CGT on UK home

[Gharry]

Hi everyone,

I’m wondering if anyone is able to assist me with a question regarding capital gains tax liabilities in UK and Australia. We have been planning our move back to Sydney at start of Sept 2023 for some time now - all was going well with house sale & pet transfer all aligning, however after a couple of months our buyer pulled out of our house sale. We have thankfully found another buyer for our house however I ( with my children) will now need to move to Sydney before the house sale has gone through. My husband will wait in the uk until contracts have been exchanged. I’m just worried about the cgt on our house sale in the UK. I am an Australian citizen with an Australian passport and my husband has a permanent resident visa. I’m continuing my UK job role (from Australia) until the end of the year but I believe I will be considered an Australian tax resident as soon as I arrive in Australia?

my question is, will I/we be liable for cgt in either Australia or the UK on the sale of our UK home? We have lived in it continuously since 2015 when we bought it, and in Australia will be staying with family until we secure a rental. 

Any advice or similar experiences would be greatly appreciated. I do plan on getting advice from a tax expert but just hoping someone will be able to put my mind at rest for now.

Many thanks!

Edited August 7, 2023 by Gharry

[Steve Elliott]

In the first instance, I would suggest having a quick at the ATO website which may provide some comfort, but you really do need to obtain qualified taxation advice. I would be very wary of any advice provided in a public forum as while well intended, the advice could be incorrect. More importantly a tax adviser may be able to suggest an appropriate strategy to optimise the outcome. 

 

[Parley]

If it is your home, continuously lived in and not rented out or an investment property then i don't think you have anything to worry about.

There is not usually any CGT on your family home you live in. (again assuming you have never rented it out).

Based on your post, there is no CGT and no need to declare anything on your tax return.

If you wish you can employ a tax professional to tell you the same but it is pretty common knowledge. I personally don't think you need to pay someone for this advice.
 

Edited August 8, 2023 by Parley

[Blue Manna]

14 hours ago, Parley said:

If it is your home, continuously lived in and not rented out or an investment property then i don't think you have anything to worry about.

There is not usually any CGT on your family home you live in. (again assuming you have never rented it out).

Based on your post, there is no CGT and no need to declare anything on your tax return.

If you wish you can employ a tax professional to tell you the same but it is pretty common knowledge. I personally don't think you need to pay someone for this advice.
 

That sounds like good advice to me.

I'd add that if they kept it for any length of time then they may face some CGT issues. But with mortgage rates as they are in the UK, and only going higher with the inflation that the evil EU have cast upon us, I can't see UK house prices going up any time soon. So you will have a bit of breathing space.

[Alan Collett]

Sale of UK property as a non resident means you most probably have an obligation to file a special CGT return with HMRC.

Also, watch the tax position in respect of your continued working for a UK employer (presumably with salary still taxed under PAYE) when you are a tax resident of Australia.

The UK-Aus tax treaty refers, at Article 14.

If you need any help see my email address below.

Best regards.