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Capital Gains Tax on money transfers


MattFranklin

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Apologies in advance as I'm sure others have asked similar questions in the past but the search function on the forums seems to return zero results for me.

 

Unfortunately I lost out on the exchange rate when I moved over cash from the UK earlier this year. Does anyone know if I can claim the loss against tax.

 

I moved to Oz just under 3 years ago and I left most of my cash in the UK. 9 months ago I needed the cash to pay for a new house so transferred it at a very bad rate relative to the rate when I moved here.

 

At the time of moving I recall that I was told that if the exchange rate went up whilst I was in Oz I could be liable for CGT related to the increase in value. I also receall that the difference would be calculated based on the difference between the date that I moved to Oz and the date the money was transferred. Is this still the case and does it apply so long after I moved to oz? Since the exchange rate fell can I claim the loss?

 

Cheers

 

Matt

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Good luck with working through that, Matt. In the UK a CGT loss is only of any use if you have a gain to offset it against now or in the future as you can carry the loss forward. If Oz rules on CGT are similar then unless you expect to realise some gains then claiming a loss would be academic.

 

David

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Good luck with working through that, Matt. In the UK a CGT loss is only of any use if you have a gain to offset it against now or in the future as you can carry the loss forward. If Oz rules on CGT are similar then unless you expect to realise some gains then claiming a loss would be academic.

 

David

 

Hello David.

 

In Australia forex losses are distinct from CGT losses in that they are generally tax deductible against the taxpayer's income.

 

Best regards.

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Hello David.

 

In Australia forex losses are distinct from CGT losses in that they are generally tax deductible against the taxpayer's income.

 

Best regards.

Are capital gain losses only able to be offset against capital gains in the same category?

 

foreign exchange v interest bearing?

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  • 2 months later...

Turns out that Forex rules only apply to business transactions. Since the money was personal in nature, i.e. house and car, I've been informed that the loss cannot be claimed. Seems like I chased a rabbit down a hole and hit a dead end.

 

Hi Matt.

 

As with so many things tax related, it all depends.

 

If you want the gory detail ... http://www.ato.gov.au/Business/Forex/In-detail/

 

Also: http://www.ato.gov.au/Business/Forex/In-detail/Common-transactions/Foreign-exchange-%28forex%29--foreign-currency-denominated-bank-accounts/

 

Best regards.

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