Heads up: bring money over from uk - keep records!
Discussion
Got a lovely letter from ATO asking where a lump sum came from in 2007 received from the UK. It was from my house sale that took place before I moved out but the money wasn't transferred until 6 mths later when I was physically here.
So now I have to get proof from the conveyancing solicitor (whom I can't remember who is it) or my bank acct (which has now closed) or the mortgage company (which will be a pain trying to get an email response from). All within 3 weeks. If I can't get it in time then it becomes assessable income. FML.
I sense a battle.
So kids, if you move out keep all records for at least 5 years....
So now I have to get proof from the conveyancing solicitor (whom I can't remember who is it) or my bank acct (which has now closed) or the mortgage company (which will be a pain trying to get an email response from). All within 3 weeks. If I can't get it in time then it becomes assessable income. FML.
I sense a battle.
So kids, if you move out keep all records for at least 5 years....
k do they know about it?yorky500 said:
What about if you are transferring funds over to Aus which you have saved whilst in a different Country - i.e. the funds are being transferred so you can get a decent start over there?
Thats fine as that is due to funds accrued, earned and received whilst you were resident and living in the UK. Their issue is the receipt of funds from abroad once living in Australia due to the question that they may have been earnt whilst you were an Australian resident and therefore tax is payable on them.Pommygranite said:
yorky500 said:
What about if you are transferring funds over to Aus which you have saved whilst in a different Country - i.e. the funds are being transferred so you can get a decent start over there?
Thats fine as that is due to funds accrued, earned and received whilst you were resident and living in the UK. Their issue is the receipt of funds from abroad once living in Australia due to the question that they may have been earnt whilst you were an Australian resident and therefore tax is payable on them.This is going to prove a headache for me too.
I had an investment that came to fruition in the UK about 12 months after I arrived back in Oz. The investment itself had been three years in the making.
I would presume that ATO would take a amoritized amount for tax over the period I was here e.g. 12 months out of the 36 but advice I'm getting is they will require CGT on the whole lot!!
It's a seven figure sum too so no small amount we're talking about!
I had an investment that came to fruition in the UK about 12 months after I arrived back in Oz. The investment itself had been three years in the making.
I would presume that ATO would take a amoritized amount for tax over the period I was here e.g. 12 months out of the 36 but advice I'm getting is they will require CGT on the whole lot!!
It's a seven figure sum too so no small amount we're talking about!
Depending on the terms of your investment. If its a final one off payment on the 3rd year only then you'll be hit will CGT on the entire profit. Its like buying and selling shares. But remember because you have had the investment for over 12 months then you will be taxed based on 50% of the capital gains and if the investment is in your and your wife's name then you can split the profit and hopefully pay less tax.
If you're talking about a 7 figure profit then I would move overseas for a bit and become non resident for tax purposes and then transfer the money in. Either way you will without question get a call from the ATO if you transfer the fund into Australia purely because of the size of the fund. Maybe not straight away but you will get a call.
If you're talking about a 7 figure profit then I would move overseas for a bit and become non resident for tax purposes and then transfer the money in. Either way you will without question get a call from the ATO if you transfer the fund into Australia purely because of the size of the fund. Maybe not straight away but you will get a call.
Pommygranite said:
Or keep in the UK and spend here on a UK Credit Card 
The problem with that route is the credit card charges and low exchange rate you will get withdrawing from a credit card. Its going to cost you about 7% doing it this way. This will only work if you are dealing with small amount. If its a 7 figure sum then you'll be going to the ATM everyday for years.If you need large sum for say a house deposit then even if you do small withdraws and when you deposit over $10K or lots of small amounts that totals a large deposit into your bank account here then the ATO will also call you as well.
onny said:
Pommygranite said:
Or keep in the UK and spend here on a UK Credit Card
The problem with that route is the credit card charges and low exchange rate you will get withdrawing from a credit card. Its going to cost you about 7% doing it this way. This will only work if you are dealing with small amount. If its a 7 figure sum then you'll be going to the ATM everyday for years.If you need large sum for say a house deposit then even if you do small withdraws and when you deposit over $10K or lots of small amounts that totals a large deposit into your bank account here then the ATO will also call you as well.
Just spend on the CC don't draw cash off.
onny said:
Pommygranite said:
Or keep in the UK and spend here on a UK Credit Card
The problem with that route is the credit card charges and low exchange rate you will get withdrawing from a credit card. Its going to cost you about 7% doing it this way. This will only work if you are dealing with small amount. If its a 7 figure sum then you'll be going to the ATM everyday for years.If you need large sum for say a house deposit then even if you do small withdraws and when you deposit over $10K or lots of small amounts that totals a large deposit into your bank account here then the ATO will also call you as well.
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