Taxation on money brought into the UK from Australia

by **Cupcakes** on Sat Jul 02, 2011 6:52 pm

Hi,
I am a UK citizen and moved to Sydney, Australia in 2000 and worked for an Australian company from which I later took redundancy in 2005 and received a redundancy payment which is still in a savings account in Australia. I moved back to the UK 3 years ago and would now like to bring the money back to the UK.

Can you advise if I need to pay tax on this money? I paid tax on the money at the time of payment and with the UK and Australia having a reciprocal tax agreement, I assume not. Am I correct?

Many thanks

by **maths** on Sun Jul 03, 2011 10:37 am

Any interest on the account following your return to the UK should have been declared on your UK tax return; any tax paid on the interest in Australia (if any) can be offset against the UK tax charge.

When you remit the monies, depending upon the movement of the £ against the A$, there may be a UK capital gain although you have an annual exempt amount of £10,600 to offset against it.

by **Cupcakes** on Sun Jul 03, 2011 6:56 pm

Thanks Maths

How can I find out if there is a UK capital gain on it?

by **maths** on Sun Jul 03, 2011 9:53 pm

Convert the A$ into sterling at date monies deposited and do similar conversion at today's date when monies drawn out and presumably converted into sterling.

Different between two sterling amounts shows gain or loss in sterling.

by **jason13** on Sun Aug 14, 2011 10:15 am

Is it the date money was received or the date when OP moved from Australia back to UK?

(Going the other way, I seem to recall reading that for Australian tax purposes what matters is the value of your assets on the date you become an Australian resident. I don't know if this is really true but if so moving to Australia would be a good way to get around CGT.)