JonathanD Posted March 26, 2015 Share Posted March 26, 2015 I hope somebody can help us regarding selling property in the UK? We have been trying to sell our property for 2 years now with several price drops. Our 5 year PR visa is due to expire at the end of this year so will need to set off soon and rent out our house if still not sold. If we sold in say 3 years from now whilst a Permanent Resident in Australia under their tax rules which I believe they tax worldwide, would we be liable for Capital Gains Tax on the profit made on house sale (if any) considering this is our residential property and not an extra investment as such. I understand that any profit from rental would be taxed but surely not on final sale as CGT? Link to comment Share on other sites More sharing options...
srg73 Posted March 26, 2015 Share Posted March 26, 2015 I stand to be corrected however you have 2 years under UK law to sell your property which you do not reside at prior to being liable for capital gains tax. Simon Link to comment Share on other sites More sharing options...
JonathanD Posted March 26, 2015 Author Share Posted March 26, 2015 Thanks Simon for your reply - I was referring to CGT in Australia? Link to comment Share on other sites More sharing options...
newjez Posted March 26, 2015 Share Posted March 26, 2015 Thanks Simon for your reply - I was referring to CGT in Australia? Possibly exchange rate gains too. Why can't you sell it? I thought the market was quite healthy. Link to comment Share on other sites More sharing options...
JonathanD Posted March 26, 2015 Author Share Posted March 26, 2015 Not so easy in the £1.5M bracket! Link to comment Share on other sites More sharing options...
Parley Posted March 26, 2015 Share Posted March 26, 2015 Drop your price and you will sell it. Link to comment Share on other sites More sharing options...
Marisawright Posted March 26, 2015 Share Posted March 26, 2015 I hope somebody can help us regarding selling property in the UK? We have been trying to sell our property for 2 years now with several price drops. Our 5 year PR visa is due to expire at the end of this year so will need to set off soon and rent out our house if still not sold. If we sold in say 3 years from now whilst a Permanent Resident in Australia under their tax rules which I believe they tax worldwide, would we be liable for Capital Gains Tax on the profit made on house sale (if any) considering this is our residential property and not an extra investment as such. I understand that any profit from rental would be taxed but surely not on final sale as CGT? If the UK home was your principal place of residence and you lived in it for at least a year before you left, it's not liable for CGT for SIX years under Australian law. Link to comment Share on other sites More sharing options...
srg73 Posted March 26, 2015 Share Posted March 26, 2015 We are considering selling and although not in th £1.5m range, the agents are suggesting they have people waiting for properties like our to hit the market. In addition, we are going to be realistic about the price. S Link to comment Share on other sites More sharing options...
rammygirl Posted March 26, 2015 Share Posted March 26, 2015 I think you might find the capital gains will be claimed first by the UK as that is where the gain arose. They will take the gains under UK rules. You then declare it on the Aus return and they tax it by their rules but deduct any tax already paid in the UK. Check with an accountant to be sure, and the rules about selling after vacating changed recently reducing the time. new rules come in April this year about this UK will now tax non residents for sale of assets. Many countries, including Australia do this already. Link to comment Share on other sites More sharing options...
newjez Posted March 27, 2015 Share Posted March 27, 2015 Not so easy in the £1.5M bracket! I think you might find you're not in this price bracket anymore. You have to compete with the market. Do you really want to rent it out? It doesn't sound like an ideal rental. Link to comment Share on other sites More sharing options...
Paul1Perth Posted March 27, 2015 Share Posted March 27, 2015 We are considering selling and although not in th £1.5m range, the agents are suggesting they have people waiting for properties like our to hit the market. In addition, we are going to be realistic about the price. S When we sold ours in 92 we had it valued at 55,000 pounds. We had only had it 3 years, bought it for 22,000 but spent a lot on it. New kitchen, bathroom, central heating boiler, re plastered from top to bottom, re-wired. We put it up for sale privately for 50,000 and the first day two couples who lived close came and they both wanted it. They were both working in decent jobs at the time and we thought job done. We would have sold to the one that gave us the highest offer. Few days later they came back and neither couple could get a loan for the required amount. We were surprised, they were devastated and tried to get us to drop the price. We weren't really in a rush as it was a while before we were emigrating so hung on. Couple of weeks later a single girl came round with her Dad who was a bank manager. She bought it. Must be who you know in getting a mortgage too. Don't know what happened to the bank lending over the next few years? They must have thrown the rule book out the window as house prices carried on shooting up for a few years after we left. Maybe if the banks had kept a lid on their lending practices there would never have been a GST and young people would still be able to get a house without signing their life away. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted March 27, 2015 Share Posted March 27, 2015 We are considering selling and although not in th £1.5m range, the agents are suggesting they have people waiting for properties like our to hit the market. In addition, we are going to be realistic about the price. S I couldn't help but smile because all estate agents will spin that line regardless. Our agent had a list of people he knew were waiting for a house like ours. All those initial viewings came to nought however so it was typical bullshit. That said a couple of weeks later a new viewing and we have had an offer yay! What's more they are happy to wait to complete in July. It is a seller's market here in Surrey though. Cannot speak for elsewhere in the country. :cool: Link to comment Share on other sites More sharing options...
JonathanD Posted March 27, 2015 Author Share Posted March 27, 2015 'Thanks for your feedback - another question is if we switched to a 'buy to let' mortgage due to our lender not allowing a residential mortgage anymore even though it is the property that we lived in for many years before emigrating would this still be exempt from capital gains in Australia under their 6 year rule. UK Capital gains would be another thing to think about! Link to comment Share on other sites More sharing options...
newjez Posted March 27, 2015 Share Posted March 27, 2015 'Thanks for your feedback - another question is if we switched to a 'buy to let' mortgage due to our lender not allowing a residential mortgage anymore even though it is the property that we lived in for many years before emigrating would this still be exempt from capital gains in Australia under their 6 year rule. UK Capital gains would be another thing to think about! Can't see it being a problem as the ownership won't have changed. May be an idea to get some valuations before you leave, as it may make life easier later on. Link to comment Share on other sites More sharing options...
Marisawright Posted March 27, 2015 Share Posted March 27, 2015 'Thanks for your feedback - another question is if we switched to a 'buy to let' mortgage due to our lender not allowing a residential mortgage anymore even though it is the property that we lived in for many years before emigrating would this still be exempt from capital gains in Australia under their 6 year rule. UK Capital gains would be another thing to think about! The Australian government doesn't care how you finance the property. Link to comment Share on other sites More sharing options...
ramot Posted March 27, 2015 Share Posted March 27, 2015 Get a valuation pdq as from April 1st the tax rules change, and you will pay more tax when you sell, as non habitually resident in UK. Alan Collett posted about this and we had our properties valued this month, so we will only pay tax on the increase in value from 1st April, when we sell. Link to comment Share on other sites More sharing options...
KirkyG Posted April 6, 2015 Share Posted April 6, 2015 'Thanks for your feedback - another question is if we switched to a 'buy to let' mortgage due to our lender not allowing a residential mortgage anymore even though it is the property that we lived in for many years before emigrating would this still be exempt from capital gains in Australia under their 6 year rule. UK Capital gains would be another thing to think about! First I've heard about this six year rule for the AU CGT. Is that definitely the case? Also Secondly my understanding is that as a non resident landlord, new ruling means I am only going to be taxed a gain for the increase since 5th April 2015. Is this correct? Cheers Kirk Link to comment Share on other sites More sharing options...
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