fusela

2 hours ago, Marisawright said:

Actually everyone agrees. To summarise what everyone has said:

I said you probably won't get a Buy to Let mortgage, but it's possible you won't need one.  However, although @kmrg got approval to rent out their home with an ordinary mortgage, others have been refused - so if you're going to do it, make sure you get permission BEFORE you leave the UK, so you've got time to change your plans if necessary.

As for tax:  @DIG85 and I have said the same thing. If you sell your home before you leave the UK, you will not be liable for any tax on the proceeds in either country.  

If you hold onto your property for any length of time, there may be CGT payable to the British taxman.   There won't be any CGT payable to the Australian taxman for 6 years, provided you're just renting in Australia.  Once you buy a home in Australia, you'll start to be liable for CGT but not for the whole amount.  However, do remember that the only reason you'll pay CGT is if you're making a profit, and if you're making a profit, you can afford to lose a bit of it in tax - you'll still be in front.

If you are going to rent out your property, then I do recommend using a good tax agent who knows the tax law in both countries (I've mentioned Alan), because it is fiddly.  Once you've seen how they do it, you can decide whether you want to DIY or go on using them, but if you do decide to DIY, you can have more confidence that you're doing it right.

Many Thanks,

I agree that you I can get consent to let with my mortgage provivder, however it's only valid for a year or two, and then I'll be breaching the T&C's of the mortgage.  If it's longer term.

I'm more worried about the tax implications and will reach out to Alan for more clarity...

Thanks for your input - I'm probably worrying too much but I need to get these things right in my head.  The last thing I want is to me liable for CGT in both countries - while I think I understand the situation, I need ensure I've got all the facts before I make a decision.

-fusela

Thank-you all for your input.

As there are a lot of differing views, I'll get some professional advice. I have the time and want to make sure that I get this right!

Hello Everyone,

I've had a good look over this forum but can't find what I am looking for and am hoping that the forum can help.

My Wife, Daughter and I are all dual UK/Australian Nationals, we all last lived in NSW 5 years ago and are planning to move back.

Since living in the UK, we have aquired a property and need to examine to options of keeping/selling the property.

We are on a fixed rate mortgage which ends this year.

The options as I see them are:

1. Sell the property prior to moving to Australia

• As this is our Primary Residence in the UK there will be no CGT
• What would be the impact of this in the transtion year - would any tax be payable to the ATO on the sale of the house?

2. When the fixed rate mortgage ends - transition to a Buy to Let Mortgage.

• I see from the board that re-mortgaging in the future is difficult
• What are the implications of sellng in the future?
• Where would tax be payablel in the furture?  The UK, Australia or both?

I know lots of you will have been in this situation before so would love to hear your experiences.

My last move to Australia was much more simple - No property, No wife and no child!

Thanks!

Fusela