How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

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 and other Tax Specialists are ready to help you

Related Tax Questions