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Member
Posts: 9
| Hi,
Was wondering if you could give me some advice. We are at the point of starting the migration process. I have an big issue I want to clarify or it could cost me £££££.
I have a property in UK which is worth positive equity at present value around £400,000, we are looking at initially going to Australia with a living amount £40-50,000 then sell our property after a year there. As both are large amounts what would be the best way to transfer both & will I have to pay tax on either in either country?
Also I keep hearing about fixing a rate, what is that about & could I benefit?
My last question is a concern as to whether I would have to pay any capital gains to any Government because of such a large amount (or any tax really)? as my property is solely in just my name.
Sorry this will be my last questions - We have a private pension also that has been paid into for about 15yr but has not done so in the last 10 years - could we transfer that?
Any advice would be great, thanks.
Mandrew | |
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Finance Expert
Posts: 12
| Mandrew,
In terms of the tax and pension advice, you would need to speak to Siddalls. They will be able to advise you on the most appropriate course of action.
With regards to actually moving the funds abroad, then the most cost effective way to move it is by using a broker, as you should get a better rate of exchange than if you just did it via your bank. HiFX also wont charge you for the service, so no transfer fees, no commission fees and a refund on any receiving charges the bank in Oz may or may not levy.
Once in Oz, you will need to use our Sydney branch for the remainder of the funds as there are different rules and regulations to adhere to, but the service is exactly the same.
In terms of fixing a rate, this is called a forward contract or buy now pay later option. you can fix into a rate with just a 10% deposit, and set a date in the future (up to 2 years down the line) to pay the remainder. this delivery date can also be put back, giving you flexibility in, for example, the sale of your house - very useful given the current issues with the UK housing market!
The forward contract gives you complete peace of mind knowing exactly how many dollars you will have when you arrive in Aus, and means you take out all the risks of the market moving against you. In August last year, the rate peaked at $2.56, and it is now around the $2.08 mark - 46 cents difference which, in your situation, is over $180,000!
Another option you have is to set a rate that you would like to achieve with a "market order", which is essentially an automatic buying tool. if the rate hits your target, the money is bought for you. It is a great way of achieveing the spikes in the market and your dealer will work with you to set a prefered, but also realistic rate ($3.00 may be pushing it a little!). Of course, the risk is the level is never reached, but it can be cancelled at any time.
So the importance of planning and getting a strategy that will best fit you is plain to see. As everyone's situation is different, it is worth speaking to a consultant about your options. This is completely free and carries no obligation.
The number for the Migration Team at HiFX is 0845 370 5271.
Good luck!!
Richard, HiFX.
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| | All communications contained in this message board are 'information only' and should not be regarded as 'advice'. Only your appointed agent can provide advice as these are the requirements of the Australian Migration Act. You are advised that action taken as a result of any information received that does not come from your appointed agent may jeopardise your migration application.
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Transfering money
