Jambos Posted November 24, 2012 Share Posted November 24, 2012 We are moving to Oz in Jan-2013 and we not likely to exchange our money until we are happy with the ex-rate or reach a frustration point of no return (which ever comes sooner). We are moving on a 176 Family sponsored Visa. (1) What are my saving options as a result of not being resident in the UK in terms of tax etc.? (Would want instant access) (2) If and when I exchange at a rate later that was better than the rate was when I left would I be liable to be taxed on the Delta? Any help / guidance would be much appreciated. Cheers Link to comment Share on other sites More sharing options...
NicF Posted November 24, 2012 Share Posted November 24, 2012 As you are not resident for tax in the UK you can register as a none tax payer and get your interest tax free. However I believe you are supposed to declare the interest earned on your Australian tax return so you would pay tax on it in Australia. In terms of options for savings accounts, well there aren't that many paying decent interest rates for instant access accounts. You sre best looking on one of the comparison sites for the best rates. You can sometimes get accounts that will pay up to 3.5% but these usually include a first year bonus and return to a rubbish rate at the end of the year. There is also the problem that a lot of places will not allow you to have an account if you are not resident in the UK. And I believe that you are liable for tax on the gain made due to the change in exchange rate. Please note though that I am not an expert and I am just giving you my understanding based on the advice I have been given (that I may have misundstood or that may have changed since). Link to comment Share on other sites More sharing options...
Jambos Posted November 25, 2012 Author Share Posted November 25, 2012 "There is also the problem that a lot of places will not allow you to have an account if you are not resident in the UK" What is the reason for this? Link to comment Share on other sites More sharing options...
Parley Posted November 25, 2012 Share Posted November 25, 2012 If you bring the money to Australia, the interest rates on savings are quite good. You will be able to get around 5.5%pa in an online savings account with someone like UBank (owned by NAB and therefore very low risk). Another option could be to bring the money over in stages say a quarter every three months. That will smooth out the exchange rate. Link to comment Share on other sites More sharing options...
NicF Posted November 25, 2012 Share Posted November 25, 2012 "There is also the problem that a lot of places will not allow you to have an account if you are not resident in the UK" What is the reason for this? No idea, but many of the accounts I looked at said they were only available to UK residents. Link to comment Share on other sites More sharing options...
Ken Posted November 25, 2012 Share Posted November 25, 2012 "There is also the problem that a lot of places will not allow you to have an account if you are not resident in the UK" What is the reason for this? Basically the banks are concerned that they'll get into trouble for breaching the money laundering regulations (the fines are pretty steep). Not opening accounts for non-residents reduces the statistical risk significantly. Brits who've emigrated are likely to be a very low risk but they get caught up because it's cheaper and easier to ban all non-residents rather than to examine them on a case by case basis. Link to comment Share on other sites More sharing options...
braidwood Posted November 25, 2012 Share Posted November 25, 2012 'And I believe that you are liable for tax on the gain made due to the change in exchange rate'. Sorry to butt in on the conversation but does anyone know any more about this? Does that mean that the gain is calculated on the exchange rate from the date you emigrated? Link to comment Share on other sites More sharing options...
happycat Posted November 25, 2012 Share Posted November 25, 2012 Hi I don't know if I've missed the point but we have a HSBC account and they know we are moving to oz in Jan 13 and haven't said anything about the savings we will still have in the UK Cathryn Link to comment Share on other sites More sharing options...
Ken Posted November 26, 2012 Share Posted November 26, 2012 Hi I don't know if I've missed the point but we have a HSBC account and they know we are moving to oz in Jan 13 and haven't said anything about the savings we will still have in the UK Cathryn I think you have missed the point. If you have an existing account you don't need to open a new one. Opening a new account is what is difficult after you've left the UK (and can't go into their branch and show them a utility bill that is less than 3 months old and all the other idiotic jumping through hoops you need to do nowadays). You will still be taxed in Australia on both the interest and the capital gain (if the FX rate moves). Link to comment Share on other sites More sharing options...
Ken Posted November 26, 2012 Share Posted November 26, 2012 'And I believe that you are liable for tax on the gain made due to the change in exchange rate'. Sorry to butt in on the conversation but does anyone know any more about this? Does that mean that the gain is calculated on the exchange rate from the date you emigrated? Yes, you have to pay tax on your realised capital gains - which does include those from FX gains. Link to comment Share on other sites More sharing options...
akiralx Posted November 26, 2012 Share Posted November 26, 2012 Yes, you have to pay tax on your realised capital gains - which does include those from FX gains. Yes, this is correct - though sadly if the rate is worse you cannot claim a capital loss (as usual...). To the OP, you can wait till the rate is better (maybe quite a few years...and it might get worse) - or bite the bullet and earn over 5% gross on your capital. You can do the maths as what the rate would have to move to to offset the lost interest, but I plumped for moving money over. Some migrants are also betting on waiting for house prices to rise before selling, and then waiting for the exchange rate to improve. I doubt they will win both those gambles. I am currently selling our house at about 10% lower price than when we left in 2009 (so no worries about CGT) - then I'll worry about the rate. My view is I want all assets out of the UK/Europe before the balloon goes up... Link to comment Share on other sites More sharing options...
Rupert Posted November 26, 2012 Share Posted November 26, 2012 "There is also the problem that a lot of places will not allow you to have an account if you are not resident in the UK" What is the reason for this? It is difficult to open a new account once you have left the UK. But there is no trouble at all with retaining an account you already have. Link to comment Share on other sites More sharing options...
hardtochase Posted December 4, 2012 Share Posted December 4, 2012 Barclays Bank have an account for expats, but it charges a monthly fee. Link to comment Share on other sites More sharing options...
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