offshore or australian account and tax implications

[Guest jeffandmichelle]

i dont know what the implications might be but on selling shares in a business, part of the deal is to pay the money into an overseas account

question is can i open an aussie account that would give good interest without having to physically go there and also would i be taxed such as income or capital gains upon this investment into oz.

if i get this money paid into a uk account i get nabbed for £200k tax

ive already got a bill coming for £100k for 2006 payable by april 2007

ill have to swallow that one as i dont think ill be able to swing it into oz before next sept.

can the uk gov seize assets and finance from an oz bank account as they are part of the commonwealth

are any questions asked by anybody as to where the money has originated

i hope this doesnt sound dodgy but ive got some property dotted around Europe that im looking to sell before or just after moving to oz

just dont want to get stung on a lifetimes sweat blood and tears

many thanks

jeff

[Guest spray21]

You can open an account from the UK, but it seems you have to be physically present with ID in Australia to withdraw any funds. Should be ok to pay in tho.

Not sure about the tax implications... I would think that as you are UK resident you might be liable for UK tax, but I am far from an expert - you need an experienced international FA. On the plus side, if you're talking about 200k tax then there must be some pretty pennies left over afterwards, so at least you won't be desitute whatever happens. (If I can think of a way to save you money, do I get a cut?! :wink:)

[restfamily]

I would get some good advice. I found Global Destiny

 

http://www.globaldestiny.co.uk/default.htm

 

very helpful and they gave me all the info I needed to understand re buying / selling etc. before / after you move.

 

The UK tax office are also very helpful and are quite happy to talk you through this tyoe of scenario and they do not even ask your name, but this is only the UK side of the story.

 

I think I remember that gains are rest to zero on the day you emigrate, so it maybe worth waiting to sell until you move, but get this checked out because there are some very specific rules.

[Guest jeffandmichelle]

thanks for your quick replies

i will open an account here first, thanks for that

that website is just what im looking for

its amazing how much money its possible to save with the right advice

i had to sack my accountant recently as he never gave any advice until after the horse had left the stable

when i complained about the amount of tax bill i had coming yet again, he said if you asked for interim accounts we could have lost that money in a pension

i said if i knew what an interim account was and what it was for i would have done but it was never offered or explained

and for £5000 a year i would have expected more but maybe im wrong but its another lesson learned, the hard way

thanks again fellas

[Alan Collett]

Jeff,

 

Your income tax and capital gains tax liability in the UK and Australia is likely to be a function of where you are personally tax resident and ordinarily resident, not where the bank account is located.

 

It may also be a function of your Australian visa status given changes to Australian taxation law affecting "temporary tax residents" effective from 1 July 2006:

http://www.gomatilda.com/news/article.cfm?articleid=374

 

There are some free tax factsheets here if you are interested:

http://www.collettandco.com/factsheet.cfm

 

Feel able to contact me directly if you would like some further guidance.

 

Best wishes for a Happy Xmas.

[Guest jeffandmichelle]

Hi allan

ive applied for some of the information from your website looks like what will be very useful,

must admit some of it looks over my head

i found out yesterday that if we sell one of our overseas properties within the next few years we get stumped for 40% tax as there is a 4 year law

but if we hang on to it for another few years will we then get stumped on the sale by the Oz government when the funds are transfered to Oz

its all a minefield out there trying to not step on a mine of tax

if we dont sell anything but just rent out our uk property and overseas property we pay tax in the country where the property is based and funds collected then pay tax in Oz also?

ps happy new year

[Alan Collett]

I'm afraid I don't recognise the comments you are making, Jeff. What 40% tax are you referring to if you dispose of your property/ies? What country is charging the tax?

 

Also, the remittance of funds to Australia is not taxable. However, if you retain non-A$ currency as a tax resident of Australia and then sell the currency to (say) buy A$'s you can trigger a tax position under Australia's capital gains tax provisions, or the relatively new forex tax provisions.

 

As to the taxation of rental income - it is likely to be principally a function of your Australian visa status ("temporary tax residents"are now exempt from Aussie tax on overseas derived investment income and capital gains), where you are tax resident, where the property is located, and the terms of any relevant tax treaties.

 

If you would like me to look at your situation and to comment regarding my fee for advising formally please feel able to send me an email.

 

Best wishes for a Happy Xmas!

[Guest jeffandmichelle]

hi alan

thanks for the replies

yes the tax is for disposing of a villa in turkey within a 4 year period of ownership, but i have recently found out that the tax is only on the difference between a purchase and sale price so thats not so bad

my main problem has been the sale and disposal of my business, part of the agreement was that the funds would be transfered into an overseas account, which i presume would be ok for me but my business partner is not leaving the uk so i was gonna have all the funds transfered then give him half back as a gift, im not sure if this falls under the same category as inheritance tax for him whereas you can have up to £250k without loss. otherwise it would seem unfair to him,

i will contact you after this xmas break as i have all the paperwork to deal with for the business sale and also the visa and her indoors has got me putting in a new bathroom in our house that we will either sell or rent in a few months time

happy new year