chalkyhill Posted February 22, 2012 Share Posted February 22, 2012 I am looking to transfer some money back to the UK to pay off a chunk of our UK mortgage - however I was wondering if there are any tax implications for this. Link to comment Share on other sites More sharing options...
Guest GeorgeD Posted February 22, 2012 Share Posted February 22, 2012 No tax implications as far as Oz is concerned for sending money out of the country. It's how you earn it which dictates how you are taxed by Australia. Moving money in and out of Oz doesn't create any tax liability in Oz. Not sure of any UK implications though. One thing to consider...do you rent your house out in the UK? If so, that income is taxable by Australia if you are a Permanent Resident or Citizen. You may be able to offset interest on your mortgage against any such tax liability, so paying off the mortgage may mean you have a higher taxable income to declare. If you aren't renting it out, then it isna't an issue as you have no income from it. Link to comment Share on other sites More sharing options...
paisleylass Posted February 22, 2012 Share Posted February 22, 2012 Surely you're better off paying the mortgage faster and saving a packet in interest long term than paying a bit less tax?! Link to comment Share on other sites More sharing options...
chalkyhill Posted February 22, 2012 Author Share Posted February 22, 2012 The mortgage is coming to its renewal date and in order to continue renting out with a decent interest rate then we will need to pay off a bigger slice of the mortgage. I agree it will start producing increased taxable income - however I am sure there are ways of offsetting that. Link to comment Share on other sites More sharing options...
Guest GeorgeD Posted February 23, 2012 Share Posted February 23, 2012 Surely you're better off paying the mortgage faster and saving a packet in interest long term than paying a bit less tax?! I haven't a clue! Buying investment properties on interest only mortgages and letting them out seems to be highly popular in Oz, the point is to allow the capital value increase happily in the background and offset ltos against tax. I'm no expert and am not in this situation myself. Speak to an accountant about the tax offset side of things...but definitley no Oz tax on moving money anywhere. Link to comment Share on other sites More sharing options...
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