Hi, I'm sure I've read somewhere that if I bring money over from the UK I will be taxed on any increase in it's value due to exchange rate fluctuations.

Now, this increase, is it based on rates at the time I became resident for tax purposes, (January 2004) or the date I got the money (June 2004)??

Also, I understand that if the amount is less than AUS$250K then I can put in an "election" to have any tax waived. What is an election (besides when you decide to vote for one liar instead of the other!)?

There's a point at which some need to take formal advice - and I think you might be there!

If you want to discuss this more fully please call my Australian CA colleague John Griffiths on 07 3833 3999.

Best regards.

Hi Alan, thanks for the advice and contact here in Brisbane as well.

Does John do Tax returns as well?

Yes he does.

Best regards.

quote:

---

Originally posted by Simtech:
Hi Alan, thanks for the advice and contact here in Brisbane as well.

Does John do Tax returns as well?

---

Alan,

Many thanks for John's number. I have spoken with him and one of his partners about some FP issues and found everyone at Gateway to be freindly and proffesional.

I would reccomend them to anyone in the Brisbane area seeking financial advice, planning or investment.

Cheers, Pete

I'm really confused by this!

I spoke to the ATO and they said that we didn't need to declare it on our tax return as the money in the UK was classed as capital and all we were doing was exchanging it from GBP to AUD.

Based on the news brief that you did on your site Alan, we worked out that we made a loss on exchanging the money.

Are the ATO correct?

I don't really want to pursue things further if what they are saying is correct.

Cheers

Alex

Hi Alex,

I've spoken to the FA that Alan recommended and he advised the same. You do not get taxed on the capital but on any profit you make in the exchange rate. ie If when I arrived in December the exchange rate was AUS$2.5 and had exhanged UKP100000 then I would of got $250000.

However, the exchange rate today is around AUS$2.6 and I would get $260000 therefore in the eyes of the ATO I made $10000 profit which I have to pay tax on.

But if the exchange rate today was $2.4 then I would have a loss of $10000 to offset against my tax return!

So, it works both ways. This has been confirmed by Alan, the FA I spoke to and a colleagues FA as well.

Cheers Pete

quote:

---

Originally posted by Simtech:
Hi Alex,

I've spoken to the FA that Alan recommended and he advised the same. You do not get taxed on the capital but on any profit you make in the exchange rate. ie If when I arrived in December the exchange rate was AUS$2.5 and had exhanged UKP100000 then I would of got $250000.

However, the exchange rate today is around AUS$2.6 and I would get $260000 therefore in the eyes of the ATO I made $10000 profit which I have to pay tax on.

But if the exchange rate today was $2.4 then I would have a loss of $10000 to offset against my tax return!

So, it works both ways. This has been confirmed by Alan, the FA I spoke to and a colleagues FA as well.

Cheers Pete

---

Thanks Peter.

This is how I understood it to work, but for some reason the ATO didn't understand what I was saying to them.

The person I spoke at the ATO was just reading the web pages I was and trying to understand them!

I'll speak to an FA and get them to help with it.

Cheers

Alex

I have read this thread with interest and it would appear that I may have made an exchange rate loss based on the difference in rates from when I arrived in Australia and when I brought over money from the UK.

Has anyone actually submitted a tax claim to the ATO of this type and had it accepted?

When I spoke to the ATO they were very vague on the issue and I am interested to know if there are any evidence of successful claims.

jandj

I've read that you can only offset currecy losses against currency gains not income generally.

Where was that, Jim?

Best regards.

quote:

---

Originally posted by jim:
I've read that you can only offset currecy losses against currency gains not income generally.

---

if you become a resident for tax purposes and some time later, you have money released from a house sale,
surely tax shouldnt be an issue,
due to you not phsyicaly having the money at an earlier date?