hello folks,
We used to live aboard in Europe. Our children were born in the United Kingdom in the decade 2000-2009. Hence the UK government provided some GBP towards each eligible child. See www.gov.uk/child-trust-funds. Afterwards, we emigrated down under as one of their parents is an Australian citizen by birth. We are not UK tax residents, thus neither the parents or children can open new finanical accounts. We still have one active UK banking account and have used this to make additional contributions into these 3 CTFs, aka parental monetary gifts.
Now that each child is about to turn 18 years, the UK rules are that our non-resident child cannot retain the money onwards as they're unable to open a taxfree ISA. Nor open an UK bank account in their own name. Our child will need to contact their CTF provider with their AU bank account for an international bank transfer. These accounts have been listed with ATO as the regulatory reporting body as foreign residents over there.
Our question is whether each child have to declare their ex-UK money in their AU taxation return for when they turned 18 years? All incoming monies were gifts by UK government and their parents. Nobody else. Plus earnings gained or lost during their share-based CTF activity. Any helpful pointers?
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