Guest JAMIEKERRIE Posted May 17, 2007 Share Posted May 17, 2007 Hi there, Basically, because the exchange rate has gone so c**p recently, we are intending to put the proceeds from our house sale in a high interest account such as National Savings (6.05% !) until which time the exchange rate improves, then transfer it into Aus dollars...bet were not the only ones doing this, as we are kicking ourselves we didn't "Forward contract" in Feb..hindsight! * Is it true that we would be taxed on the interest made on this fund as "World wide income" after 6 or 12 months, if we don't transfer straight away, as we are emergrating at the end of July? * Also, at what rate, is it the standard 20% ? If somebody could pl clarify this for me, I would be very grateful, as the A.T.O were no help! Finally, it does seem a bit of a cheek to me that the A.T.O/Aus Government can tax UK MONEY IN A UK ACCOUNT, but there you go.... Cheers, Jamie. Link to comment Share on other sites More sharing options...
calNgary Posted May 17, 2007 Share Posted May 17, 2007 Hiya im no expert but when we moved we were told any moneys transfered after 12mth would be classed as taxable at this end,not sure for how much as we moved it all before but it would still cost a few quid if house sale money etc,maybe bob will clarify this for us later ,,please bob ???? Cal x Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted May 18, 2007 Share Posted May 18, 2007 G'day Jamie What Visa subclass are you coming over on? Link to comment Share on other sites More sharing options...
Guest Phyllis n Joe Posted May 18, 2007 Share Posted May 18, 2007 Hi Bob, We are already in Australia on a full residency visa, our money is still in the UK due to the ex rate not being to good, so like Jamie was asking is it best to leave it there or just take the loss n go with it!! and is it all taxable, HIFX is our broker for the exchange and they keep pestering us to sell but I'm not inteserted until the exhange goes up. Could you possibly give me some advice on that pls much appreciated. Phyllis Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted May 18, 2007 Share Posted May 18, 2007 Hi Bob, We are already in Australia on a full residency visa, our money is still in the UK due to the ex rate not being to good, so like Jamie was asking is it best to leave it there or just take the loss n go with it!! and is it all taxable, HIFX is our broker for the exchange and they keep pestering us to sell but I'm not inteserted until the exhange goes up. Could you possibly give me some advice on that pls much appreciated. Phyllis G'day G'day Phyllis Just an initial word of warning. What I am saying here is MY opinion. It does not constitute financial advice. You should seek (and pay for) suitable professional advice. Presuming your were a UK resident and tax payer when you sold your house, you don't have to pay any tax here on the money you get from the sale of your UK assetts or investments. If it was an investment or something similar, there might be a UK liability for capital gains tax, but there is no Australian tax liability. Once you came to Australia on a permanent residence visa and became "a resident of Australia for tax purposes", you will start to incur taxation liabilities for all income earned and capital gains made. This includes any income paid as interest while your money is in a UK bank account. You are also delaying transferring your money here because you think you may make a capital gain by transferring it at a later date. Any captals gain you do make on the currency FX rates may attract capital gains tax here in Australia. Normally there is a time period allowed for transferring funds where CGT is not applied, but in the situation where you have everything ready to go and you are actively speculating on future exchange rates, these exemption time periods may not apply. So Phyllis, I would suggest that you seek appropriate advice from a taxation accountant. To the original poster - Kerrie, this may or may not apply to you. You did not answer my question about visa type. There are different treatments for permanent residents and temporary residents. However my comment about seeking professional advice applies regardless. Link to comment Share on other sites More sharing options...
Guest Phyllis n Joe Posted May 18, 2007 Share Posted May 18, 2007 G'day G'day Phyllis Just an initial word of warning. What I am saying here is MY opinion. It does not constitute financial advice. You should seek (and pay for) suitable professional advice. Presuming your were a UK resident and tax payer when you sold your house, you don't have to pay any tax here on the money you get from the sale of your UK assetts or investments. If it was an investment or something similar, there might be a UK liability for capital gains tax, but there is no Australian tax liability. Once you came to Australia on a permanent residence visa and became "a resident of Australia for tax purposes", you will start to incur taxation liabilities for all income earned and capital gains made. This includes any income paid as interest while your money is in a UK bank account. You are also delaying transferring your money here because you think you may make a capital gain by transferring it at a later date. Any captals gain you do make on the currency FX rates may attract capital gains tax here in Australia. Normally there is a time period allowed for transferring funds where CGT is not applied, but in the situation where you have everything ready to go and you are actively speculating on future exchange rates, these exemption time periods may not apply. So Phyllis, I would suggest that you seek appropriate advice from a taxation accountant. To the original poster - Kerrie, this may or may not apply to you. You did not answer my question about visa type. There are different treatments for permanent residents and temporary residents. However my comment about seeking professional advice applies regardless. Bob, thank you so much for taking the time to answer my question, it's very much appreciated. thank you:notworthy: Phyllis Link to comment Share on other sites More sharing options...
Guest JAMIEKERRIE Posted May 18, 2007 Share Posted May 18, 2007 G'day Jamie What Visa subclass are you coming over on? Hi Bob, visa subclass 136 (skilled) Permanent resident. Jamie. Link to comment Share on other sites More sharing options...
Guest lynneand mark Posted May 18, 2007 Share Posted May 18, 2007 Hi, we are also concerned about the exchange rate but someone said - right or wrong - that with the election coming up it should rise in our favour???? Don't know but I am clinging onto any hope as even $0.01 makes a difference when you are changing the proceeds of a house. Hadn't even thought about taxation???? One more thing to add to the list of things to do/sort out!! Link to comment Share on other sites More sharing options...
Guest JAMIEKERRIE Posted May 18, 2007 Share Posted May 18, 2007 Hi, we are also concerned about the exchange rate but someone said - right or wrong - that with the election coming up it should rise in our favour???? Don't know but I am clinging onto any hope as even $0.01 makes a difference when you are changing the proceeds of a house. Hadn't even thought about taxation???? One more thing to add to the list of things to do/sort out!!I've heard the same, when's the election!? Link to comment Share on other sites More sharing options...
Guest lynneand mark Posted May 20, 2007 Share Posted May 20, 2007 I've heard the same, when's the election!? September maybe, nothing confirmed. Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted May 21, 2007 Share Posted May 21, 2007 September maybe, nothing confirmed. G'day In September there is a meeting of the Asia Pacific Economic Cooperation forum (APEC) in Sydney. With Bush and Putin coming to town there is ABSOLUTELY NO WAY an election will be called until after this meeting. Assuming a fairly short "official" election campaign (although they're actually campaigning now), it mean the earliest an election would be held is mid October. lynneand mark, on what basis did you give your answer? Link to comment Share on other sites More sharing options...
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