TheGreatDane Posted December 12, 2013 Share Posted December 12, 2013 1. What is the max that can be transferred? 2. And does it need to be declared anywhere for tax purposes? Or declared to any authorities even if UK income tax has been paid? Regarding 2., assume not if it us UK income that has been previously taxed. Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted December 22, 2013 Share Posted December 22, 2013 I think John is away now for Christmas. I am sure there is no maximum amount that can be transferred and I know when we moved our house money we weren't asked to declare it on the moneycorp forms from what I remember Link to comment Share on other sites More sharing options...
newjez Posted December 22, 2013 Share Posted December 22, 2013 Are you resident in the UK or Oz, and for how long? Link to comment Share on other sites More sharing options...
Diane Posted December 22, 2013 Share Posted December 22, 2013 If you have been here a while, amounts over a certain level will trigger questions from the Aussie tax office. I think there must be a trigger amount but not sure what it is (possibly over about GBP 10k). You might be asked to show proof that it is nnot overseas earnings, or they will assume it is so and tax you accordingly. We moved some money over that was a gift from my Dad, and had to get a certified letter from him confirming this to assure the ATO it wasn't money we had earnt and should thus be taxed on. Hope that makes sense, it doesn't answer your question, I know, but hopefully will save you being unprepared for ATO questions and requests for proof. Link to comment Share on other sites More sharing options...
Alan Collett Posted December 22, 2013 Share Posted December 22, 2013 Hello Diane. You might be asked to show proof that it is nnot overseas earnings, or they will assume it is so and tax you accordingly. => Who advised you of this? We have had tax clients asked about the nature of certain incoming remittances (of significantly larger than $10k), and a suitable written response - not always with supporting documentation - has satisfied the Australian Taxation Office. Best regards. Link to comment Share on other sites More sharing options...
Diane Posted December 22, 2013 Share Posted December 22, 2013 Hello Diane.You might be asked to show proof that it is nnot overseas earnings, or they will assume it is so and tax you accordingly. => Who advised you of this? The Australian Taxation Office told me. We moved some money over that was a gift - they asked what it was - we told them it was a gift - they asked for a letter from the giftor confirming this, signed and witnessed. Which we got. They told me not through an agent but directly - that without that we would have been taxed on it as overseas earnings. Sounds like your clients may have been lucky! Link to comment Share on other sites More sharing options...
Alan Collett Posted December 22, 2013 Share Posted December 22, 2013 Sounds like your clients may have been lucky! => No, they had a registered tax agent acting for them! Best regards. Link to comment Share on other sites More sharing options...
TheGreatDane Posted December 22, 2013 Author Share Posted December 22, 2013 Are you resident in the UK or Oz, and for how long? I will be an Oz resident very shortly The AUD will correct further in 2014 so will transfer later when we get closer to $2 per £1 Link to comment Share on other sites More sharing options...
newjez Posted December 23, 2013 Share Posted December 23, 2013 I will be an Oz resident very shortly The AUD will correct further in 2014 so will transfer later when we get closer to $2 per £1 I'm not aware of any transfer limits. You may be subject to foreign exchange gains. Check out the ato website for more details. Also bear in mind there is no guarantee the exchange rate will improve. Think of it as a bonus if it does, but don't bet the house on it. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted June 1, 2014 Share Posted June 1, 2014 Just going to post a hypothetical scenario and question related to the original post. Mary and John emigrated with PR from UK to Oz in July 2013 having sold their house in the UK. They planned to rent in Oz for at least 6 months while they worked out the area and home they would like to buy. At the time they move the exchange rate is $1.50 to the £ so they decide to convert only that which they need to cover initial outgoings and leave the bulk of their money (say £1million) in the UK. By December 2013 the exchange rate is $1.90 to the £ and they have seen a property they like and transfer over all their money. By virtue of leaving this for 5 months they are $400,000 better off. Is this taxable as a gain in Oz bearing in mind they became Oz resident for tax purposes in July or is there a period of grace for transferring money over after emigrating? Link to comment Share on other sites More sharing options...
Alan Collett Posted June 1, 2014 Share Posted June 1, 2014 Hypothetical response: if Mary and John are going to realise that much of a gain they should consider paying for advice on which they can rely when completing their tax returns, particularly as there is no period of grace in which they are automatically exempt from Australian tax on foreign currency gains. Best regards. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted June 1, 2014 Share Posted June 1, 2014 Thanks Alan. Very unlikely that Mary and John would be so fortunate with their timing but I expect they will be seeking advice on this and a range of other matters at the appropriate time. Interesting that there is no automatic period of grace though as I understand that there is 6 months grace for QROPS pension transfers or perhaps that only covers the pension accretion and not exchange rate fluctuation. Link to comment Share on other sites More sharing options...
TheGreatDane Posted July 14, 2014 Author Share Posted July 14, 2014 So asking around over the past 6 months or so, you can transfer as much as you like with no questions asked. Obviously country of origin must not be on a sanctioned list. Link to comment Share on other sites More sharing options...
Marisawright Posted July 14, 2014 Share Posted July 14, 2014 Hypothetical response: if Mary and John are going to realise that much of a gain they should consider paying for advice on which they can rely when completing their tax returns, particularly as there is no period of grace in which they are automatically exempt from Australian tax on foreign currency gains. Best regards. So are you saying that if someone leaves money sitting in a UK bank account and it increases in value (in Australian dollar terms), they'd be liable to pay tax on that gain? Or is it only if they actually convert the money and bring it to Australia? Link to comment Share on other sites More sharing options...
Alan Collett Posted July 15, 2014 Share Posted July 15, 2014 So are you saying that if someone leaves money sitting in a UK bank account and it increases in value (in Australian dollar terms), they'd be liable to pay tax on that gain? Or is it only if they actually convert the money and bring it to Australia? No, I'm not saying that. Professional advice is sensible and prudent if the monies involved are significant. Best regards. Link to comment Share on other sites More sharing options...
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