Chortlepuss Posted October 17, 2021 Share Posted October 17, 2021 Hi all - Hubby and I bought our UK property in 2017. I lived in the property initially for 3 months. It has been let ever since. My husband has never lived in the property, although it is joint owned. It has increased in value since we bought it - the gain will probably be about £40K after expenses. We retire next year and it makes financial sense to sell it (sadly as I’d hoped to keep it as a bolt hole!) I suspect that I’d get a little private residents relief - but my husband would get none. Would he be entitled to this if we moved back in to the property before selling? (we may have to do this anyway to refurbish it prior to sale). Has anyone done anything similar and in a position to offer advice? Of course this would be dependent on us being able to travel freely by next July Thanks! Quote Link to comment Share on other sites More sharing options...
Marisawright Posted October 18, 2021 Share Posted October 18, 2021 Are you absolutely sure it will make financial sense to sell it? Don't forget you have both Australian and UK taxes to think of, and there is no way to avoid Australian capital gains as you didn't live in the property for long enough before letting it. I know it's a cost to get someone like @Alan Collett to run all the tax numbers for both jurisdictions, but if you don't, it could be a very expensive mistake. 1 Quote Link to comment Share on other sites More sharing options...
Chortlepuss Posted October 18, 2021 Author Share Posted October 18, 2021 6 hours ago, Marisawright said: Are you absolutely sure it will make financial sense to sell it? Don't forget you have both Australian and UK taxes to think of, and there is no way to avoid Australian capital gains as you didn't live in the property for long enough before letting it. I know it's a cost to get someone like @Alan Collett to run all the tax numbers for both jurisdictions, but if you don't, it could be a very expensive mistake. I need to sell it to afford a better property here and bring the £ over for inheritance tax reasons. We can’t raise a sensible rate mortgage on it and the conditions for landlords are getting tougher all the time - soon we’re going to have to install a heat pump, despite the property having a new boiler! I think the budget will really hammer small scale landlords. Plus it’s an asset which stops my hubbby being eligible for Aged Pension - so could upgrade our current humble abode to something nice! 1 Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted October 19, 2021 Share Posted October 19, 2021 Remember also the requirement to submit a special tax return with HMRC within 30 days of selling the property - and to pay any capital gains tax owing in the same timeline. Best regards. Quote Link to comment Share on other sites More sharing options...
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