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Paying tax on UK savings?


mr luvpants

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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

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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.

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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

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Guest Mark X
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.

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