month rule tax free as she is TR at the mo.