SIR & bringing money

[Guest hrubieszowianka]

Hi!

Just a quick question. We will be on SIR visa, which is a temporary/privisional one. If we leave our funds in UK bank and bring it much later after our arrival to SA, will it be taxable? Or does tax kick in when we get PR?

I'm just researching the options, hoping for a better rate, lower house prices etc (it would be nice if something went in the right direction for once).

 

And another one, if we bring it at the same time, in what way could we secure it? I'm thinking of no protection from the government, if the bank goes bust.

 

Thanks for any advice.

[Andrew from Vista Financial]

Hi,

 

generally if you are on a temp visa then you will not have to declare your worldwide income in Oz.

 

You are also entitled to your personal allowance in the UK and if the interest that you would earn and any other UK income is under that allowance then you can register a P85 with the Bank to have your interest paid gross (with no tax deducted).

 

In Australia they have just introduced a Financial compensation scheme but it will only protect $20,000, so not as secure as UK.

 

Also though bear in mind interest rates.

 

Not to sure about UK now but am I right in thinking that interest rates are between 5 - 6 % ?

 

In Australia you can earn up to 8.8% in a term deposit but of course it would count towards taxable income.

 

Hope this helps

 

Regards

 

Andy