Shall we leave money in uk or will the tax man have it?!

[Angie30]

Hi

We are moving at the begining of August and don't want to exchange all of our money as the exchange rate is so bad

We are considering taking only some of it and bringing the rest out when the exchange rate improves. I have heard that there is a timescale of 6 months to bring money out after you leave otherwise the tax man will take some if you make a profit.

Is this true and if so what are the details of how much the tax man has and based on what?

Hope someone can help

Angie

[AndrewL]

Originally Posted by Angie30

Hi

We are moving at the begining of August and don't want to exchange all of our money as the exchange rate is so bad

We are considering taking only some of it and bringing the rest out when the exchange rate improves. I have heard that there is a timescale of 6 months to bring money out after you leave otherwise the tax man will take some if you make a profit.

Is this true and if so what are the details of how much the tax man has and based on what?

Hope someone can help

Angie

Hi Angie,

There's lots of threads regarding this issue and I'm always surprised by people stating this six month rule. It does not exist.

The only issue you will have is if you are a permanent resident and you have more than A$250k in your non-Australian bank account. You will be taxed on the exchange rate gain, if applicable, or will be able to deduct an exchange rate loss if you bring over less A$ than you have in the non-A$ currency as at the date of becoming PR.

Cheers, Andrew

[Liam]

Just to expand on what Andrew said above. The 6 month rule only applies to transfer of Pension funds and the rule is designed to put you in the same position as an ordinary austrlaian resident who is taxed at 15% on the earnings of their pension (superannuation) fund while in accumalation phase.

So it does not apply to your money from the sale of your home or savings.

By leaving funds in the UK you may incur taxes on the income earned and the exchange rate gain if the aussie dollar depreciates once you becoem a PR. Best Advice is to go and see an Aussie Accoutant to look at your options. I always recommend Alan Collet at Go Matilda - Your Gateway to Australia - Visa, Tax and Financial Planning for Australia as he is qualified both in the Uk and Australia.

best of luck ...i am off to book flights to Europe as this is the best it has ever been for those going on holidays from Australia!

Liam