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Tax implications when selling uk house


Dexterdog

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Does anyone know the tax situation if you sell your UK house? We will be transefering the funds from sale to our Oz bank account to purchase new house. Do I need to let UK tax office know - the money won't be hanging about in an account for long so not sure what the situation is. Anyone got any advice/experience if this???? trying to get through to tax office is a very long process so if I can avoid it I will!

thanks.

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Does anyone know the tax situation if you sell your UK house? We will be transefering the funds from sale to our Oz bank account to purchase new house. Do I need to let UK tax office know - the money won't be hanging about in an account for long so not sure what the situation is. Anyone got any advice/experience if this???? trying to get through to tax office is a very long process so if I can avoid it I will!

thanks.

 

Are you simply selling your UK home when you move? If so there are no tax implications.

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  • 2 weeks later...
Apologies, I am selling mine after living here for 3.5 years. Hence the Capital Gain discussion, my misunderstanding.

 

What visa are you on? If you are on a temporary visa no CGT is due. If you are on a permanent visa, you are liable for tax on the gain from when you got your permanent visa to the value it is today. For eg, you moved here on a 457, your house was worth 250,000 when you left the uk and you got PR 2 years later. When you got PR, your house was worth 275,000. Today the value has gone up to 325,000 - you will need to pay tax on the gain (50,000) between 275,000 and 325,000.

If you moved here on a permanent visa, you will pay tax on the gain from when you left the uk - so 325,000 - 250,000 - the taxable gain would be 75,000.

 

Hope this helps.

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What visa are you on? If you are on a temporary visa no CGT is due. If you are on a permanent visa, you are liable for tax on the gain from when you got your permanent visa to the value it is today. For eg, you moved here on a 457, your house was worth 250,000 when you left the uk and you got PR 2 years later. When you got PR, your house was worth 275,000. Today the value has gone up to 325,000 - you will need to pay tax on the gain (50,000) between 275,000 and 325,000.

If you moved here on a permanent visa, you will pay tax on the gain from when you left the uk - so 325,000 - 250,000 - the taxable gain would be 75,000.

 

Hope this helps.

 

I do not believe this is correct at all. Visa status and tax status are not the same thing and in any case you have to consider both UK and Australian tax rules.

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I suspect there will be little CGT to pay if any, but you do need to consult an expert. There is some info on the UK gov site but it's pretty impenetrable. When/if you get an answer could you post the outcome please?

 

The UK has just changed the law so that the Capital Gain has been reset to start from April 5th 2015. I believe Alan Collett made a blog post elsewhere in this forum about it, as regards to the AU situation it depends on whether the property was your primary residence and whether you've had another primary residence (for tax purposes) since. Also there is a 6 year limit on this.

 

But I thoroughly recommend getting (and paying for) professional advice - it may save you thousands in the long run.

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Tax will be payable to the Australian government on any gain of the property's value from when you became an Australian permanent resident to when you sell. This was my experience and we have a specialist tax agent that deals with our affairs as we have complicated financial affairs. You can get further clarification on this on the ATO's website - at the bottom of the page - read the example of Fred.

 

https://www.ato.gov.au/General/Capital-gains-tax/In-detail/International-issues/CGT-on-foreign-residents,-temporary-residents-and-changing-residency/?page=3

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I don't think that it is that simple purpleal - various exemptions can apply where the home can be treated as a main residence even after you move out.

 

There is some useful information here:

 

https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Real-estate/Treating-a-dwelling-as-your-main-residence-after-you-move-out/

 

I still haven't worked out how it all applies to my situation though....

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Tax will be payable to the Australian government on any gain of the property's value from when you became an Australian permanent resident to when you sell. This was my experience and we have a specialist tax agent that deals with our affairs as we have complicated financial affairs. You can get further clarification on this on the ATO's website - at the bottom of the page - read the example of Fred.

 

https://www.ato.gov.au/General/Capital-gains-tax/In-detail/International-issues/CGT-on-foreign-residents,-temporary-residents-and-changing-residency/?page=3

 

 

Did you own any other properties when you sold the property on which you paid tax?

 

Best regards.

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