Paying capital gains tax in Aus after selling UK property

[Rawkus]

Hi

We have a property in UK we are hoping to sell this year.it has been rented out up until now.

This is our only property. We live in a rental in Australia and do include the figures in our tax returns for UK and Aus.

I have been looking at the UK tax rules and we shouldn't owe any CGT there based on my expenses I will be claiming and the tax allowance we can both claim.

I'm not sure about here in Australia though, When I declare the sale in the tax return here . I cannot find what I can claim in expenses here, is it the same - kitchen, bathroom upgrades etc?

Also, we have lived in the property in the past. Can I claim any private residential relief for a period like you can in the UK?

 

Any help would be much appreciated. 

 

Thanks 

David

Edited August 28, 2022 by Rawkus

[Fisher1]

Not much help, but I can tell you that when we sold a rental property in the UK five years ago, as very new arrivals here, we didn’t have to pay Capital gains on the UK property (which we had never lived in) because contracts were exchanged after we left the country. We did have to pay C.G. here jn Australia but I can’t remember what percentage it was. 

[Gharry]

Hi Rawkus

I just come across your post, I was just searching for an answer to the same question and wondered how you got on with your sale? Our house sale looks like it may fall through just before we’re ready to leave so we are going to rent it out for a little while and sell at a later date but I was wondering about the capital gains tax we would need to pay. I am going to get some advice from a UK/Australian tax specialist but wondered if anyone else had a similar experience that they could share.

Many thanks

G

[Rawkus]

Hi Gharry

We sold the property and we did the Capital gains tax return for HMRC within the 60 day time frame. 

We will be including the Capital gains in our Aus returns when we get round to doing them.

If you sell it when resident in Australia you need to do returns for both UK and AUS. 

You should have it valued when you move to Aus because the Capital gain is calculated from the value of the property at the time you became resident in Aus and not the amount you paid for it.

Good luck with the sale. Ours fell through but sold second time around.

 

[Gharry]

That’s great, thank you!