julietina Posted September 27, 2022 Share Posted September 27, 2022 Hi there Wondering if someone can advice me on the following. I am moving back to the UK in the next few weeks and I have read some where on this site that transferring savings back to the UK will not be taxed. My question is. Do I have to transfer all my money to the UK in one go to avoid paying tax, or can I transfer in dribs and drabs making several payments. I’m not quite ready to transfer all my money yet but wanted to take advantage of the low pound against the dollar but I am worried I would be taxed if I make the transfer several times. Quote Link to comment Share on other sites More sharing options...
Parley Posted September 27, 2022 Share Posted September 27, 2022 Shouldn't make any difference. Do it as often as you want. Quote Link to comment Share on other sites More sharing options...
rammygirl Posted September 27, 2022 Share Posted September 27, 2022 Your savings are post tax so no worries on that score. Your super on the other hand will be taxed in the UK unless you can take it before you leave. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted September 28, 2022 Share Posted September 28, 2022 23 hours ago, julietina said: Hi there Wondering if someone can advice me on the following. I am moving back to the UK in the next few weeks and I have read some where on this site that transferring savings back to the UK will not be taxed. My question is. Do I have to transfer all my money to the UK in one go to avoid paying tax, or can I transfer in dribs and drabs making several payments. I’m not quite ready to transfer all my money yet but wanted to take advantage of the low pound against the dollar but I am worried I would be taxed if I make the transfer several times. You won't be taxed on the transfer. The only thing to consider is that if you leave your money in a bank account in Australia for any length of time, the bank will deduct withholding tax because you're now a foreigner. Quote Link to comment Share on other sites More sharing options...
Cup Final 1973 Posted September 28, 2022 Share Posted September 28, 2022 17 hours ago, Marisawright said: You won't be taxed on the transfer. The only thing to consider is that if you leave your money in a bank account in Australia for any length of time, the bank will deduct withholding tax because you're now a foreigner. I haven’t heard of withholding tax Marisa. When is this applied? We left in May 2021 but I still have a bank account in Australia with quite a large amount in it. Quote Link to comment Share on other sites More sharing options...
Parley Posted September 28, 2022 Share Posted September 28, 2022 3 hours ago, Cup Final 1973 said: I haven’t heard of withholding tax Marisa. When is this applied? We left in May 2021 but I still have a bank account in Australia with quite a large amount in it. It doesn't affect the principal only the interest. I a customer doesn't provide their TFN to a bank the bank is required to withhold tax at the top marginal rate against any interest earned. This is to ensure the interest is declared/autofilled on the customer's tax return. 1 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted September 28, 2022 Share Posted September 28, 2022 3 hours ago, Cup Final 1973 said: I haven’t heard of withholding tax Marisa. When is this applied? We left in May 2021 but I still have a bank account in Australia with quite a large amount in it. I think I used the wrong terminology for what I meant . Since you provided a TFN, they may not have noticed that you're no longer a legal resident. When they do notice, they're obliged to deduct tax at the foreign resident's rate. 1 Quote Link to comment Share on other sites More sharing options...
rammygirl Posted September 29, 2022 Share Posted September 29, 2022 As far as I remember you need to notify the bank you are offshore, usually the change of address should trigger it but not always! Banks are obliged to deduct a withholding tax of 10% from any interest on the account, if this is your only Australian income no need to file an ATO return. Any tax paid in Australia can be set against UK tax return, but as many savings are no longer taxed in UK not sure if it can be set against other earned income. Your balance is not taxed just the interest earned, which until recently has been diddly squat! 2 Quote Link to comment Share on other sites More sharing options...
Ken Posted October 1, 2022 Share Posted October 1, 2022 (edited) On 29/09/2022 at 10:34, rammygirl said: As far as I remember you need to notify the bank you are offshore, usually the change of address should trigger it but not always! Banks are obliged to deduct a withholding tax of 10% from any interest on the account, if this is your only Australian income no need to file an ATO return. Any tax paid in Australia can be set against UK tax return, but as many savings are no longer taxed in UK not sure if it can be set against other earned income. Your balance is not taxed just the interest earned, which until recently has been diddly squat! It's definitely worth it to notify your bank that you've left the country. Having to lodge a non-resident tax return just because that income hasn't been taxed (assuming that's the only Australian sourced income you have) will be a pain. If it's your only Australian income and the 10% withholding tax has been taken you don't need to declare it in Australia. You will need to declare the interest to HMRC (100% of it not just the 90% you received) and they will tax it (assuming your income exceeds your personal allowance) but you get the Australian tax paid set off against the UK tax due. Only income is taxed. Moving money from one bank account to another bank account is not income regardless of whether the bank accounts are in different countries (unless you're moving the money backwards and forwards to try and earn an FX gain of course). Beware though that a super account is not a bank account. When you take money out of super that is pension income and taxable in the UK when you are resident there. Edited October 1, 2022 by Ken 1 Quote Link to comment Share on other sites More sharing options...
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