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CGT on UK property


Tarby777

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Hi all,

 

Does anyone have the fine detail on CGT (to HMRC or the ATO) when, as a British citizen in Australia as a permanent resident, you sell a UK property that you have received rental income from?

 

The way I understood it was that as long as you kept the proceeds from the sale of the house in a UK account for two years, there was no CGT to worry about. However, some HMRC notes for my tax return allude to possible CGT on the sale of UK properties that you have received rental income from.

 

I haven't sold the house yet but am certainly thinking about it. It was our family home for 10 years till we emigrated 2 years ago... does anyone know the formula / rules as they apply to me?

 

TIA

Tarby

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I asked HMRC this and was told:

Dear Sir,

 

There will be no CGT if you either:-

 

Sell within 3 years of leaving it

 

or

 

Rack up at least 5 full tax-years of non-residence eventually and sell at any time whilst non-resident.

 

Not sure about to the ATO though - but bear in mind it would only be on any gain since you left. We left in 2009, and the value has decreased since then so I'm fairly relaxed about the whole thing. Ours was also family house for ten years!

 

We have also received rental income from it, which is now taxable to the ATO since I became a permanent resident in August (not while I was temporary).

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Hi all,

 

Does anyone have the fine detail on CGT (to HMRC or the ATO) when, as a British citizen in Australia as a permanent resident, you sell a UK property that you have received rental income from?

 

The way I understood it was that as long as you kept the proceeds from the sale of the house in a UK account for two years, there was no CGT to worry about. However, some HMRC notes for my tax return allude to possible CGT on the sale of UK properties that you have received rental income from.

 

I haven't sold the house yet but am certainly thinking about it. It was our family home for 10 years till we emigrated 2 years ago... does anyone know the formula / rules as they apply to me?

 

TIA

Tarby

 

I am 100% sure, that where you keep the proceeds after selling the property has bo bearing on the tax situation.

 

I think there are more factors to the situation to comment on what your exact tax situation will be.

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