Leeds1877

Rules around transferring money from the UK

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    We came out here earlier in the year and are now ready to but a house so are transferring our money over from UK. On our last tax return in Oz we declared the overseas interest etc. how do we calculate what the rate was to estimate capital gains tax? Is it an estimate and is it the day you arrived? How does the ATO know anyway? Our accountant said that he would look into it but that we 'probably' wouldn't have to pay anything. How do I know he is right? We don't want a bill further down the line...

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    We came out here earlier in the year and are now ready to but a house so are transferring our money over from UK. On our last tax return in Oz we declared the overseas interest etc. how do we calculate what the rate was to estimate capital gains tax? Is it an estimate and is it the day you arrived? How does the ATO know anyway? Our accountant said that he would look into it but that we 'probably' wouldn't have to pay anything. How do I know he is right? We don't want a bill further down the line...

     

    Hi Leeds1877, Your UK interest is usually paid with with tax taken out at source and therefor should not be taxed again here, but no doubt the tax rules will need to be checked out. I would say though if your accountant does not know the rules, as one would assume he must surely have clients with various overseas interests? then maybe think about changing your accountant.

    If I find out any info I will let you know.

    Cheers

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    We don't pay tax in uk as non residents with inland revenue. As for accountant, we are in the process of getting a second opinion! Thanks tho x

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    Hello

     

    Were you registered as non-tax payers on your UK savings? If not and tax was deducted at source from your UK savings did you receive a tax credit for the tax you paid on the interest in the UK here in Australia.

     

    This is generally the case if you are PR which I am assuming you are hence declaring the interest here as well.

     

    In relation to declaring gains, I assume you are referring to any forex gain?

     

    There are some very complex rules around forex gains but generally for people that are bringing across domestic monies it does not apply however for you own peace of mind I would suggest that you apply to the ATO for a 'Private Ruling' which is a fairly easy process in which you write in to them with the circumstances of your situation including dates of entry, visa type you are on now and when arrived in different etc etc and they will send back a written response to you usually within 28 days.

     

    There are a few threads about this on the PIO site as well, have a look over there and do a search on foreign exchange gains.

     

    Regards

     

     

    Andy

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