troy79 Posted February 27, 2012 Share Posted February 27, 2012 Hi All First Post. We migrated to Oz in 2007, now for various reasons we have decided to return to UK, possibly permanently - maybe just for a few years. My question is; I brought all my money here in 2007 at $2.50 to the pound and stand to make quite a big foreign exchange profit when I transfer the money back at $1.50. All well and good but will the uk taxman be entitled to any of it. Regards Troy79 Quote Link to comment Share on other sites More sharing options...
shaunr Posted March 7, 2012 Share Posted March 7, 2012 not sure but my guess would be no and can't see how it could be enforced! would be interested if anyone can give a definate answer though Quote Link to comment Share on other sites More sharing options...
jorgon Posted March 8, 2012 Share Posted March 8, 2012 Hi Troy79 Please don't accept this as tax advice, but in terms of Australian dollars you have made no gain at all. And since you have been resident in Australia for tax purposes during the period over which the exchange rate has moved, it is right to consider your assets in terms of Australian dollars and not in any other currency (ie. no gain). Further, during the same period, any gains you have made in terms of British Pounds are not taxable by HM Revenue and Customs (UK). This is because you have not been resident in the UK over that period. This assumes of course, that your tax residency has been clear cut, and there is no question for example of dual tax residency. Quote Link to comment Share on other sites More sharing options...
troy79 Posted March 9, 2012 Author Share Posted March 9, 2012 Thanks for the reply jorgon. I have taken advice since my initial posting, your post explains the situation clearly and is exactly the advice I received. My residency is clear cut so no problem there. Quote Link to comment Share on other sites More sharing options...
Guest HGT Posted March 13, 2012 Share Posted March 13, 2012 I am in the same position aand have been worrying about this. Could you tell me where you got the reassuring advice? My thought was that the event which may generate a CGT liability only occurs when you actually make the transfer. It's not an on-going thing during the years of residency in OZ. Therefore I thought it might matter whether you transfer the money back to sterling before or after leaving Australia, or it might even matter if it's in the same UK tax year as you eventually take up residency there. Any thoughts on these points? Quote Link to comment Share on other sites More sharing options...
ghost Posted March 13, 2012 Share Posted March 13, 2012 One thing to consider if you dont need all of your money in the UK. Leave some over here, as the interest rate for savings is worth keeping it here for. Quote Link to comment Share on other sites More sharing options...
troy79 Posted March 14, 2012 Author Share Posted March 14, 2012 I am in the same position aand have been worrying about this. Could you tell me where you got the reassuring advice? My thought was that the event which may generate a CGT liability only occurs when you actually make the transfer. It's not an on-going thing during the years of residency in OZ. Therefore I thought it might matter whether you transfer the money back to sterling before or after leaving Australia, or it might even matter if it's in the same UK tax year as you eventually take up residency there. Any thoughts on these points? The advice was from an accountant who is a friend of a relative. His advice was specific to my circumstances, all my assets are in cash and will be moved back to the Uk before I return. He did mention that if you have CGT assets bought in Aus and then sell them when you have moved back to UK (and become UK tax resident) you may be liable for UK capital gains, but he was refering to shares/bonds rather than the currency itself. I think Jorgons' post above describes the currency aspect clearly. Hope this helps, but best to get specific advice for your own circumstances. Quote Link to comment Share on other sites More sharing options...
troy79 Posted March 14, 2012 Author Share Posted March 14, 2012 HGT One more thing that I forgot to mention. Before I received advice from the accountant friend I also found something on the HMRC website. [h=2]Exempt assets - when you don't pay Capital Gains Tax[/h] Some assets aren't liable to Capital Gains Tax at all because they’re exempt. These include: your car personal possessions worth up to £6,000 each, such as jewellery, paintings or antiques stocks and shares you hold in tax-free investment savings accounts, such as ISAs and PEPs UK Government or 'gilt-edged' securities, for example, National Savings Certificates, Premium Bonds and loan stock issued by the Treasury betting, lottery or pools winnings personal injury compensation foreign currency you bought for your own or your family's personal use outside the UK Not sure that the last one is meant to relate to the circumstances we are discussing but it can be read that way 'if you want to' Regards Troy Quote Link to comment Share on other sites More sharing options...
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