mickeyrum Posted August 7, 2020 Share Posted August 7, 2020 I'm an Aussie Citizen now and selling my UK property - what are my CGT liabilities in the UK or here Any advice greatly received Cheers Quote Link to comment Share on other sites More sharing options...
Ken Posted August 8, 2020 Share Posted August 8, 2020 I'm assuming you now live in Australia? If so when did you move. Did you live in the UK property before moving? Have you purchased a property in Australia? Sorry for all the questions but it makes a difference to your CGT liabilities - for example for Australian tax you can claim the UK property as your principal residence for up to 6 years after you stopped living there if you haven't bought a property in Australia. You also only have to pay tax on half the gain (where you owned the property for more than a year) that you got after moving to Australia (or after 6 years of it ceasing to be your permanent residence if applicable) and can deduct the UK tax paid on the gain from the Australian tax due. In most cases one or more of the rules means that you can have no Australian CGT to pay. For UK tax, as a starting point take a read of Alan Collett's Article on this website "Living in Australia and Selling a Property in the UK? Watch the UK's Capital Gains Tax (CGT) Regime for Non Residents" 3 Quote Link to comment Share on other sites More sharing options...
Fisher1 Posted August 8, 2020 Share Posted August 8, 2020 (edited) On 07/08/2020 at 11:04, mickeyrum said: I'm an Aussie Citizen now and selling my UK property - what are my CGT liabilities in the UK or here Any advice greatly received Cheers Hi, we moved here in August 2017 when our buy to let property already had a sale agreed. The actual sale didn’t go through till October 2017 which meant we sold it as non UK residents and we had to pay CGT here in Australia rather than in the UK. The CGT this end was calculated on the gain since 2015, while the CGT in the UK would have been calculated on the gain since 2006. A massive difference. Don’t write to the UK to ask for help, they incorrectly told us we had to pay in the UK. There is also a poorly publicised rule that you have to inform HMRC WITHIN THIRTY DAYS if you sell a property after you leave the UK - we wrote and asked them for clarification and they said we could include the gain with our tax return at the end of the year - then fined us for not informing them! The whole thing is an absolute minefield - I strongly urge you to get hold of an accountant who understands both systems and cough up what will seem like a hefty fee ... we did and our accountant not only saved our sanity but saved us a serious amount of money. Thank you Alan Collet. Edited August 8, 2020 by Fisher1 5 Quote Link to comment Share on other sites More sharing options...
mickeyrum Posted August 11, 2020 Author Share Posted August 11, 2020 Thanks Alan 2 Quote Link to comment Share on other sites More sharing options...
Plentymech Posted September 2, 2020 Share Posted September 2, 2020 On 09/08/2020 at 08:35, Fisher1 said: I strongly urge you to get hold of an accountant who understands both systems and cough up what will seem like a hefty fee ... we did and our accountant not only saved our sanity but saved us a serious amount of money. Thank you Alan Collet. Hi, we're getting ready to sell our house once the mortgage is paid off as we can't afford to cover the mortgage in the UK and the rent here so we need tenants and unless we want to sell it very quickly, which would probably mean lowering the recommended price significantly to achieve this. The whole CGT dual taxation thing was already giving me anxiety so this is good to read. I will be definitely be engaging with an agent as you suggest when the time comes. 1 Quote Link to comment Share on other sites More sharing options...
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