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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Would a British-born person whos been resident in Australia

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Would a British-born person who's been resident in Australia for over 20 years be liable for CGT under UK rules or Australian rules on the sale of a gifted UK property? And what are the current levels of CGT in Australia?
Thanks for your quest6ion
The UK tax forum can deal with the UK tax position, but not the Australian one (so it could be prudent to post one on the Australian forum too)
If you wish to proceed then please advise
1) when was the property gifted to you
2) What is the increase in value since the property was gifted
3) Has the property declared rental income in the UK, and has this been declared to HMRC
4) Do you have any immediate plans to return to the UK (i.e in the next 2 years)
5) Are your visits back to the UK less than 90 days each tax year
Customer: replied 3 years ago.

Hi Sam

1. gifted 1996

2. approx £45k

3. no rental income

4. no return to the UK

5. UK visits less than 90 days and not annual

From what you say, is it likely that tax would be paid under both UK and Australian rules?


Hi Martha
Thanks for your responses
There will be NO UK capital gains tax to consider as you will have been treated as NOT resident in the UK at the time of sale, and furthermore, a sale, which will have taken place, during a period of time spanning at least 5 years, that saw you remain as NOT resident.
(Had you fallen as UK resident then you would have been subject to UK capital gains BUT any UK capital gain suffered would have been available for you to offset against any Australian tax position, under the double taxation treaty we have between our two countries - but you will NOT have a UK tax position to worry about, due to non residency)
You will need to establish the Australian tax position, especially if you plan to remit the money to Australia.
I am sure you can appreciate we are not Australian tax experts on the UK tax forum. But its very likely that as an Australian resident that you will need to declare this gain and be subject to capital gains tax on it, but as advised, there is an Australian tax forum within Just Answer, and it would be worthwhile posting a question there too.
Let me know if you have any further questions on the UK tax position.
Customer: replied 3 years ago.

Does the no tax liability still apply if UK nationality has been retained?

Hi Martha
Thanks for your further question
Yes indeed it does, it not the nationality position that's considered but the physical residency -
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