CGT in Oz?

[Garym85]

Hi All, 

Sold my UK property a couple of Months ago. Only had it 4 or 5 years but sold it for around £10k more than I bought it/its value at the time. 
 

I’ve done the HMRC CGT calculation and after everything comes out it shows I have NO CGT to pay in the UK.

if this is the case, would I potentially still have CGT to pay here? I presumed double taxation rules kick in from UK and as there’s not actually much gain I’m exempt there and hoped that’s the case here too…or is it more complex than that and I would still have tax to pay? 

[rammygirl]

No idea if you will have tax to pay but just because none in UK doesn’t mean none here. The double taxation would allow any tax paid in UK to offset tax due to ATO.  The ATO rules now apply.  Seek advice from an accountant to ensure you apply the correct deductions.

[InnerVoice]

@Garym85 regardless of whether there is any CGT to pay in the UK or not, you still need to report it to the HMRC. If you don't, you could be looking at several hundred pounds in fines depending on how long you go without declaring. Here's a link to some relevant information on the gov.uk website - if you haven't already found it.

https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property

You should be entitled to a 50% CGT discount (see link below), so for sake of argument you will need to pay tax on the dollar equivalent of £5k at whatever your top rate of tax is. There maybe deductions you can claim if it's been a rental property, so as rammygirl said, you should seek financial advice regarding your Australia tax return.

https://www.ato.gov.au/Individuals/Capital-gains-tax/Calculating-your-CGT/

[Steve Elliott]

Hi Gary

I would suggest talking to your accountant. I am asked similar questions all the time in my role as a financial advisor and migration agent and while I believe I have a very good grip on the issues and indeed the answer, I am simply not licensed to provide tax advice so I refer all such questions back to the accountant as it's not worth the grief, if I get it wrong. A bit like doing my own tooth fillings, but worse

The answer, however , really depends on your tax residency. That's you starting point! 

[Ken]

On 24/04/2023 at 20:59, Garym85 said:

Hi All, 

Sold my UK property a couple of Months ago. Only had it 4 or 5 years but sold it for around £10k more than I bought it/its value at the time. 
 

I’ve done the HMRC CGT calculation and after everything comes out it shows I have NO CGT to pay in the UK.

if this is the case, would I potentially still have CGT to pay here? I presumed double taxation rules kick in from UK and as there’s not actually much gain I’m exempt there and hoped that’s the case here too…or is it more complex than that and I would still have tax to pay? 

There's a completely different set of CGT rules in Australia, consequently just because you have no tax to pay in UK doesn't mean you have no tax to pay in Australia. It works the other way around too. Some people have to pay tax in the UK but none in Australia. The big issues are your tax residency (temporary residents don't pay tax on foreign assets); when you became tax resident in Australia (gains before you became resident aren't taxed) and whether or not you ever lived in the property (it might still count as your main residence and so exempt from CGT).