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TonyTax
TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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We are now Australian citizens and have a property in the UK

Resolved Question:

We are now Australian citizens and have a property in the UK which has been let for the ten years we have been in Australia. What tax are we liable for if we sell the property?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Gains made by non-residents from the disposal of UK residential property became liable to CGT in the UK with effect from 6 April 2015 as you can read here. There are three ways of calculating the taxable gain which you can find here. You can use the one which is most advantageous to you. For many, that will mean choosing to take the 5 April 2015 value of the property as the "cost" for CGT purposes. Which method is best suited to you will be dependent on the facts and figures of your case including the period of ownership of the property, the period that you lived in it, how long it was let for, how much it cost and what it is sold for. CGT is charged at 18% and 28% in the UK (the Budget on 16 March reduced the CGT rates for assets other than residential property but the fine detail has yet to be published). The rate or combination of rates that you will pay will be dependent on the level of your income in the tax year that you sell the property. Take a look here for information on how to work out your CGT rate. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
Any CGT you have to pay in the UK will be deductible from any liability you have on the gain in Australia.
Customer: replied 1 year ago.
We are taxed in Australia as Australian citizens. Do I understand that the CGT will be deducted from that amount?
Customer: replied 1 year ago.
What tax are we liable for in Australia?
Expert:  TonyTax replied 1 year ago.
No, it won't. It's up to you to or your adviser/accountant to work it out and pay it to the tax office.
Expert:  TonyTax replied 1 year ago.
I'm not an expert on Australian tax. You can read about Australian CGT here. That will be the tax that you will be liable for, if any.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15838
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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