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jakc

Shifting GBP to AUD - when/how to do it?

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I had around 20k in GBP invested in shares and funds back in the UK.

These were going nowhere, so I have cashed them in, and they are now sitting in a savings account back in my UK bank.

 

I am pretty certain ill be living in Australia for at least another 5years, and most likely the long term.

Therefore I want to bring the money over here, and perhaps invest in a house later in the year (in Melbourne).

 

Q1 - What is the best way to transfer this sort of money from UK to Oz?

My english friend at work said that banks swift transfers usually have bad rates and high fees, as they dont want to lose the money. Any truth in this?

 

Q2 - When is the best time to shift it? (Can this even be answered?)

I keep an eye on this link:

http://www.google.com/finance?q=AUDGBP

 

But it just seems the AUD keeps getting stronger and stronger compared to the pound - which is good, but should I be waiting for a trough or any tips on any upcoming changes that may affect this?

I would be gutted if I transfer one week, and then if I waited another week, could have made a lot more (or lost a lot more I guess).

 

Thoughts?

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Hi Jakc,really bad time to move GBP as the a$ is at a record high against the pound. I would recommend looking at your options as you will have higher interest in the banks in Oz than the UK but look at the potential increase from the perspective of the exchange rate. In 2002 when I was in Oz initially I was getting a$2.5 to the £ but now you'll get a$1.45. That is a huge drop! I would wait and hold on until the £ levels out as it may get back in a couple of year to closer to a$2 but that is by no means certain. This also has am implication for any pension funds that you may want to transfer. You could also have to declare any profits on the increase as a commercial gain under capital gains tax. I am not a financial person, I am a Nurse so I may be talking crap about that. I will be needing to move around the same figure once I sell my house so I am interested in any more answers to this post too.I would advise holding onto the money in the UK as the potential increase in value could be (given 2A$ to the £ in future) of as much as 25% so if you were to put that in a high interest account you'd get 2 years of perhaps 6% which you'd pay tax on aswell.You should have a look at websites like moneysupermarket.com etc as they can advise. You can get foreign exchange accounts in Oz so shop around for them, you could also look at things like interbank which my folks use for transferring funds to their spanish mortgage. Western Union could be worth a look aswell.Sorry it is a bit of a rambling reply but it is Monday morning and my back is killing me!Sx


Temp Res Visa application sent 24.10.11, Permanent Resident Visa approved 24.02.12 :ssign19:

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Guest AndreaInOZ

Using a currency expert such as Global Currency would be your best bet for bringing cash over but with regards to the exchange i would say the longer you wait probably the better as the rate is the lowest it has been for a long time, but just my opionion...Good luck!

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We used Moneycorp and they were very good! Do not bring all of it though, we brought 6000 pounds out just before xmas and got $9300 (1.55 x rate). If we did it now we would have had $600 less (1.45), thats after 2 months. Thats more than any savings account could give you so choose your time carefully to transfer, after the Olympics may be a good bet!


Liz, Steve, India 13, Alex 12 and Siella 4

Lateral transfer RN to RAN Submarines.

Visa approved 16 March 2011. Emigrated from Plymouth, UK to WA August 2011.

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I had around 20k in GBP invested in shares and funds back in the UK.

These were going nowhere, so I have cashed them in, and they are now sitting in a savings account back in my UK bank.

 

I am pretty certain ill be living in Australia for at least another 5years, and most likely the long term.

Therefore I want to bring the money over here, and perhaps invest in a house later in the year (in Melbourne).

 

Q1 - What is the best way to transfer this sort of money from UK to Oz?

My english friend at work said that banks swift transfers usually have bad rates and high fees, as they dont want to lose the money. Any truth in this?

 

Q2 - When is the best time to shift it? (Can this even be answered?)

I keep an eye on this link:

http://www.google.com/finance?q=AUDGBP

 

But it just seems the AUD keeps getting stronger and stronger compared to the pound - which is good, but should I be waiting for a trough or any tips on any upcoming changes that may affect this?

I would be gutted if I transfer one week, and then if I waited another week, could have made a lot more (or lost a lot more I guess).

 

Thoughts?

so you sell shares when low ?? & want to by $ when it is only $1.47 ish to the £ not a good idea.

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OzForex .... I've been using them for nearly a year now and they offer a fantastic service.

 

When to move money?? There isn't one at the moment. Move as little as you can from the UK and hope the exchange rate comes down over the next year.

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Guest Mumfy

Hi - LizSteveR - you're one of a few people I have heard who have mentioned to wait until after the Olympics to see an improvment in the rate? It might work out good timing for us if we can sell our house in the UK spring but just interested to hear the logic...?

 

Cheers

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Isn't there a capital gains tax to be paid when transferring the money if you've waited for a better exchange rate?

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Isn't there a capital gains tax to be paid when transferring the money if you've waited for a better exchange rate?

 

I believe there is but I would be interested to know how this is documented/ accounted for / collected ?

?

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I believe there is but I would be interested to know how this is documented/ accounted for / collected ?

?

 

That's a good point. Presumably the gain you made on any money you moved after you submitted your first Australian Tax return would be clear (that's assuming you show off-shore assets on your tax return - I don't know if you do I've never seen an Australian Tax return) but surely any gain you made before being required to tell the ATO what offshore assets you had would be far from clear?


Chartered Accountant (England & Wales); Registered Tax Agent & Fellow of The Tax Institute (Australia)

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http://www.livingin-australia.com/taking-currency-to-australia/Thought this link useful. Ignorance is bliss though and as you say brightonbee who's looking at your stash? You can take up to A$10000 into Oz with you at the border without declaring it but who's carrying that kind of scratch with them on the plane though! Everyone fills out a tax form every year and the tax year runs from July to June. Many things are tax deductable apparently and there is a new system where you can do it all online which makes it much easier but I have never filled one out as yet. You can take your tax for to a tax adviser and they will help you out, I believe it is around £50 for them to sort you out. Capital gains is figured out on top of your income tax and if you have owned the capital for 12 months or more you pay 50% less tax so I don't know how that works for money you may have in the UK.Good luck and also I'd love to see the £ rocket against the A$ after the games.M


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...and also I'd love to see the £ rocket against the A$ after the games.M

 

But won't the movement of all that gold from Stratford to Australia depress the exchange rate?? :biglaugh:


Chartered Accountant (England & Wales); Registered Tax Agent & Fellow of The Tax Institute (Australia)

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I assume there is a capital gains allowance each year in Oz as in the UK so probably not anything to pay unless you have other gains that year (especially if cash is in joint names) unless you are talking about millions.


So many wineries ......so little time :yes:

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There is no capital gains tax to pay if you leave your savings in UK and wait for a better rate. You will pay tax on any interest. 20,000 pounds just get it over here now. I use currrency online-safe and reliable very easy to talk to on phone even if they are kiwi"s. Wait till it gets over 1.48 and hit the sell button.

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