U.K. ISAs

[MaroubraAndy]

Hi guys,

ive noticed a couple of posts on this subject but my question is slightly nuanced so didn’t want to take over any of the other threads.

Question is, if Im duel U.K. and Aussie citizen and have stocks and shares ISAs in the U.K. from my time living as a U.K. tax resident.  I then move to Oz and become an Aussie tax resident. I know I’m allowed to keep my isas but not contribute to them further. I also know I have to declare interest as part of my Aussie tax return.  However I’m wondering on what sorts of activity would constitute something I needed to declare?

I’m assuming all dividends would need to be declared and if I made a cap gain as a result of trading activity that would also require declaration. But what about unrealised gains, for example say I’ve held a tech stock for 10 years but don’t sell it thus the gain remains unrealised. Surely I wouldn’t have to declare unreleased cap gains on a yearly basis?

 

 

 

[Ken]

Capital gains are taxed when they are realised. Note that you get a 50% discount on gains on assets that you've held for more than a year. You would also get any tax that you had to pay in the UK on your foreign income as a tax offset but obviously because you use an ISA that would be zero. You would also only be taxed on the gain between becoming tax resident and realising the gain - so make sure you know how much those tech stocks are worth on the date you move!

Edited March 14, 2021 by Ken

[Marisawright]

18 hours ago, MaroubraAndy said:

what about unrealised gains

If they're unrealised then you don't have to declare them.

[MaroubraAndy]

On 10/02/2021 at 04:27, Fergie said:

Hi Maryrose02

ive thought of all those scenarios,  but I’m thinking unless I give it a go I’ll never know.  Have you no preference to Uk or Australia?  Being back in Uk what are the things you loved or hated that you’d forgotten about while living in Oz? 
I actually live about an hours drive from my oldest 2, (they live closer to Brisbane) I live on mount tamborine ( you will know the mountain if you live in surfers) as it’s cooler, I hate the humidity and intense heat down there, lol.  So it’s not just a pop down the road, it’s always a pre arranged visit either way. Doesn’t stop us seeing each other a couple of times a month. It’s beautiful up here, but with the Uk it’s a longing I just can’t get away from,  it’s scary because it’s been going on so long, about 13 years actually, I’m concerned in my head the Uk is the answer to everything and Australia the reason for everything, if that makes sense. When you’ve  struggled  with something for so long, in the end you go round in circles, should we, shouldn’t we, what if’s, will we love it/ hate it. The kids, the NHS when we get old, what happens when we are to old to travel, what if we don’t go back and I regret it as I get older and leave it to late. It’s all swirling round in my head everyday for over a decade. Hence the anxiety etc

 

    .  

Thanks guy, that all makes sense.