Moving Money from UK to OZ

[Guest Coolbythepool]

Hi all - my wife & I have now got our visas to emigrate, hoorah!! We are coming to Oz in March to activate the visas and do a recy for a month as well as have a good holiday.....The first question we have is regarding moving money from the Uk to Oz. We have read various and what seem conflicting views which has confused us. When finally emigrating, can we not leave money/property back in the Uk without incurring large tax implications? Also the costs of moving money from the UK to Oz seem very expensive unless you move your money within 12 months of emigrating, is that true? Not wanting to sound too pesimistic, but if things do not work out, we do not want to be penalised in any way. I have spoken to my bank (HSBC) and they have confirmed charges are not too high, so what have you all done when moving your money between countries and what charges did you incur?

 

Thanks everyone.....

 

Neil & Michelle

[Guest Bolton2Brisbane]

Hi,

 

We opened a new account with the HSBC and moved the proceeds from the sale of our house into a high savers account. We are not going to touch this for a good year just to ensure that we are doing the right thing in moving to OZ.

 

We will not be eligable for tax within the UK as we are classed as "non dom", basically this means that we will not be resident within the UK from April this year (new tax year) the bank will give you the form to fill in.

 

I'm not to sure on funds gained from property ie: if you still own one and are getting an income from this (rent). The only thing which you need to be mindful about is the current exchange rate. People are predicting that this will go down even further, but unfortunatley nobody in the world can predict what will happen.

 

If you have a considerable amout to change then this needs to be weighed up against what you would lose with the exchange rate and what you might gain in a high interest savings account within OZ.

 

Good luck....

[Guest michele'n'michael]

Hi we're emmigrating to Oz March this year & as the rates sooooooooooo crappy at the mo' we've put most of the money from the sale of our house in a Barclays offshore acct cos we'were getting hammered for the tax on the interest!! I'm now watching the rates like a hawk to try to get the best deal for the remaining £40k. Even though the interest rates in Oz are good we'll still lose appx £5-8k due to the poor exchange rate & the weak £££.

Michele x

[Guest Pinhead]

I use HIFX for my currency transfers. You get a much better rate than through a bank usually 0.5% from spot. If you transfer the money to them by BACS you won't incurr any fees whatsoever.

You do need a Oz bank account to transfer them into though.

 

I don't know where you got 'Also the costs of moving money from the UK to Oz seem very expensive unless you move your money within 12 months of emigrating'. The time you move it makes no difference as long as you set everything up right as a non resident (e.g bank interest paid gross).

 

Estate agents are required to deduct tax at the basic rate on rental income unless you get a certificate from the IR.

[Guest darren_and_karen]

Don't forget as an aussie resident, you'll need to pay tax on foreign income, so say you've got £100k in UK, earning about £450 a month gross interest, you'll need to declare this in Aus and pay tax. Interest rates are higher in Aus, so you might make more money on a high interest savings account here? Just a thought. I know the exchange rate is rubbish, wish we'd moved our money with us back in Nov, so we're watching daily for it to get high enough to move over. We've used HIFX, no charge, good service, and the rate is much better than banks. eg, banks last week were 2.09, HIFX was 2.13. I know it doesn't seem much but on high amounts it does make $$$$ difference. Also check out Ozforex they sometimes offer more than HIFX.

[Guest michele'n'michael]

We used UKforex & got a better rate than HIFX.Also we were able to place a limit order for 30k where HIFX minimum for a limit order was 50k.

[Guest Sharon & Mike]

Anyone know about the other way around, transfers from Oz to UK as OH will have to do transfers until we are able to come out there later on in the year.

 

Thanks

 

Sharon

[Guest michele'n'michael]

Anyone know about the other way around, transfers from Oz to UK as OH will have to do transfers until we are able to come out there later on in the year.

 

Thanks

 

Sharon

 

Do you not just phone up Ozforex(the Oz equivalent of UKforex) & get rates. At least the exchange will work in your favour at the mo!! They'll take you thro' what to do.

Good luck xx

[Guest Pinhead]

Anyone know about the other way around, transfers from Oz to UK as OH will have to do transfers until we are able to come out there later on in the year.

 

Thanks

 

Sharon

Hifx have an office Sydney.

[Guest Liam]

There are absolutely no restrictions on moving your money from Oz to the UK or Uk to OZ. The banks or exchange specialist companies like HIfx.com.au (speak to Hamish Thompson in the Sydney office) do have Anti-Money Laundering and Counter Terrorism Funding rules to work by and they require that they check your id and they ask the source of funds.

 

So unless you are a major drug dealer moving your ill gotten gains you can move as much as you want whenever you want.

 

regards

 

Liam

[Guest Huffylover]

Me too! I have just registered with Ozforex and Hifx... really not sure which to go with... most people seem to have used Hifx ...i just want to use the most reliable and quickest of the two.

 

I've lost quite a few k since January! Wish I'd seen the crazy drop coming... hope we get back to $2.20 at least???

 

Anybody got any stories good or bad of these exchange companies? Ozforex, Voltrex, Hifx, XE.Com??

 

I just need to go with one company so I can sleep instead of watching the puter screen... getting square eyes lol

[Guest Pinhead]

Me too! I have just registered with Ozforex and Hifx... really not sure which to go with... most people seem to have used Hifx ...i just want to use the most reliable and quickest of the two.

 

I've lost quite a few k since January! Wish I'd seen the crazy drop coming... hope we get back to $2.20 at least???

 

Anybody got any stories good or bad of these exchange companies? Ozforex, Voltrex, Hifx, XE.Com??

 

I just need to go with one company so I can sleep instead of watching the puter screen... getting square eyes lol

I use Hifx & have never had any problems. Typically you get 0.5% spread on spot rate with no charges.

[Guest Windsor2]

Hi all,

 

I just thought i'd let you know that we could be seeing a lot more volatility over the coming days and weeks due to the issues in America with the Bear Sterns Investment Bank. I know this isnt great news to hear, but it highlights how important it is to start getting a strategy in place for moving your funds over.

 

Impossible to say which way the markets will go and how they will react, but the £ vs $Aussie has moved about 5 cents already today!!

 

Here's a couple of links that try to explain what is going on:

 

BBC NEWS | Business | Markets slump on banking worries

 

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3558517.ece

 

 

I hope these help, and if you want to discuss your options in more detail then please get in touch.

 

Cheers, and good luck!

 

Richard, HiFX.

[koalakids]

Don't forget as an aussie resident, you'll need to pay tax on foreign income, so say you've got £100k in UK, earning about £450 a month gross interest, you'll need to declare this in Aus and pay tax. Interest rates are higher in Aus, so you might make more money on a high interest savings account here? Just a thought. I know the exchange rate is rubbish, wish we'd moved our money with us back in Nov, so we're watching daily for it to get high enough to move over. We've used HIFX, no charge, good service, and the rate is much better than banks. eg, banks last week were 2.09, HIFX was 2.13. I know it doesn't seem much but on high amounts it does make $$$$ difference. Also check out Ozforex they sometimes offer more than HIFX.

 

Hi folks,

 

Can anyone help? I've been reading this thread but am still a little confused about moving money from the UK to Oz after having taken residence in Oz (STNI visa).

 

If I was to leave the bulk of my money in a UK savings account here in the UK (& continue to pay UK tax on it) whilst waiting for the exchange rate to improve, can I then bring it across later than a year or longer without any penalties. Surely I wouldn't have to declare an 'overseas income' if I am paying UK tax on any interest earned?

 

I'm just thinking ahead as the rate may not improve for well over 12 months or even longer....18 months plus......who knows????

 

I'd be grateful for your help with this one.

 

Cheers,

 

Steve.

[koalakids]

Hi all,

 

I just thought i'd let you know that we could be seeing a lot more volatility over the coming days and weeks due to the issues in America with the Bear Sterns Investment Bank. I know this isnt great news to hear, but it highlights how important it is to start getting a strategy in place for moving your funds over.

 

Impossible to say which way the markets will go and how they will react, but the £ vs $Aussie has moved about 5 cents already today!!

 

Here's a couple of links that try to explain what is going on:

 

BBC NEWS | Business | Markets slump on banking worries

 

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3558517.ece

 

 

I hope these help, and if you want to discuss your options in more detail then please get in touch.

 

Cheers, and good luck!

 

Richard, HiFX.

 

Hi Richard,

 

Thanks again for what is another very informative post from you.

However, drawing on your vast experience in this field, do you think that it's going to be a long while, ie. 12, 18, 24 months before the rate will ever recover to the 2.37 mark we saw back in Nov 07? I appreciate the the world economy is in turmoil but we've been here before and will surely bounce back....won't we!? The financial markets are often cyclic but this looks a little more serious wouldn't you say (understatement of the year)?

 

I'm just not happy about exchanging at 2.15-17....it's not the dream start to a new life in Oz that we'd planned on.

 

I'd be grateful for any wisdom you can offer.

 

Kind regards,

 

Steve.

[Guest Windsor2]

Hi Steve,

 

Thaks for your comments, and here comes my wisdom....

 

I hate to repeat myself but the main issue we are facing at the moment is the real uncertainty in the financial markets. The hot news at the moment is obviously centred around Bear Sterns in the US and whether this is just the start of what could be a domino effect, and what repercussions this will have in the UK. Even the so called "experts" admit they are unsure of the current plight of the UK economy and whether we have the resources to weather the storm.

 

Australia on the other hand is booming, and has been thus far sheltered from the credit crunch through its strong ties with Asia. However, wind the clock back to August when we saw the beginning of the financial woes in the US, and the dollar jumped to $2.56 in about 3 days, proving anything can happen with currency markets.

 

Currency is a commodity, just like oil and gold etc, and people buy and sell it to make profit. These speculators account for about 97% of the market, and unfortunately (and rather selfishly i may add) dont really care about migrants hoping to start a new life in Australia with as many dollars as possible. They will make money if the $ is weak, or if it is strong - as long as it is moving then they will be happy.

 

Going back to the August highs, therein lies the issue - many of you may have only started looking at the rates around then and as such have a slightly disjointed view of the market - why would you want to trade now at 2.20 when you were budgetting at 2.40/2.50?! However, for the last 18 months the $ has been getting progressively stronger, and the £ progressively weaker. The more they raise their interest rates, the more attractive an investment it becomes, and it seems that every day we are reading more and more bad news from the UK.

 

But are the rates the only reason you are moving to Australia? No.

 

Unfortunately what has gone has gone, and you now need to start planning and getting a strategy that will best fit your situation. It is a very personal decision as will depend on what funds you have available now, and how much of a gamble you are willing to take.

 

Those who decide to gamble may leave it and transfer their funds if and when they hit their desired rate, or adopt a hedging strategy and move it over in chunks. Others will cut their loses, take advantage of the high ineterest rates in OZ and giev themselves comeplete peace of mind to be getting on with the really important things - ENJOYING YOUR NEW LIFE!!

 

You are the lucky ones, the ones who qualify to get into Australia and have made the steps to do so. Thousands dont, and are stuck in the UK.

 

I hope this helps Steve - its difficult to convey all the aspects of this very complex issue in a forum post, and everyones situation is different, so please dont hesitate to call us if you want to go over the options in more detail.

 

And good luck to the rest of you as well - i will keep you updated on the market moves as they happen.

 

Cheers,

 

Richard.

 

p.s. i was out of the office for 24 hours, and it has since moved 5 cents.....in your favour! 2.21 as i type. What do i know hey? Fingers crossed.

[koalakids]

Hi Richard,

 

Thank you for taking the time to explain things in great detail. As you mentioned, we will have to come up with a strategy that is acceptable for our financial situation. I feel a little silly to be honest because you rang me back in Nov 07 and asked if I'd consider 2.37 and I thought it would go up! If only I hadn't mis-placed my crystal ball that week!!

 

Thanks again.

 

Kind regards,

 

Steve.