sale of house in uk and transfering money to oz

[sharpie]

Hi all

 

I am in the process of selling my house in the uk and will have a substantial sum of profit from the house sale. I have a question, when i sell my house and look to transfer the money across to oz will i get taxed from the uk before i transfer it? Also will i get taxed from this end by taking the money in to the country?

Any help would be appreciated!

Thanks

Gordon

[Guest Hacking family]

we used moneycorps to transfer our money and we didnt pay tax, we just set up a bank account with National Australia Bank (NAB) before we got to Australia and once we had moved to Australia and verified our bank account in person we got moneycorps to transfer our money to our new account.

[NicF]

If the house was your home rather than an investment property then there is no tax to pay at either side. If you left the money in the UK and waited for the exchange rate to improve then I think you may be liable to pay tax in Australia on the difference between what it was worth in dollars when you moved over and what you actually got in dollars when you transferred the money. Not really sure how that all works though as we moved our money not long after we moved ourselves.

[Rupert]

Hi all

 

I am in the process of selling my house in the uk and will have a substantial sum of profit from the house sale. I have a question, when i sell my house and look to transfer the money across to oz will i get taxed from the uk before i transfer it? Also will i get taxed from this end by taking the money in to the country?

Any help would be appreciated!

Thanks

Gordon

 

Not if it is your home and only property no.

[Guest GeorgeD]

You don't pay tax on transferring money in or out of Australia. There is no limit to this either. You pay tax depending on how you earn it...so a transfer isn't taxable...you're not earning anything.

 

If it was your primary residence in the UK, then you won't have to pay CGT. If you haven't moved yet, then you aren't liable for tax in Oz...you only start paying once you move there (they don't backdate tax for things you've earned previously.)

 

As someone mentioned above...if you sell the house when the Exchange rate is x amount, and keep the cash in the UK, then transfer when the rate has changed to Y rate and you now get a lot more dollars than you would've done at X rate, then you should actually declare this on your tax return as the difference is seen as a foreign exchange gain. Some of this is taxable. Expect to see posts soon on 'how will they know, they're never going to catch you, I didn't bother, etc' It is in there, and what you decide to declare is between you and the ATO isn't any of my business. It hasn't been relevant for many people over the last few years as the pound dropping against the dollar has pretty much always meant there was a forex loss as opposed to a gain, but now the dollar is weakening it may actually be someothing more people find relevant to them. Remember, it's a tax on the forex gain, not the whole sum...so if you sold and got the equivalent of $500,000 and then decidede to wait 6 months, until the rate had changed to the equivalent of $510,000, then you have 'gained' $10,000...which may be liable for tax...peak to an accountant to be sure. Here's a link to the ATO's website about Forex...http://ato.gov.au/Business/Forex/In-detail/Overview/Foreign-exchange-(forex)--overview/

 

There may be allowances or other caveats where you don't need to declare it. I am no expert, so don't take this as gospel!