Paying tax on investments

[suefrater]

Hi there.

 

We have opened an Oz bank a/c because we are emigrating from the U.K in the not too distant future.

 

My question is: Do we pay tax on the interest earned from the money in the Oz a/c.

 

Here in the U.K I do not work and so I am a non-tax payer and I fill out an R85 form in order not to pay tax, so I wondered if the rules were the same there.

 

I don't want to pay unnecessary tax on the money in the Oz a/c while we are still here in the U.K.

 

Thanks for any info

[gar374]

As far as I see it, you're not resident in the country so should not be paying tax there. In the UK you have to be resident for 6 months of the year to be paying tax here...I think.

They also have a tax free earning threshold the same as we do, so unless you're earning over about $18000 in interest, you should be fine.

[Alan Collett]

Hi there.

 

We have opened an Oz bank a/c because we are emigrating from the U.K in the not too distant future.

 

My question is: Do we pay tax on the interest earned from the money in the Oz a/c.

 

Here in the U.K I do not work and so I am a non-tax payer and I fill out an R85 form in order not to pay tax, so I wondered if the rules were the same there.

 

I don't want to pay unnecessary tax on the money in the Oz a/c while we are still here in the U.K.

 

Thanks for any info

 

You should have a 10% withholding tax applied to any interest paid on an Australian deposit account if you are a tax resident of the UK.

 

Once you are tax resident in Australia - and provide an Australian residential address - the interest will be paid gross.

 

Best regards.