Guest anna&steve Posted April 23, 2007 Share Posted April 23, 2007 Hi, Steve here. Once the house is sold, there will be proceeds which will hopefully be used to fund a house purchase in Oz although the plan is to rent initially. I'd heard in the UK that you would be liable to Capital Gains Tax unless funding another house purchase in the UK (not sure how true that is). However, could Mr. Brown (or whoever might be the Chancellor at that time) get his grubby hands on any of these proceeds (we're tripled taxed on everything else!!!) as you are effectively taking the money out of the country. I've had proceeds from house sales before in an account for a few months before using the money to fund a house purchase here & have not had any issues? I'm sure many of you have now used proceeds to buy in Oz, how did you go on with that? Any advice very welcome & I hope if you're already over there it's going well! Regards, Steve. Link to comment Share on other sites More sharing options...
Guest austibeach Posted May 16, 2007 Share Posted May 16, 2007 I would have thought it unlikely that you would be hit with Capital Gains Tax on your house sale, but I would be very interested to know. I'm suprised there has been no answer to your question thus far Steve, perhaps someone will enlighten us . Eric. Link to comment Share on other sites More sharing options...
minlady Posted May 16, 2007 Share Posted May 16, 2007 Hi, Steve here. Once the house is sold, there will be proceeds which will hopefully be used to fund a house purchase in Oz although the plan is to rent initially. I'd heard in the UK that you would be liable to Capital Gains Tax unless funding another house purchase in the UK (not sure how true that is). However, could Mr. Brown (or whoever might be the Chancellor at that time) get his grubby hands on any of these proceeds (we're tripled taxed on everything else!!!) as you are effectively taking the money out of the country. I've had proceeds from house sales before in an account for a few months before using the money to fund a house purchase here & have not had any issues? I'm sure many of you have now used proceeds to buy in Oz, how did you go on with that? Any advice very welcome & I hope if you're already over there it's going well! Regards, Steve. Hi Not sure if this is what you mean... but The way I see it....and probably how we are going to do it... You leave the UK and therefore deem yourself NON-resident for Tax purposes. You take the time to arrive in Oz, meanwhile you are non-res in Oz and therefore not liable for tax there either (same as working in middle east for example). In the mean time, our bank, the HSBC, make it real easy to move your account to Jersey where you get all the benifits of HSBC online ATM etc, but the rub is all savings are at Gross. You arrive in OZ, date of arrival you start residency, you get temp tax code etc. Transfer monies to Oz HSBC savings and start to pay tax at local rate. Money sorted in Jersey for time away is tax free....worth checking out. Please tell me if i'm wrong! min x:cute: Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted May 17, 2007 Share Posted May 17, 2007 Please tell me if i'm wrong! G'day You're wrong. (In part) Bob in Bull Creek Link to comment Share on other sites More sharing options...
calNgary Posted May 17, 2007 Share Posted May 17, 2007 come on bob explain ?? im intigued as we didnt pay on taxes here on in the uk on our house sale money. Cal x Link to comment Share on other sites More sharing options...
Guest Daceys Posted May 17, 2007 Share Posted May 17, 2007 Hi Cal, you say that you didn't pay any taxes in the UK with your house sale money :jiggy: Did you have to pay any when you arrived in oz out of your house sale money? :eek: Al. 8 weeks to go :cool: Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted May 17, 2007 Share Posted May 17, 2007 come on bob explain ?? im intigued as we didnt pay on taxes here on in the uk on our house sale money. Cal x G'day It was Min that told me tell her she was wrong - so I did. The only way she was wrong however, was that she only told part of the story. With houses in the UK sold before you are an Aussie Tax payer, there will be no Aust tax applicable regardless of what you do with the proceeds. If you come to Aust on a temporary visa and your house proceeds are invested in the UK or Jersey or anywhere outside Australia, no Australian tax is payable. Regardless of your visa status, if you deposit the proceeds of your house sale in an Aussie bank, you will pay income tax but only on the interest earned. The rate of Aussie tax will vary according to your status. If you sell your house in the UK and move to Aust on a permanent visa and become a resident tax payer, then the interest earned on the house proceeds will be considered as income and taxed here in Oz regardless of where the money is invested. If you invest the money in the UK or Jersey or wherever and there are currency fluctuations that make you money, that capital gain can be taxed here too. With all of these things, the full story can be more involved than just a simple yes, or no. That is why it's best to speak to an accountant or financial advisor to get information specific to your situation. Link to comment Share on other sites More sharing options...
minlady Posted May 17, 2007 Share Posted May 17, 2007 G'day You're wrong. (In part) Bob in Bull Creek Hi Bob Point taken.... min x:cute: Link to comment Share on other sites More sharing options...
Guest austibeach Posted May 17, 2007 Share Posted May 17, 2007 Thanks for clarifying the situation Bob. The upshot would appear to be, if in doubt, get qualified advice. Thank you, Eric. Link to comment Share on other sites More sharing options...
calNgary Posted May 17, 2007 Share Posted May 17, 2007 bob we sent the money in 3 seperate instalments shortly after we arrived ,really cant remeber anyone taking any tax on it but we did bring before the 12mth barrier,would this be why ? Cal x Link to comment Share on other sites More sharing options...
Guest HPRYCE Posted May 17, 2007 Share Posted May 17, 2007 Hi Steve. If the house you are selling in the UK is your primary residence there is no CGT payable on disposal. If however it was an investment property CGT would be payable and the amount would depend on how long you have owned the property as there is a system called taper relief. Hope this helps. Hugo Link to comment Share on other sites More sharing options...
Guest anna&steve Posted May 27, 2007 Share Posted May 27, 2007 Thank you to all who replied, very useful & much appreciated. Thanks. Steve. Link to comment Share on other sites More sharing options...
Guest Morven33 Posted May 27, 2007 Share Posted May 27, 2007 :wideeyed:I'm still confused:wideeyed: Anyone willing to give me an idiot proof explanation much appreciated if you can Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted May 28, 2007 Share Posted May 28, 2007 :wideeyed:I'm still confused:wideeyed: Anyone willing to give me an idiot proof explanation much appreciated if you can Hmmm, "idiot proof" is pretty tough - they're getting better and better at making idiots all the time What part of my post on 17/5 didn't you understand? Failing that, tell me what is your visa? When did/will you sell the house? When did/will you move here? Where did/will you put the dosh? Link to comment Share on other sites More sharing options...
Guest Morven33 Posted May 28, 2007 Share Posted May 28, 2007 Hmmm, "idiot proof" is pretty tough - they're getting better and better at making idiots all the time What part of my post on 17/5 didn't you understand? Failing that, tell me what is your visa? When did/will you sell the house? When did/will you move here? Where did/will you put the dosh? My husband qualified for a 47ES employer sponsored visa and we have permanent residency. House sale is going through right now and should be completed by 15th June. I am still in UK (husband already in Brissie to start work) and will fly out on 3rd July. I just dont know what to do with the sale proceeds which will be around the £50,000 mark. Is it best to leave in UK til we need them to buy property over there, or better to take them and have them in Ozzie bank account? Can we do that? What would you do? Cheers Bob Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted May 29, 2007 Share Posted May 29, 2007 My husband qualified for a 47ES employer sponsored visa and we have permanent residency. House sale is going through right now and should be completed by 15th June. I am still in UK (husband already in Brissie to start work) and will fly out on 3rd July. I just dont know what to do with the sale proceeds which will be around the £50,000 mark. Is it best to leave in UK til we need them to buy property over there, or better to take them and have them in Ozzie bank account? Can we do that? What would you do? Cheers Bob G'day Regardless of when you move the money to Aus, you will need to pay (some) tax in Aus on the income earned on that money. Presumably your hubby's opened bank accounts in Aus? It might be easier to move the money while you're still in the UK and he's here to recieve it. I can make no comment about variations in the exchange rate though - that's in the hands of the clairvoyants. Link to comment Share on other sites More sharing options...
Guest Abi&Dan Posted May 29, 2007 Share Posted May 29, 2007 When we sell our house, we plan to maintain a UK bank account (using my mum's address) put the proceeds in there and not convert to Aus$ until we are 100% sure about staying in Oz and buying a house (expected to be within 12 months) - so as not to suffer 2 conversions if we change our mind. I believe if we do that we may pay some Aus tax on the amount over and above the original proceeds (growth only). That's what I've got from this thread and comments elsewhere too. Presumably we may have to provide evidence of what the original lump sum was? I hope I'm right in that assumption!! :err: Link to comment Share on other sites More sharing options...
Guest Morven33 Posted May 29, 2007 Share Posted May 29, 2007 G'day Regardless of when you move the money to Aus, you will need to pay (some) tax in Aus on the income earned on that money. Presumably your hubby's opened bank accounts in Aus? It might be easier to move the money while you're still in the UK and he's here to recieve it. I can make no comment about variations in the exchange rate though - that's in the hands of the clairvoyants. Cheers for that Bob, most grateful for your advice! Morven Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted May 30, 2007 Share Posted May 30, 2007 When we sell our house, we plan to maintain a UK bank account (using my mum's address) put the proceeds in there and not convert to Aus$ until we are 100% sure about staying in Oz and buying a house (expected to be within 12 months) - so as not to suffer 2 conversions if we change our mind. I believe if we do that we may pay some Aus tax on the amount over and above the original proceeds (growth only). That's what I've got from this thread and comments elsewhere too. Presumably we may have to provide evidence of what the original lump sum was? I hope I'm right in that assumption!! :err: G'day The statement from your bank account will show the amount of interest paid. That is the amount that you will need to show on your tax return. Link to comment Share on other sites More sharing options...
Guest Abi&Dan Posted May 30, 2007 Share Posted May 30, 2007 G'day The statement from your bank account will show the amount of interest paid. That is the amount that you will need to show on your tax return. That's great Bob, cheers (sigh of relief!!) Link to comment Share on other sites More sharing options...
Guest Working to fish Posted June 17, 2007 Share Posted June 17, 2007 We have our house on the market at the moment and with the money made on house sale we have been told that if we were to put money into bonds (in the uk) that we wouldn't have to pay tax on this money. We can then draw an income, monthly, on the interest, to go towards paying rent on a house here until we're ready to go. So, my question is, i think i've already read the answer but not 100% sure, will i be liable for tax, on interest only, entering oz. Also can anyone tell me about having to get your money into oz within 12 months of being there as this is new news to me. Am i reading this right? Any advice appreciated as i am totally confussed. Link to comment Share on other sites More sharing options...
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