pez2008 Posted January 1, 2010 Share Posted January 1, 2010 Hi. We are here on a 475 temp visa and arrived on the 7th Oct. We left £50000 in our Uk bank because of exchange rate. Ive just heard you only get 6 months to bring money in otherwise you pay tax on it at a high rate. Is this true please. Link to comment Share on other sites More sharing options...
terry & Melanie Posted January 1, 2010 Share Posted January 1, 2010 Hi. We are here on a 475 temp visa and arrived on the 7th Oct. We left £50000 in our Uk bank because of exchange rate. Ive just heard you only get 6 months to bring money in otherwise you pay tax on it at a high rate. Is this true please. I read that too somewhere, so will be watching this closley for more info. We too had planned to leave what we don't initially need in the UK. Melanie x Link to comment Share on other sites More sharing options...
Mike@Bonbeach Posted January 1, 2010 Share Posted January 1, 2010 Hi. We are here on a 475 temp visa and arrived on the 7th Oct. We left £50000 in our Uk bank because of exchange rate. Ive just heard you only get 6 months to bring money in otherwise you pay tax on it at a high rate. Is this true please. Hi Can't answer your query re the time limits, but make sure you tell your UK savings holder(bank,building society) that you are no longer resident in the UK and to pay all your interest gross, ie no tax deducted. You may have to declare your interest as income on your Aussie tax return,depending on your visa conditions. Mike Link to comment Share on other sites More sharing options...
Guest Jackie Smith Posted January 1, 2010 Share Posted January 1, 2010 No - this is not true. If you are in Australia on a temporary visa you don't have to pay tax on interest eaned overseas. You will only have to think about the tax on your overseas interest if and when you become a PR. Link to comment Share on other sites More sharing options...
pez2008 Posted January 1, 2010 Author Share Posted January 1, 2010 No - this is not true. If you are in Australia on a temporary visa you don't have to pay tax on interest eaned overseas. You will only have to think about the tax on your overseas interest if and when you become a PR. Hi. But if i exchange it after 6 months do i pay tax on it. Theres no point me getting a better ex rate next year if i pay 30 40 % tax on it when its put into my Oz account because its classed as income or something. Link to comment Share on other sites More sharing options...
Guest Jackie Smith Posted January 1, 2010 Share Posted January 1, 2010 While you are on a temporary visa you will not have any Australia tax to pay on income or gains derived from an asset situated overseas. Link to comment Share on other sites More sharing options...
Guest guest33730 Posted January 1, 2010 Share Posted January 1, 2010 Hi. But if i exchange it after 6 months do i pay tax on it. Theres no point me getting a better ex rate next year if i pay 30 40 % tax on it when its put into my Oz account because its classed as income or something. Pez, My understanding is that after 6 months (It could be three actually) you pay tax on any profit you make on the exchange rate improvement and NOT the money itself. i.e. if you have £50,000 and it was worth $90,000 and after a few months it goes up to $100,000 you pay tax on the $10,000 difference. Daniel Link to comment Share on other sites More sharing options...
Pumpkin Posted January 1, 2010 Share Posted January 1, 2010 While you are on a temporary visa you will not have any Australia tax to pay on income or gains derived from an asset situated overseas. A 475 is not a temporary visa, it is a provisional visa, which I thought was viewed differently. Link to comment Share on other sites More sharing options...
Pumpkin Posted January 1, 2010 Share Posted January 1, 2010 Pez, My understanding is that after 6 months (It could be three actually) you pay tax on any profit you make on the exchange rate improvement and NOT the money itself. i.e. if you have £50,000 and it was worth $90,000 and after a few months it goes up to $100,000 you pay tax on the $10,000 difference. Daniel I have looked into this and this is also my understanding. Certainly for PR visas, I do not know if it is different for Provisional or Temporary visas. I am going to put spare cash into the mortgage to shield it I think. Link to comment Share on other sites More sharing options...
Guest guest33730 Posted January 1, 2010 Share Posted January 1, 2010 I have looked into this and this is also my understanding. Certainly for PR visas, I do not know if it is different for Provisional or Temporary visas. I am going to put spare cash into the mortgage to shield it I think. Until you sell your house when they take into consideration what it was worth when you moved & what it is worth when you then sell it!! Daniel Link to comment Share on other sites More sharing options...
Pumpkin Posted January 1, 2010 Share Posted January 1, 2010 Until you sell your house when they take into consideration what it was worth when you moved & what it is worth when you then sell it!! Daniel Actually I don't think that is true if it is your only house and you sell within a certain time frame. Link to comment Share on other sites More sharing options...
pez2008 Posted January 1, 2010 Author Share Posted January 1, 2010 Hi Thanks for all the replies, but no one has actualy said yes or no i will/will not pay tax. I will do some more enquiring, any suggestions of who to ask or sites to use. But as it stands ive got £50000 in my bank and im thinking maybe just money exchange it now and get it paid into my Ausssie account to avoid ANY chance of getting clobbered with tax on it. Link to comment Share on other sites More sharing options...
Sids Dad Posted January 2, 2010 Share Posted January 2, 2010 Hi Can't answer your query re the time limits, but make sure you tell your UK savings holder(bank,building society) that you are no longer resident in the UK and to pay all your interest gross, ie no tax deducted. You may have to declare your interest as income on your Aussie tax return,depending on your visa conditions. Mike I can tell you that, if your money is in a pre September 1985 account, it will be exempt from tax whenever you transfer it. You would also have to get a H.M. Revenue and Customs form R105 to obtain a limited balance election which you would have to check with your bank to see if they accept this, some do some don't.I think this gives you up to £250,000 without being subjected to tax. Link to comment Share on other sites More sharing options...
Guest Jackie Smith Posted January 2, 2010 Share Posted January 2, 2010 Firstly, I would say that having to pay tax on a profit is no reason to deny taking the profit. This is a bit like saying you don't want to receive any income from your employment as you'll have to pay tax on it. Even if you have to pay 50% tax on a profit, you will still be left with the remaining 50%. If you don't take the profit, you will have nothing. Remember, any tax liability arises only on the profit element, not on the capital element. Secondly, a provisional visa is just the same as a temporary visa. As a temporary resident you will pay not tax on foreign income or gains (except foreign employment income). A temporary resident is someone who holds a temporary visa, unless their spouse has PR or citizenship, in which case both spouses are considered to be PR. Here is a link to the ATO website confirming this. Foreign income exemption for temporary residents - general questions As long as you bring your funds over before you get PR there will be no tax to pay. I think people are getting confused over the 6 month rule. This applies to the transfer of UK pension funds. Again, if you are TR you can bring your UK pension fund to Australia with no tax implications, but if you are PR you may have to pay tax (only on any profit) if you do not complete the transfer within 6 months of beconing resident in Australia. Hope that's helped to clear up some confusing issues. Link to comment Share on other sites More sharing options...
andyhus Posted January 2, 2010 Share Posted January 2, 2010 Why don't you open a £ account in Aus and put it in there, it is then in Aus and you might get a little bit of intrest on it. That is what i have done. NAB do £ account but you have to keep a certain amount in it About US$13000 i think. but when exchange rate goes up change it up and close the account as there is a $40 a month charge if you go below the threshold. Link to comment Share on other sites More sharing options...
pez2008 Posted January 2, 2010 Author Share Posted January 2, 2010 Firstly, I would say that having to pay tax on a profit is no reason to deny taking the profit. This is a bit like saying you don't want to receive any income from your employment as you'll have to pay tax on it. Yes i know but i am being told if i transfer my money, £50000 after 6 months i am liable for tax at about 30% on the total amount. Therefore i would pay £15000 in tax. This is why im worrying. Link to comment Share on other sites More sharing options...
Sids Dad Posted January 2, 2010 Share Posted January 2, 2010 You only pay tax on the interest that you earn on your £50000 not on the whole amount! I'm worried about the low rate not what I might have to pay on my interest earned! Link to comment Share on other sites More sharing options...
Alan Collett Posted January 2, 2010 Share Posted January 2, 2010 Firstly, I would say that having to pay tax on a profit is no reason to deny taking the profit. This is a bit like saying you don't want to receive any income from your employment as you'll have to pay tax on it. Yes i know but i am being told if i transfer my money, £50000 after 6 months i am liable for tax at about 30% on the total amount. Therefore i would pay £15000 in tax. This is why im worrying. Who is saying this, please ...? Best regards. Link to comment Share on other sites More sharing options...
Alan Collett Posted January 2, 2010 Share Posted January 2, 2010 You only pay tax on the interest that you earn on your £50000 not on the whole amount! I'm worried about the low rate not what I might have to pay on my interest earned! UK source interest income is not taxable in Australia when you are resident in Australia and hold a temporary residency visa - as has been mentioned above already. Best regards. Link to comment Share on other sites More sharing options...
pez2008 Posted January 2, 2010 Author Share Posted January 2, 2010 Who is saying this, please ...? Best regards. Some fellow poms i have just met were convinced there info was correct. Thats why i was worried. So your 100% sure you only pay tax on the interest gained. Link to comment Share on other sites More sharing options...
Guest guest33730 Posted January 2, 2010 Share Posted January 2, 2010 Some fellow poms i have just met were convinced there info was correct. Thats why i was worried. So your 100% sure you only pay tax on the interest gained. Just to put your mind at rest Pez, Alan is a registered accountant both in Aus and in the UK as well as being the MD of Go Matilda - one of the best RMA's in the business. If Alan says it you can take it it's right!! Daniel Link to comment Share on other sites More sharing options...
Alan Collett Posted January 3, 2010 Share Posted January 3, 2010 Some fellow poms i have just met were convinced there info was correct. Thats why i was worried. So your 100% sure you only pay tax on the interest gained. Maybe all of you would like to pop into my office in Newtown to discuss? T 03 5222 6288 (business hours). Happy New Year! Link to comment Share on other sites More sharing options...
Guest SFW Posted January 15, 2010 Share Posted January 15, 2010 Helo - Can Ia sk how ou got on with this money transfer. I have a similar issue where I want to transfer money for a UK saving account (so not money earnt). I have been in Oz since November 2004 and became PR in October 2008. I have still paid UK tax on my savng account since being here. Just want to know what kind of tax I would have to pay in Oz before commecning the fund transfer. Also what documents I would need to prove to OZ tax authorities that it is a Savings account and not money earnt in the Uk Link to comment Share on other sites More sharing options...
boganbear Posted January 20, 2010 Share Posted January 20, 2010 If you are going to transfer your pension sort it out as soon as you get here. I have no idea why but it took slightly more than 6 months to transfer the money from my 2 UK pensions into my aussie super. This is ridiculous as i transfered my own money in 24 hours!!!! On the savings issues, i can't see the UK econopmy improving for a good while hence the crap exchange rate. However, you do get much more interest here. I'm getting 5.51% with UBank. Although interest is not taken off at source as in the UK, you might be better off sending some of it here and get some interest. The interest earned is taken into account of your income when you do a tax return but this was dead easy to do. I also got a $1200 rebate for earning below some threshold as well. Link to comment Share on other sites More sharing options...
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