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Gains in an ISA on a Platform


MTut

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Havings done a fair bit of reading up, it seems our Aussie Tax friends would want to know about gains or income from ISAs in the UK to add to my 'worldwide income' from when I start paying tax in Oz.

 

My ISA portfolio here is held on a platform and has several funds within.

 

My question is, would the Australian Tax office want a slice of any gain when switching between funds within the wrapper?

 

Or are they only interested in the gain when the ISA is actually fully or partly encashed?

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I would say that an ISA is really a slightly different form of savings account and the money and interest is accessible for you to use at anytime, therefor once you are classed as an Australian Resident for tax purposes, then all interest will have to be declared to the ATO. This is my understanding, there may however be some tax avoidance schemes which others may be able to help you with.

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Havings done a fair bit of reading up, it seems our Aussie Tax friends would want to know about gains or income from ISAs in the UK to add to my 'worldwide income' from when I start paying tax in Oz.

 

My ISA portfolio here is held on a platform and has several funds within.

 

My question is, would the Australian Tax office want a slice of any gain when switching between funds within the wrapper?

 

Or are they only interested in the gain when the ISA is actually fully or partly encashed?

 

I hold both ISA funds and non-ISA funds. I have yet to make any disposals but my understanding would be that there is no difference between any gains in the two as far as the ATO is concerned. My expectation is that the ATO will tax any gains when switching funds as that would be the time that a gain arises. I am happy to be corrected by anyone with more knowledge though.

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Hello

 

If it was an Australia investment platform then typically with investment funds gains earned when selling out of a fund need to be declared on an individuals tax return.

 

KR

 

Andy

 

Thanks Andy.

 

I guess the difference there is that each fund you sold on an Australian platform would be, in effect classed as it's own individual investment - which is the same as here for platform investment outside of a stocks and shares ISA.

 

So that logic would then apply if they basically ignored the ISA wrapper and just looked at where it was invested. So if you hold 5 funds witihn your ISA, it's treated as 5 seperate investments rather than one large investment.

 

If that's the case I'll probably just move my individual fund either into one multiasset / Multimanager strategy or offset them against the mortgage for simplicity.

 

I guess they're happy with switches in a UK pension being tax free still though aren't they?

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