Hi new to the site. Have been retired for sometime and have decided to move back to UK to be near family etc.
Sold home in Aust but not ready to buy in UK wondering about how to maximise return on capital, which country to put money in. Interest rates seem appalling in UK & don't think I would be allowed to invest in ISA's as not taxpayer.
Interested to know if anyone has similar experience.

So you planning to move to the UK and rent for a while, or stay in Australia until you're ready to buy in the UK? As for good return on your savings, I don't think there's a good answer to that in today's climate. After all you don't want to risk your capital shrinking if you'll be needing it in the short to medium term for setting up home in the UK..

Where do you plan to return to? If it's the southeast, keeping your capital out of the property market could be an expensive mistake.

If you've got enough capital to buy a property that is probably your best option. If not, the Chancellor announced a new National Savings product for pensioners in the budget called a Pensioner Bond. It will be available for people over 65 from next January and will pay 2.8% for a one year bond and 4% for a 3 year bond.

I think this will be limited to £10,000, so its usefulness will depend on how much capital the OP is talking about.

I would recommend the OP take a look at the Moneysavingsexpert Web site for a rundown on the various options in the UK. "Investing" capital is a tricky affair and depends a lot on personal tolerance for risk and timeline. Savings accounts and bonds and cash ISAs these days don't even seem to beat inflation, especially after tax (not applicable to ISAs of course).

The other big question is to do with currency exchange rates and whether to invest overseas and risk changes in the exchange rate, or exchange now and lock in the rate.

Oh dear I was hoping that that bond was in increments of £10 000 but you could invest more. Must have to admit though I have not looked into it. Our property is probably our main source of income anyway.

List of 6 facts about the proposed pensioner bonds here.

Thanks to Dunroving's helpful post, I've just been looking into it, and not only is there a £10,000 limit, but it is limited issue, so you have to get in quick.

Thanks for that link. Unfortunately £10 000 is not going to give you much income!

£250 per annum will be plenty! Remember how cheap tea bags are in England, and the bus pass is free!