MMac Posted February 14, 2017 Share Posted February 14, 2017 I've seen a solicitor who wasn't able to advise much; grateful for any help. My mother (dual citizen) owns a property in perth she would like to leave to my sister. In 1989, she returned to the UK after 30 years in Oz (my father transferred the property into her sole name in 1993). Ideally, mum needs to get rid of this property asap. Is there any way for her to avoid paying CGT on transfer to my sister? I think the CGT would come to $150,000 (based on assumption of 25% tax payable on increase in value between 1993-2017) which she doesn't have. My sister lives in the house with her husband and children and so we are trying to avoid selling it - just want to give it to her. I assume stamp duty is unavoidable but CGT is more than can be covered. How do Australians pass on the family house? Mum may be able to come and live it in for a while to make it count as her 'primary residence' (as is the case in the UK). But she's 79 so she wold prefer not to. Also - if she dies before giving it away and as a resident of the UK, I presume the estate is liable for CGT at that point anyway? I'm confused. I understand the UK system better, though I'm Australian by birth! Solicitor advised that trust funds aren't an option over here for these purposes. Quote Link to comment Share on other sites More sharing options...
ScottieGirl Posted February 14, 2017 Share Posted February 14, 2017 You have 2 separate problems i) how to legally transfer the house to your sister and ii) how much tax your mum is liable for. You need to speak to a tax agent about the latter. I am not sure as a UK citizen resident in the UK whether your mum would have to declare the sale here but she would have to declare it in the UK as foreign income and pay the appropriate tax there. If she dies then it is part of her estate and taxed as such. There are no death duties in Aus but there are in the UK. For that reason most Aussies leave the house in their will to their relatives who don't cop a penny in tax. Lucky devils. Very complicated, you need expert advice from a tax agent. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted February 18, 2017 Share Posted February 18, 2017 Yes, there are CGT issues to consider in Australia and in the UK - if disposing of the interest now is indeed the way to go. Professional advice is likely to be desirable here. Best regards. Quote Link to comment Share on other sites More sharing options...
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