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Selling a UK property after arrival in Australia


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Hi everyone

I wonder if anyone can provide us with any advice? We are still currently living in the UK, awaiting the sale of our UK house to complete.  As soon as we have the funds from this (hopefully 8 weeks) we will be moving to Perth, WA.  We also have another property in the UK (father-in laws house), which we recently inherited.  This house is currently being renovated, which should be completed in approximately 10 weeks.  We will then be listing this house for sale, hoping it will sell fairly quickly.  We are going to have to pay inheritance tax in the UK for my father-in laws estate.

My question is, will we be subject to any taxes on this property in Australia after we sell the property in the UK? Most of our money from the sale of our UK home, and the money from the sale of my father-in laws house will be left in a UK bank account until we have decided that we definitely want to stay in Australia, and when (if) the exchange rate improves.

I would be grateful for any advice.

Thanks

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Guest The Pom Queen

Not if you have already paid tax on it in the UK but maybe check with one of our financial advisors for the best way forward. Also why not sign up for a free moneycorp account then you can keep an eye in the exchange rate and lock in a higher rate.

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I anticipate you are selling your late father in law's house in your capacity as executors.

Once the property has been sold and the IHT accounted for to HM Revenue the proceeds of the estate can be appropriated to the beneficiary/ies of the estate.

Until those funds are appropriated the beneficiary/ies does/do not own the asset.

A planning point to watch with the administration of the estate relates to the residence of the executor/s - it is generally best to ensure executors are resident in the UK.   For this reason non resident executors will often take what is called "power reserved."   Discuss this with the professional (solicitor or accountant) advising the executor/s.

Best regards.

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