Nigelsmith Posted January 18, 2016 Share Posted January 18, 2016 Hi I hold shares within the ISA and am moving in 2 months. Would anyone know whether capital gains tax would be payable in Oz when I sell the shares after becoming Oz resident? Once I l have the UK, does it mean the ISA has lost its tax free status? Comments most appreciated. Thank you Nigel Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted January 19, 2016 Share Posted January 19, 2016 Hi Nigel My understanding from a UK point of view is that the ISA will remain tax free although no further contributions can be made. From an Australian point and assuming that you will be a permanent resident then the income will have to be declared in Australia for tax and typically any gains will be assessed from the point you become Australian resident (this could be different if you are going to be a temporary resident). Kind regards Andy Quote Link to comment Share on other sites More sharing options...
Nigelsmith Posted January 21, 2016 Author Share Posted January 21, 2016 Hi Andy Many thanks for your reply. I guess I will have to make a decision very soon. Dont fancy paying tax in the future. Nigel Hi Nigel My understanding from a UK point of view is that the ISA will remain tax free although no further contributions can be made. From an Australian point and assuming that you will be a permanent resident then the income will have to be declared in Australia for tax and typically any gains will be assessed from the point you become Australian resident (this could be different if you are going to be a temporary resident). Kind regards Andy Quote Link to comment Share on other sites More sharing options...
Ken Posted January 22, 2016 Share Posted January 22, 2016 Hi Andy Many thanks for your reply. I guess I will have to make a decision very soon. Dont fancy paying tax in the future. Nigel Not difficult to do Nigel. Just be poor. Keep your total annual income below $20,000 and you won't have to pay any tax in Australia at all. Quote Link to comment Share on other sites More sharing options...
lp77 Posted January 22, 2016 Share Posted January 22, 2016 What about if you keep it in a fund that is recognised in oz? Can u keep it till retirement and use it as pension fund? Or kids uni fees? Quote Link to comment Share on other sites More sharing options...
Ken Posted January 22, 2016 Share Posted January 22, 2016 What about if you keep it in a fund that is recognised in oz? Can u keep it till retirement and use it as pension fund? Or kids uni fees? The funds that are recognised in oz are Super funds but the contributions are taxed 15% on the way in. There is an exemption for transfers from foreign pension funds in the first 12 months after moving but I don't thing that applies to ISAs. What he ultimately spends the ISA on (whether for his retirement or school fees) is irrelevant - it's the income (i.e. the interest on a Cash ISA) that is taxed. In fact the longer he keeps it the more he should earn so the more tax he'll pay. If he really want to pay no tax he should spend it or put it in an account that doesn't earn interest (leaving him with no income and so no tax). Not the wisest of moves in my opinion (you should always follow the strategy that's in your best interest, not the one that merely minimises your tax bill). Quote Link to comment Share on other sites More sharing options...
Kenfrapin Posted February 4, 2016 Share Posted February 4, 2016 Could I clarify if taxes are to be paid only on realised/actual gains rather than accrued gains? For example, if I invest in growth funds that dont pay a dividend, and my principle of £10k rises to £15k merely due to share price increase without any actual money paid out to me then I dont think I need to pay anything? If I do get dividends from trusts or funds or if I sell my investments, it's only at that time that I need to declare it as part of my tax return? Thanks Ken Quote Link to comment Share on other sites More sharing options...
winter1 Posted February 5, 2016 Share Posted February 5, 2016 (edited) Not difficult to do Nigel. Just be poor. Keep your total annual income below $20,000 and you won't have to pay any tax in Australia at all. In light of the roller coaster on the stock markets at this time you may lose more in investment than you would in tax if you cashed them in and brought the money to OZ. If your are going to be a permanent resident then the value in Australian dollars on the day you move to Australia is the base cost of the investment not from when you originally invested in the UK. I hear a lot of people saying I don't want to pay tax but tax is only paid on a gain or a profit. I would rather pay tax at a percentage than take a loss. Also remember that if you were to change your mind and return to the UK they would then become tax free again in the UK. On the downside if you did leave permanently you may be deemed to dispose of the asset on the day you left Australia and may have to report a gain at that time. However if you timed any departure to coincide with the tax year you could still be under the tax threshold for that year. Edited February 5, 2016 by winter1 Quote Link to comment Share on other sites More sharing options...
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