CGT on selling UK shares from Australia?

[TheGreatDane]

Few questions:

Q1: If I sell my UK shares from Australia, will the UK gains be subject to CGT in Australia?

 

Q2: If they are subject to Australian CGT, do they attract CGT from the date of purchase in the UK, or from the date I enter to live in Australia, so any further capital gain from when I arrive, ignoring all previous gains?

 

Background info

I am on a 309 temporary visa and intend to enter the country in April/May 2014.

 

I know if you are on a temporary visa, gains on overseas real estate are not subject to CGT in Australia.

 

The situation changes once you obtain permanent residency.

[Alan Collett]

http://www.ato.gov.au/General/International-tax/Previous-years/Other-foreign-income-of-Australian-residents/Foreign-income-exemption-for-temporary-residents---general-questions/?default=&page=12

 

Hope this helps.

 

Check also the definition of who is a temporary resident. Being in a de facto relationship with an Australian is likely to prejudice the availability of the temporary resident exemption, irrespective of your visa type.

 

Best regards.

[TheGreatDane]

Thanks Alan. Ato's website is poor and doesn't answer any questions.

 

The 309 is temporary in my opinion, it is also referred to as temporary in my visa confirmation from Australia House

 

From immi.gov.au:

 

The Partner (Provisional) visa (subclass 309) lets you:

 

enter Australia and stay here until a decision is made about your permanent Partner visa

 

They seem to agree, otherwise why refer to the permanent part

 

Keen for more views

Edited December 12, 2013 by TheGreatDane

[Alan Collett]

Yes, I agree it is a temporary residency visa - but it doesn't necessarily make you a temporary resident for tax purposes:

http://www.ato.gov.au/General/International-tax/In-detail/Other-foreign-income-of-Australian-residents/Foreign-income-exemption-for-temporary-residents---introduction/

[h=3]Who is a temporary resident?

[/h]You are a temporary resident if:

 

 

• you hold a temporary visa granted under the Migration Act 1958
  
• you are not an Australian resident within the meaning of the Social Security Act 1991
  
  
• your spouse (if applicable) is not an Australian resident within the meaning of the Social Security Act 1991.
  
  

 

The definition of spouse extends beyond a married relationship:

http://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Other-income,-deductions-or-offsets/Entrepreneurs-tax-offset/?default=&page=7

 

Given the arguments I dare say you applied in obtaining a subclass 309 visa you may therefore not be able to claim the temporary tax resident exemption ...

 

Best regards.

[TheGreatDane]

Thanks again Alan

 

Yes it reads that way. Might need some expert legal advice

[akiralx]

Yep, I was on a subclass 309 visa and was a tax resident here long before a permanent resident.

[TheGreatDane]

Thanks. But still doesn't explain the rules for CGT. A 309 is per definition a temporary visa as described on immi.gov.au

[TheGreatDane]

My visa consultant at Australia House also just confirmed the 309 is regarded as a temporary visa. Now need to get confirmation from a tax perspective.