Guest chrissy63 Posted December 29, 2007 Share Posted December 29, 2007 We are selling our house like many of you to finance the move. We will make a reasonable profit but looking at some of the threads not sure if its best to exchange all our money in one go or just to take enough to get by initially and leave rest here in high interest rate account and exchange when/if rates improve. Know have to pay tax on money exchanged but would you pay more this way than if you took the lot. Not very good with finiancial things thanks Link to comment Share on other sites More sharing options...
The Broughtons Posted December 29, 2007 Share Posted December 29, 2007 What tax??? The only tax we paid on our money was the tax on the interest it was earning in the bank! We bought over most of the equity from our house and didn't have to pay any tax. We had a lengthy chat with a financial adviser regarding our pensions and she enquired about savings but there were no tax implications there. Felicity:cute: Link to comment Share on other sites More sharing options...
calNgary Posted December 29, 2007 Share Posted December 29, 2007 I remember reading something about any money brought into the country after you have been here 12mth is taxable ,,how true this is im not sure .We have transferred a few small amounts from our uk to oz account via the internet and had no problems.With the rate so rubbish at the moment ,id be tempted to leave some in the uk if you dont need it straight away. Cal x Link to comment Share on other sites More sharing options...
Guest dwaldron Posted December 30, 2007 Share Posted December 30, 2007 Divide your house funds by six and do six transfers, one each month. That way you will smooth out exchange rate variations and if the rate goes up you win and if it goes down you win. Link to comment Share on other sites More sharing options...
Guest jenny4nails Posted December 30, 2007 Share Posted December 30, 2007 Hi Chrissy, we will be using HiFX for our financial matter, just our opinion...but they seem really good, why not try contacting them for some advice thie UK tel no is: 01753 752 740 and their website is Foreign Exchange Specialists | HiFX plc We met Shane Thomas, and agent from HiFX at a migration seminar and he was really helpful, and he did say that they didn't charge anything for transferring money for you? Hope this helps. Jenny Link to comment Share on other sites More sharing options...
Guest sydneyshell Posted December 30, 2007 Share Posted December 30, 2007 We use Moneycorp. They have been great thus far, and even when we didn;t have the money in time for a transfer we had booked at a GREAT exchange rate (those were the days) they allowed us to delay it indefinitely. We transfer money quite alot as we have a mortgage in Oz, and have bought 2 properties over the past 5 years, and have found that you should only transfer when the exchange rate is good eg do just waht you need to get by. If the rates soar, then exchange loads, or at least book it in. We pay 10% deposit for the benefit of booking the exchange rate eg is sending £20 000, pay £2000 and the rest when sending. Hope that helps Link to comment Share on other sites More sharing options...
Guest swampo Posted January 6, 2008 Share Posted January 6, 2008 I remember reading something about any money brought into the country after you have been here 12mth is taxable ,,how true this is im not sure .We have transferred a few small amounts from our uk to oz account via the internet and had no problems.With the rate so rubbish at the moment ,id be tempted to leave some in the uk if you dont need it straight away.Cal x We are interested in that one also. I though I read somewhere that you had to get your money into Australia 6 months after you validate your visa otherwise you are taxed something like 40% an the money you transfer after that date. Please is there anyone out there who can tell us what the right information is??? Much apreciated. Link to comment Share on other sites More sharing options...
Guest Working to fish Posted January 6, 2008 Share Posted January 6, 2008 Hi Swampo From what i can make out and i'm no money expert you have 12 months to get all of your money into oz before you are taxed. Do not take this as gospel, but from what i can work out it works the same as it does here. Whatever interest you make in the first 12 months, if the money is here you'll be liable to pay tax here, being England. After 12 months, if money is in oz you'll liable to pay tax on interest in oz. The tax you pay is on interest earned only, not what money you have. If i am wrong would be happy for someone to put me right. Eddie and Tina Link to comment Share on other sites More sharing options...
Guest swampo Posted January 6, 2008 Share Posted January 6, 2008 Thanks for response Eddie and Tina, I hope that you are right as we have to make a validation visit in May and although we hope to be over in Oz by September we are still trying to sell the house in order for us to be able to go! If anyone else has any other informatiion I am sure that we would all appreciate it. Cheers Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted January 7, 2008 Share Posted January 7, 2008 Thanks for response Eddie and Tina, I hope that you are right as we have to make a validation visit in May and although we hope to be over in Oz by September we are still trying to sell the house in order for us to be able to go! If anyone else has any other informatiion I am sure that we would all appreciate it. Cheers G'day What Eddie and Tina said is largely right. There are some "minor adjustments" to that depending upon your visa type and when you become considered to be a "resident of Australia for tax purposes" However, the general rules are 1) you pay no tax in Aust based on the transfer of assets from the UK to here. 2) you are not liable for Capital Gains Tax in Aust when you sell your property(s) in the UK to move here 3) when you move your money to Australia and you earn interest on it, that INTEREST will become part of your Aussie taxable income and you will be taxed accordingly. 4) if you leave money or assets in the UK after you come to Australia and have permanent residency and become a "resident of Australia for tax purposes" then you will be liable for Aussie tax on the interest, income or capital gains of those UK assets. Of course, what I have said is just *my* opinion and is very general and does not apply to all situations and all people and I have NO idea if it applies to YOUR situation. If you want financial advice you can rely on, or sue someone if it is incorrect, you will need to seek paid professional advice. Link to comment Share on other sites More sharing options...
Guest breezy Posted January 7, 2008 Share Posted January 7, 2008 Hi Bob- we have a UK based investment property that we are in the process of selling. If the completion occurs after we have moved to Oz, can we elect to pay CGT in Oz rather than the UK. Our calculations show will will pay less because of the 50% CGT discount in Oz as we have already used part of our UK CGT allowance. Thanks Breezy Link to comment Share on other sites More sharing options...
Life on easy street Posted January 7, 2008 Share Posted January 7, 2008 I am no expert It is my understanding that if you delay transferring your money After you have arrived in Australia on a permanent visa Example If have £100k to transfer If the day you land in Australia the exchange rate is 2.2 But one year later when you transfer your money you get 2.5 You have made a capital gain of $250k - $220k= $30k Taxable gain =$30k-Capital gains tax allowance I hope I am wrong on this please seek professional advice from an Australian Tax Advisor Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted January 7, 2008 Share Posted January 7, 2008 I hope I am wrong on this Sadly, you're right !! Capital gains due to currency fluctuations are liable to Aussie Capital Gains Tax. please seek professional advice from an Australian Tax Advisor VERY good advice. It's worth repeating - if you (or anyone) wants advise you can rely on, pay for it - go and see a suitably skilled and registered professional. Link to comment Share on other sites More sharing options...
Guest Cool_Eyes Posted January 8, 2008 Share Posted January 8, 2008 How would you be liable to pay tax in Aus if you did not inform them you have money left in the uk ! Abbey Intl do an offshore account which means you don't have to pay tax on your savings if your living permanently in aus. So surely if you don't disclose it how would you end up paying any tax ? Link to comment Share on other sites More sharing options...
Guest breezy Posted January 8, 2008 Share Posted January 8, 2008 Cool_Eyes The UK and Australia have a dual taxation agreement which means that the Inland Revenue and ATO talk to each other and pass on details of what accounts exist for individuals they are interested in. Not telling them is a risk and with the WWW enabling rapid sharing of data, I would be very cautious in hiding anything for the sake of a few quid interest. Breezy PS. Bob, can you answer the question from my last post - Thanks. Link to comment Share on other sites More sharing options...
Guest Cool_Eyes Posted January 8, 2008 Share Posted January 8, 2008 Really bloody hell might have to rethink that one ! It would be so much easier if the exchange rate shot up again been waiting for ages. So I have a year upon on entry after reading some posts ! Capital gains sounds worse than tax on savings. Any idea how much are both ? Link to comment Share on other sites More sharing options...
Guest breezy Posted January 8, 2008 Share Posted January 8, 2008 Any capital gain is treated as additional income and is subject to the income tax bands shown on the ATO website: Individual income tax rates Remember though that the gain is only the difference in profit made by interest or improved exchange rate and it is that amount that is taxed and not the principal amount. Breezy Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted January 8, 2008 Share Posted January 8, 2008 PS. Bob, can you answer the question from my last post - Thanks. Only if you give more information like your visa class and tax residency status and dates of arrival in Aust and the dates of property acquisition and disposal. Oh yes, and what I said earlier - if you (or anyone) wants advise you can rely on, pay for it - go and see a suitably skilled and registered professional. If you want details so you can credit my bank account, ask me to send a PM. Link to comment Share on other sites More sharing options...
Guest breezy Posted January 8, 2008 Share Posted January 8, 2008 Hi Bob Emigrating as PR LA120. Property bought 18 Dec 01. Will complete on sale after our arrival on 20 Jan 08. Understood we would be treated as Australian tax payers on arrival due to visa class. I'll take your bank account details, but look what happened to Jeremy Clarkson! BBC NEWS | Entertainment | Clarkson stung after bank prank :wub: Thanks Breezy Link to comment Share on other sites More sharing options...
Guest AnnieE Posted January 8, 2008 Share Posted January 8, 2008 I have jonst fixed a rate yesterday and feel pretty anxious about the whole thing. I know its not a great time but most people I have spoken to think sterling is only going to get weaker and if there is another interest rate cut on Thursday it will drop again. I only fixed part of our money and will need to bring over more but feel I will wait until rate recovers. I am interested about the fact I will need to pay CGT on the next lot I bring over. Cool Eyes. From what you are saying you dont pay any tax if you send if over before you arrive and it you send after some arrival the exchange rate the day you arrive is crucial ie if it has gone up you are liable for tax? Link to comment Share on other sites More sharing options...
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