Petkula73 Posted April 8, 2015 Share Posted April 8, 2015 Hi I own a property in the UK and have a question around capital gains tax. I've owned the house since 2003 and been in Australia since 2011, on a 457 until Nov 2013 then a 186 PR visa. I understand the house is exempt from CGT for six year. Is this six years from first entry or six years from the PR grant? Also, when calculating the CGT, would we use the historical exchange rate in 2003 for the purchase price, or the current rate. There's a huge difference... Either way, we plan to avoid this rip off tax and sell up before payment is due. Would the deadline therefore be 2017 or 2019? Thanks Quote Link to comment Share on other sites More sharing options...
Marisawright Posted April 8, 2015 Share Posted April 8, 2015 I own a property in the UK and have a question around capital gains tax. I understand the house is exempt from CGT for six year. Is this six years from first entry or six years from the PR grant? The date is six years from the date you last lived in the house. Calculating the CGT is complicated, it's not just the sale price minus the purchase price, you have to add back in various expenses along the way. So I would get an accountant to work it out for you if you're going to incur it. Quote Link to comment Share on other sites More sharing options...
scuffythetugboat Posted April 9, 2015 Share Posted April 9, 2015 Wouldn't you be liable for any capital gain in the UK when you sell up then have to declare any money you make out of it (if any) to the ATO as income for that year? Quote Link to comment Share on other sites More sharing options...
KirkyG Posted April 9, 2015 Share Posted April 9, 2015 Wouldn't you be liable for any capital gain in the UK when you sell up then have to declare any money you make out of it (if any) to the ATO as income for that year? Not if the house was your last primary residence and you last lived in it less than 6 years ago. Quote Link to comment Share on other sites More sharing options...
Guest Guest26110 Posted April 26, 2015 Share Posted April 26, 2015 Hi I own a house in the UK, I'm lead to believe that capital gains tax will affect us all with homes in the UK from April 2015, I'm on the understanding that any increase in value from April 2015 will be taxed, my question is who makes the decision regarding its possible increased valuation an independent or government valuer? Please correct me if any of my info is incorrect Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted April 26, 2015 Share Posted April 26, 2015 Hi I own a house in the UK, I'm lead to believe that capital gains tax will affect us all with homes in the UK from April 2015, I'm on the understanding that any increase in value from April 2015 will be taxed, my question is who makes the decision regarding its possible increased valuation an independent or government valuer? Please correct me if any of my info is incorrect Get an independent valuation. The Valuation Office (VO) has the right to challenge any valuation but they are very unlikely to do if you have instructed an independent valuer. Quote Link to comment Share on other sites More sharing options...
Gbye grey sky Posted April 26, 2015 Share Posted April 26, 2015 Hi I own a property in the UK and have a question around capital gains tax. I've owned the house since 2003 and been in Australia since 2011, on a 457 until Nov 2013 then a 186 PR visa. I understand the house is exempt from CGT for six year. Is this six years from first entry or six years from the PR grant? Also, when calculating the CGT, would we use the historical exchange rate in 2003 for the purchase price, or the current rate. There's a huge difference... Either way, we plan to avoid this rip off tax and sell up before payment is due. Would the deadline therefore be 2017 or 2019? Thanks I would concern myself with UK CGT first as this is likely to get you before Oz CGT. Quote Link to comment Share on other sites More sharing options...
Guest Guest26110 Posted April 26, 2015 Share Posted April 26, 2015 Get an independent valuation. The Valuation Office (VO) has the right to challenge any valuation but they are very unlikely to do if you have instructed an independent valuer. Many thanks Quote Link to comment Share on other sites More sharing options...
Bungo Posted April 26, 2015 Share Posted April 26, 2015 Not if the house was your last primary residence and you last lived in it less than 6 years ago. I don't think that is correct. The six year rule is nothing to do with the UK for a start, it is an Australian thing. The rules in the UK changed this month too, so OP needs to look at that. Quote Link to comment Share on other sites More sharing options...
KirkyG Posted April 28, 2015 Share Posted April 28, 2015 I don't think that is correct. The six year rule is nothing to do with the UK for a start, it is an Australian thing. The rules in the UK changed this month too, so OP needs to look at that. Agreed, sorry for being unclear, my understanding of the situation is The CGT in the UK has been reset as at the 5th April, so whatever you paid for the house is irrelevant. You need to understand the valuation of the house as at this date eg. House valuation as at 5th April = 400,000, House sale price = 410,000 means a capital gain of 10,000 which is taxed appropriate to your tax band. If you sell it at the same amount as the valuation then there is no taxable benefit. The CGT in Oz is as follows; IF the house in the UK was your last primary residence and you have not purchased property in Australia, then you have 6 years from the point at which you last resided in that house before there is a capital gain due. Both the above are appropriate to my situation but in cases like this I thoroughly recommend taking expert advice. Quote Link to comment Share on other sites More sharing options...
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