atiredperson

Referring to a conversation I have with a tax advisor its all about when you take up your residency in Australia ,not when the money was placed in the bank account . for example : I have just sold my house funds will be in my account next week . we move on 31st January 2015 if we take the money with us that day you get what ever the current exchange rate is ...no tax to pay. if you leave it in a UK bank account for five years and in that time the exchange rate has increased from 1.8 to 2.1 then you would have to pay tax on the 30 cent increase ie 6 cents in the pound . however if you transfer your house sale money (and you can prove it is from the sale of you main residence) within 4 years there is no tax to pay. so basically move it before your 4 years is up.

If the money in your account is not from your house sale eg savings then the 4 year rule does not apply. so make a note of the exchange rate the day you take up residency in Australia. but on a positive note if the exchange rate was to increase by 30 cents then you would still be 24 cents up in the pound so your still onto a winner :wink:

Thanks for sharing the information.

So if I sell my main house in my home country after I have taken up residency in Australia, I would be taxed. Question, how's the calculation for the tax? They would use the price difference of when I sell the house and when I purchase the house (probably 20 years ago)? Or... ?

Assuming I sell the house before I take up residency in Australia, I am able to bring in the fund from house sale to Australia within 4 years of residency, and there would be no tax. However, if I bring in the money 4 years after, I am liable to pay tax for the gain in exchange rates only, but not on the gain from house sale?

Any advice would be appreciated. Thanks.