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Originally Posted by immy21
I have 3 rented flats that my accountant tells me if I hold onto for two years after entering oz I will then not pay ANY capital gains tax on their sale.
Speak to an accountant or buy a tax guide
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G'day
As Alan said, you can do it in such a way that you wont pay UK Capital Gains Tax, however if you are living in Aust on permanent residence or citizenship, then the capital gain is taxed here.
The tax will be determined by the sale price, less the purchase price, plus or minus any currency gains/losses as a result of changes in the exchange rates in that time then divided by two and tax assesses at your marginal rate (probably 45%) on that.
So as a general guide expect to pay tax of about a quarter of the gain from when you arrived in Aust to the time of sale.
Don't forget, that while you're here the rent from the UK properties is considered to be part of your taxable income here but you can also claim as a tax deduction any interest you pay on your mortgages in the UK.