mr luvpants Posted August 20, 2010 Share Posted August 20, 2010 Hi I am right in saying that we will still pay tax on our UK savings if we leave the money in the UK whilst we live in Oz? JOHN Link to comment Share on other sites More sharing options...
Quoll Posted August 20, 2010 Share Posted August 20, 2010 Yes, you have to declare foreign income and investments and even lottery winnings Link to comment Share on other sites More sharing options...
mr luvpants Posted August 20, 2010 Author Share Posted August 20, 2010 So we pay twice? Or do we get exemption in the UK and pay in oz? JOHN Link to comment Share on other sites More sharing options...
Quoll Posted August 20, 2010 Share Posted August 20, 2010 Foreign income tax offset: If an individual has assessable income from overseas, they must declare it in their Australian income tax return. If that person has paid foreign tax in another country, they may be entitled to an Australian foreign income tax offset, which provides relief from double taxation. Quote from this site Overseas investments and tax - Taxpayers Australia Link to comment Share on other sites More sharing options...
dufont Posted August 20, 2010 Share Posted August 20, 2010 Hi I am right in saying that we will still pay tax on our UK savings if we leave the money in the UK whilst we live in Oz? JOHN Yes if you are resident in Australia for tax purposes, you have to pay tax on ALL income. Australia does have a double tax agreement with the UK so you will get a credit for the tax paid in the UK. Link to comment Share on other sites More sharing options...
Mike@Bonbeach Posted August 21, 2010 Share Posted August 21, 2010 So we pay twice? Or do we get exemption in the UK and pay in oz? JOHN Tell your bank/building society/savings provider that you no longer reside in the UK and I believe that they will then pay your interest gross, ie no tax. You will of course have to disclose your interest received to the Au taxman. Mike Link to comment Share on other sites More sharing options...
Guest Mark X Posted August 23, 2010 Share Posted August 23, 2010 Tell your bank/building society/savings provider that you no longer reside in the UK and I believe that they will then pay your interest gross, ie no tax. You will of course have to disclose your interest received to the Au taxman. Mike Yes, this is correct most of them will be happy to do this, they have arrangements already setup to do this for foreign investors and students. You may still need to submit a UK tax return however, even if it is to show you have no taxable income. Link to comment Share on other sites More sharing options...
Alan Collett Posted August 24, 2010 Share Posted August 24, 2010 The test for interest being paid gross by a UK bank or building society is your ordinary residence. See form R105: R105 - Application for a not ordinary resident saver to receive interest without tax taken off Best regards. Link to comment Share on other sites More sharing options...
Cob Posted August 24, 2010 Share Posted August 24, 2010 we tried this with Barclays and they refuse to - stating they are within their rights blahblah, too complicated blahblah, blahblah. Link to comment Share on other sites More sharing options...
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