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hoopster

UK ISA - tax to pay in Australia

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Advice wanted  please.....I have a couple of UK ISA's (one a Cash ISA and one a Stocks and Shares ISA) set up 10 years before I moved to Australia, and I haven't contributed to them since moving here 8 years ago. When the time comes to cash them in/withdraw the funds, do I have to pay Australia income tax on the whole growth over the life of the ISA or just the growth since I moved to Australia - as the funds were set up as tax free whilst I was in the UK? Not sure what's the best thing to do with them?

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Hello Hoopster

I'm assuming that you are a Permanent Resident/Citizen here in Australia.

My following comments relate to PRs/Citizens.

UK tax free doesn't mean Australian tax free and thus foreign investments and savings are typically assessed by the ATO on the same basis as Australian investments and savings.

Therefore interest earned from savings should be declared each year in the tax return.

Investments are treated in that:

>  Income again should be declared each year in the tax return ie dividends and/or distributions from Unit Trusts/OEICS.

> Capital Gains should be declared in the tax return in the year that they are realised (with any relevant exemptions that are applicable applied).

Hope this helps.

Regards Andy

 

 

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