2bpepperrogers Posted June 20, 2014 Share Posted June 20, 2014 Dear all, We have our 189 PR visa and are planning to move January 2016. We are spending the next 18 months living with family and saving saving saving! We have a small inheritance currently which we are thinking of putting in an ISA fixed for 3 years, and may well inherit some more in the next year or so. My question is: Is it OK to have ISAs in the UK for the inheritance money to earn the best interest or will we have to declare this/close it when we leave/get massacred on moving the saved money across to Aus when we are ready to buy a house in 3-4 years time? Can we leave this ticking away earning interest in the UK after we have moved? We are hoping to save enough from our wages while living with the parents to cover the move, so can leave this inheritance money untouched in a fixed term. Hope this makes sense! I'm very clear on everything apart from the finances side of migrating, any help will be greatly appreciated Claire Link to comment Share on other sites More sharing options...
ekf Posted June 20, 2014 Share Posted June 20, 2014 As soon as you are not resident in the UK, your ISA will simply become a normal account and you will be required to declare the interest in Australia and pay tax on it. You can only receive the tax benefits an ISA allows if you are a uK resident for tax purposes. You can however complete a form so the bank will pay you the interest gross so you can pay the required tax in Australia. Link to comment Share on other sites More sharing options...
2bpepperrogers Posted June 20, 2014 Author Share Posted June 20, 2014 ah ok, so we might be best getting a fixed rate for 18 months instead, and then taking everything with us in one go? Link to comment Share on other sites More sharing options...
ekf Posted June 20, 2014 Share Posted June 20, 2014 You can keep money in the UK when you move and leave it there or bring it over as you need it or as the exchange rate improves. You don't need to bring it all over at at once. Link to comment Share on other sites More sharing options...
FrankFinancial Posted June 23, 2014 Share Posted June 23, 2014 As EKF advises it makes no tax difference in tax terms as you are assessable on your worldwide income as a permanent Australian resident. Link to comment Share on other sites More sharing options...
Marisawright Posted June 24, 2014 Share Posted June 24, 2014 Dear all, We have our 189 PR visa and are planning to move January 2016.... Is it OK to have ISAs in the UK for the inheritance money to earn the best interest or will we have to declare this/close it when we leave/get massacred on moving the saved money across to Aus when we are ready to buy a house in 3-4 years time? Can we leave this ticking away earning interest in the UK after we have moved? As others have said, as soon as you become non-resident your ISA will just become an ordinary account and be subject to tax. So, personally I would be putting it in an ISA until you move (so you get the tax benefits now). Then shortly before you move, look to see whether you can get better interest somewhere else, and move it if necessary. I wouldn't be moving it to Australia until you need it. After all, you may get here and discover it's not for you. If you move all the money over and then have to move it back again, you could lose a lot of money on exchange rates. To give you an example - we moved in 1985 when the dollar was worth 89p. We brought all our savings with us. Within 6 months it had dropped to 45p. So if we'd decided we wanted to go home, we'd have lost half our savings! Of course it's always possible the exchange rates will go the other way for you, and you could make money, but it's a big risk. So I'd say, don't touch it till you have to. Link to comment Share on other sites More sharing options...
2bpepperrogers Posted June 24, 2014 Author Share Posted June 24, 2014 Thanks for all your help everyone. We've got meetings with 2 different banks here in the UK today, will see what they can offer us in terms of interest rates and international banking in 18 months time. HSBC look pretty good as they can set us up with credit ratings etc in Australia. Link to comment Share on other sites More sharing options...
Peach Posted June 24, 2014 Share Posted June 24, 2014 HSBC look pretty good as they can set us up with credit ratings etc in Australia. Credit ratings don't work the same way as the UK, everyone starts with a 100% score and loses points for paying late/defaulting. Really is not a benefit from HSBC. Link to comment Share on other sites More sharing options...
2bpepperrogers Posted June 24, 2014 Author Share Posted June 24, 2014 Ok that's useful to know! Link to comment Share on other sites More sharing options...
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