Property tax question

[watford]

Hello,

just a quick question.

we are about to sell our house in the UK, we have lived in Australia for 2 years, we bought a house here after 6 months.

the house in the UK will be sold for more than the purchase price, after paying the uk mortgage any monies left we would like to pay off some of our australian mortgage, would we have to pay tax in Australia on any profits made from the uk house sale.

 

 

Thanks alan

[Notts]

Do you know the value in Aus$ now and when you became tax resident in Australia? That is what determined whether there could be a tax liability.

 

As you have bought a house here, the 6-year exemption available on the sale of your main residence won't apply.

[watford]

Thanks first

but I'm sorry do you mean how much was the house worth when we first moved over we moved over as PR

 

thanks again

[Notts]

Yes, when you moved over how much was it worth ($).

[watford]

Yes it's now worth $40000 more than when we moved over

but can I add that we spent $40000 on renovations

 

thanks

[Notts]

The cost of renovations/improvements can be added to the cost/initial value when calculating any gain. (assuming you didn't deduct them as repairs while it was rented)

[watford]

Thanks that a great help