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RichC

Tax implications, savings and moving money

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Hello i would appreciate some advice.

My partner and i moved to QLD in February from the UK and we have permanent residency status (we love it)

Annoyingly we moved out shortly after Brexit when the Pound had massively dropped in value so only brought enough money over to get started and get on the property ladder. I do feel as though the Pound will regain some of its former strength eventually but i wouldnt be surprised if it takes another 3 years or so 

I have substantial savings just sat in a bank in the UK earning less than inflation and some stocks and shares held within ISA's which i can no longer contribute to and maximise as im no longer living in the UK, plus some rental properties.

I have been waiting for a Bear market or at least a market correction (surely it must be coming soon !) to invest the money sat in the bank in three or four low cost unmanaged index trackers probably with Fidelity.co.uk (who i have my ISA's with) to capitalize on the cheap stock prices then hopefully enjoy the next rise in the markets by which time i am hoping the Pound will have gained some strength against the Dollar.

At this point in the future i would hopefully be able to move some or all of the money over to OZ to use here or just invest in an Ozzy fund provider for future retirement.

What im not sure on is the potential Tax implications on profits made on those shares and any issues regarding timing of moving money over to OZ.

Im looking to make my savings and assets work for me but and be efficient as possible but dont want to fall foul to Tax Issues like being taxed in both countries  or paying more Tax than necessary.

 

I dont know if anyone has been in a similar situation but all advice is welcome.

 

Thanks

Richard  

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Why are you expecting a market correction?  Shares in the main tracker funds were undervalued previously so not massively overvalued now in my view.

My understanding is that your worldwide income must be declared on your Aussie tax returns showing any tax deducted at source (so there is no double taxation).

It sounds like you may benefit from financial advice and an accountant with experience of both Australian and UK tax if the sums are substantial.

We are similarly in limbo although we don’t own any UK property.  I am not feeling very positive about the GBP/AUD exchange rates though who knows in 3+ years.  We have shares in Fidelity UK funds, stocks and shares ISAs and Premium Bonds.  Managing the funds from Australia has become ever more problemmatic and indeed they will no longer accept new investments from us as we are in Australia and they need signed letter instructions for any disposals now.  Better check with them as you will have the same issue.  I get the distinct impression that they would rather not deal with us at all now due to regulatory changes relating to overseas investors.


Timeline: 309/100 Sent 7/8/13, Money Taken 9/8/13, CO appointed 3/9/13. Med 3/12/13. Police check 4/12/13. VISA GRANTED 8/4/14, Subclass100. Recce August 2014. Arrived 30 July 2015.

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Hi Gbye grey sky

Im just expecting a correction as historically there are corrections averaging once a year at roughly 10% drop in total market value which did not happen this year that i can see, and a Bear market comes roughly every 4-5 years and its been 7 since the last one. Im not wishing for another recession to hit but its a great time to buy more shares if there is the opportunity.

Great i hope that is the case regarding the double taxation as i think i must have miss read something in the past saying something to the contrary which scared the life out of me!

I agree i think ill have to see a professional (open to recommendations) but just want to go armed with as much knowledge as possible.

Regarding Fidelity, i am able to swap index funds  by closing an existing one and moving total stock/money into a new fund  all online all still within the ISA, but i have not tried to buy into a brand new fund with cash savings since being in OZ so that could be interesting.

If you by chance still have an active HSBC uk account, they are open to trading individual stocks if you open a share dealing account. I dont often do it myself as i prefer the index fund route. 

 Thanks for the advice

 

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I haven’t been able to trade fidelity funds online since moving overseas in 2015 and Fidelity wrote to me last month to say that I can no longer....

make any new investments

have investment income reinvested

Switch money from one investment to another

Do they know you are now overseas because they tell me that these new restrictions now apply to all overseas investors?

For these reasons I see little alternative but to reluctantly start to divest my investments with Fidelity this year but options seem distinctly limited though even that requires a letter by snail mail (or fax - which I don’t have).  My UK savings account only pays 0.25% interest so not worth moving it there either.

 


Timeline: 309/100 Sent 7/8/13, Money Taken 9/8/13, CO appointed 3/9/13. Med 3/12/13. Police check 4/12/13. VISA GRANTED 8/4/14, Subclass100. Recce August 2014. Arrived 30 July 2015.

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Hi Richard.

As a permanent visa holder who is a tax resident of Australia you are subject to tax in Australia on your worldwide income and capital gains.

The capital gain (or loss) on the future disposal of a GBP investment owned when you became a tax resident of Australia is computed with reference to the AUD equivalent, as translated using the rate of exchange on the date you became a tax resident of Australia.

Hope this helps for starters.

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Gbye Grey Sky

After reading your post i checked my Fidelity personal details, and for some reason they still have my Uk address listed even though i have told them i now live in Oz.

I will be contacting them shortly and will let you know if they tell me anything different but i imagine i will be in the same boat as yourself...

If that is the case that is incredibly frustrating as ive already incurred some pretty hefty costs getting established in OZ and now all assets and cash is stuck in limbo.

 

As for finding a new investment vehicle in the UK untill a better exchange rate hopefully happens, property, land, bonds and gold look bleak and the only thing i could think of was something like funding circle but the same rules may apply.  

How come you still have your investments held over in the uk when you moved to OZ in 2015 ?  

Best Regards

 

 

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Hi Alan Collet

Thanks for the info.

Does that mean i just need to only pay tax on that world wide capital gain here in OZ  at the end of Ozzy tax year or will i also be liable back in the Uk also ?

Best regards

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11 minutes ago, RichC said:

Hi Alan Collet

Thanks for the info.

Does that mean i just need to only pay tax on that world wide capital gain here in OZ  at the end of Ozzy tax year or will i also be liable back in the Uk also ?

Best regards

If you are no longer a tax resident of the UK you can reasonably proceed on the basis that no CGT is payable in the UK on the disposal of an investment, unless the investment is residential property in the UK.

This said, watch the UK's CGT anti avoidance provisions,  particularly if a resumption of tax residency there is possible within 5 years of your original departure.

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Hi  Gbye grey sky

I may have a fix for you.

I am just in the process of setting up an account with an off shore trader Internaxx (There are other companies such as SAXO) who are based in Luxembourg and seem like they are willing to give an account to someone in our situation.

I will be looking to set up several ETFs to get my savings working and hopefully if Sterling improves in the future move some over to OZ. If you take a look let me know your thoughts as id be interested in a second opinion.  

 

Rich

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On 05/01/2018 at 17:39, RichC said:

Gbye Grey Sky

After reading your post i checked my Fidelity personal details, and for some reason they still have my Uk address listed even though i have told them i now live in Oz.

I will be contacting them shortly and will let you know if they tell me anything different but i imagine i will be in the same boat as yourself...

If that is the case that is incredibly frustrating as ive already incurred some pretty hefty costs getting established in OZ and now all assets and cash is stuck in limbo.

 

As for finding a new investment vehicle in the UK untill a better exchange rate hopefully happens, property, land, bonds and gold look bleak and the only thing i could think of was something like funding circle but the same rules may apply.  

How come you still have your investments held over in the uk when you moved to OZ in 2015 ?  

Best Regards

 

 

Mainly because of the CGT position at that time and I did not have any need for the money as it is our retirement fund essentially.  We did bring the money over from the saleof our house in UK in 2015 - and got an excelkent exchange rate.

Brexit then happened, the pound nosedived, so I have allowed things to drift.


Timeline: 309/100 Sent 7/8/13, Money Taken 9/8/13, CO appointed 3/9/13. Med 3/12/13. Police check 4/12/13. VISA GRANTED 8/4/14, Subclass100. Recce August 2014. Arrived 30 July 2015.

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2 hours ago, RichC said:

Hi  Gbye grey sky

I may have a fix for you.

I am just in the process of setting up an account with an off shore trader Internaxx (There are other companies such as SAXO) who are based in Luxembourg and seem like they are willing to give an account to someone in our situation.

I will be looking to set up several ETFs to get my savings working and hopefully if Sterling improves in the future move some over to OZ. If you take a look let me know your thoughts as id be interested in a second opinion.  

 

Rich

I will have a look though I must admit I abhor complexity in my financial affairs so my preference would be having my investments in Oz.


Timeline: 309/100 Sent 7/8/13, Money Taken 9/8/13, CO appointed 3/9/13. Med 3/12/13. Police check 4/12/13. VISA GRANTED 8/4/14, Subclass100. Recce August 2014. Arrived 30 July 2015.

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