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Gemsallen

Transferring money made from UK property sale - tax advice

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Hi, been living in Australia for years and now dual bristish and Australian citizen. I’ve sold my UK property and wondered if anyone has done the same and how that effected their Australian tax return? Do you have to pay capacitor gains tax? How does it work? 

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1 hour ago, The Pom Queen said:

Have a chat with @Andrew from Vista Financial He will be able to help

Actually I think @Alan Collett from GM Tax might be a better bet. (Not that I don’t think Andy isn’t wonderful but it’s not really his area of expertise).

Edited by NicF
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9 hours ago, Gemsallen said:

Hi, been living in Australia for years and now dual bristish and Australian citizen. I’ve sold my UK property and wondered if anyone has done the same and how that effected their Australian tax return? Do you have to pay capacitor gains tax? How does it work? 

I think you mean capital gains tax not capacitor gains tax. A capital gain could have a big impact on your Australian tax return - but there are exemptions that will reduce it significantly or even extinguish it altogether. You don't pay CGT on your home for example - and that can continue for 6 years after you stop living there. The gain is cut in half if you've held the asset for more than a year. You don't pay any CGT on gains that were made before you became liable to Australian Tax (i.e. the base would be the value of the property when you moved to Australia permanently not what you paid for it). Once the taxable capital gain is worked out after all these adjustment it's added to the rest of your income for the year and that's the amount you pay tax on (there's no separate CGT payment as such).

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Chartered Accountant (England & Wales); Registered Tax Agent & Fellow of The Tax Institute (Australia)

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On ‎13‎/‎01‎/‎2018 at 13:41, Gemsallen said:

Hi, been living in Australia for years and now dual bristish and Australian citizen. I’ve sold my UK property and wondered if anyone has done the same and how that effected their Australian tax return? Do you have to pay capacitor gains tax? How does it work? 

You may have to pay CGT (Capital Gains Tax) but only if there is a gain of course.

Whether there is a gain or not will depend broadly on the value of the property when you became Australian resident in Aussie Dollars (ie exchange rate at that date) against the value of the sale again in Aussie Dollars on that date.

If there is a gain as Ken says above there then may be exemptions so that it is mitigated or even extinguished altogether.

Have you also considered the UK side of things.....................capital gains tax was introduced on residential property for non UK residents from (I think) April 2015.

I recommend that you seek UK and Australian Tax advice to discuss any gains that may apply to you and what potential exemptions may apply if a capital gain does exist.

Regards

Andy


Financial Adviser (FPA Member AFP ®) Specialising in UK Expat Advice and Pension Transfers / AR-322874 /AFSL-234951

Accredited Mortgage Adviser (MFAA Member)

Director  - Vista Financial Services – www.vistafs.com.au 08 8381 7177

Vista Financial Knowledge Centre: www.vista.financialknowledgecentre.com.au  

 

Please note that my advice is general advice only and professional financial advice should be sought for your own personal situation.

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Yes, as Andy says, since 06/04/2015 there's been a CGT position in the UK to consider as well as (possibly) in Australia - including the obligation to lodge a Non Resident CGT Return with HM Revenue within 30 days of the sale completing, whether or not you have any CGT to pay.

Late lodgment of the NRCGT return can open you up to late filing penalties.

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com

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Hi Gemma.

Private message sent to you.

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com

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On 13/01/2018 at 15:49, NicF said:

Actually I think @Alan Collett from GM Tax might be a better bet. (Not that I don’t think Andy isn’t wonderful but it’s not really his area of expertise).

Alan is no longer working as Go Matilda Tax hence I recommended a financial advisor who could pass him to someone more knowledgeable.


If you are depressed you are living in the past. If you are anxious you are living in the future. If you are at peace you are living in the present.

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Alan is still a registered tax agent and is very able to provide tax advice to those that require it.

As indeed are my former colleagues at GM Tax.

Best regards.

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Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com

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