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ISA held in UK


harry

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Hi,

 

I have a significant amount of money in investment ISAs (will be my pension). Looking for some clarity on the rules when I move to Aus.

 

1. I understand I can no longer contribute to the ISAs but, I can keep what I have already invested.

2. Will dividends from the ISAs need to be declared in Aus - will income tax be due on these?

3. If I sell the ISAs, will I need to declare in Aus and pay capital gains tax?

 

Thanks!

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UK pensions of all sorts and Australia brings up a lot of issues that need to be dealt with correctly or you can find yourself with tax issues in both countries. It is very much a specialist area and I can only recommend that you consult an Accountant with qualifications to deal with both tax systems and with a good knowledge of pensions.

 

Andrew Williams of Vista Financial Services contributes a lot of useful advice on Perth Poms and you might wish to consult him with your situation. His contact details are in his signature format and he posts on the Money and Finance threads.

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Thanks Ross.

 

Hello Harry

 

 

 

 

1. I understand I can no longer contribute to the ISAs but, I can keep what I have already invested.

2. Will dividends from the ISAs need to be declared in Aus - will income tax be due on these?

3. If I sell the ISAs, will I need to declare in Aus and pay capital gains tax?

 

 

 

Put simply the fact that they are tax free in the UK is irrelevant to the Australia Tax Office (ATO).

 

They will treated as investments and assessed for tax accordingly, therefore distributions and gains are required to be reported when you do your annual tax return (note though that the cost base essentially begins from date of Australian residence.

 

However if you are going to be on a temporary resident visa the above may not be the case as opposed to if you will be a permanent resident/citizen.

 

You mention this money is going to be your retirement money.......in that case you should consider the merits of cashing out of the ISAs prior to moving to Oz and then re-investing the funds into an Australian Superannuation Scheme when you are here (of course I would advise you seek professional advice on this matter).

 

Kind regards

 

Andy

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