CHELSEAJAMIE

Hi there,
Basically, because the exchange rate has gone so c**p recently, we are intending to put the proceeds from our house sale in a high interest account such as National Savings (6.05% !) until which time the exchange rate improves, then transfer it into Aus dollars...bet were not the only ones doing this, as we are kicking ourselves we didn't "Forward contract" in Feb..hindsight!

* Is it true that we would be taxed on the interest made on this fund as "World wide income" after 6 or 12 months, if we don't transfer straight away, as we are emergrating at the end of July?

* Also, at what rate, is it the standard 20% ?

If somebody could pl clarify this for me, I would be very grateful, as the A.T.O were no help!

Finally, it does seem a bit of a cheek to me that the A.T.O/Aus Government can tax UK MONEY IN A UK ACCOUNT, but there you go....

Cheers, Jamie.

Grayling

You will be taxed on it as soon as you become resident in Australia.

As part of your income it will be taxed as part of your income so the rate will depend on how much you earn in total

Centurion

Why ? Since your not going to be resident in the UK for tax purposes and ultimately only going to pay 1 nation's tax on it. You dont get double taxed.

CHELSEAJAMIE

OK, thanks for your reply, guess that puts it in simple terms, but I HAVE read several times that they only start to tax you on "World wide" income after 6 or 12 months?

Does anybody else have any knowledge on this, pl?

CHELSEAJAMIE

Yep, realise that, BUT it is UK money in a UK account..but like you say will only be paying one nation's tax on it (Aus), although I wouldn't have been taxed on it in the UK period, as it's an ISSA account...

MartinLuther

The Inland Revenue would tax Australian money in an Australian account if you were tax resident in the UK.

Seems fair that the Aussies are allowed to do the same in the reverse situation.

galba

Are you sure? I thought money offshore (UK) was not taxed if a UK resident.

Galba

esperanza

Me too, thought that was the entire point of offshore accounts?

MartinLuther

Yep, I'm sure. If you are a tax resident of the UK.

Offshore accounts may not be taxed for people who are not normally resident (a special tax dodge for rich people). You may also avoid tax by not telling the UK taxman about your offshore earnings but it's considered illegal.

The UK government's perspective.

silver

UK Offshore accounts are not taxed at source but are taxed through your tax returns in your country of residence

CHELSEAJAMIE

OK, but were getting a bit off track here...Cn anybody shed some light on the original thread, ie UK money in a UK (ISSA) account and Aus tax...

Cheers!

MartinLuther

It gets taxed as income. The tax rate will depend on how much income you make.

Tax free periods are a myth except for the 6 months given to pension transfers.