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bigduckontax, Accountant
Category: Tax
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We have a house which we have rented out for 10 years. The

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We have a house which we have rented out for 10 years. The house was in trust for my wife before we rented it out and the trust was dissolved at that point. We lived together in the house for 14 years before the trust was disolved and the rental starting. What would be our tax liability if we were to sell the house? The house is in joint names and we have a 220,000 mortgage.We have been living in Australia since the rental started in September 2008
Customer: replied 28 days ago.
The house was valued at 450,000 in 2008. And now is worth around 750,000

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

When you moved to Oz did the pair of you send Form P85s to your tax office?

Customer: replied 28 days ago.
I am not sure what Form P85 is. We submitted tax returns to HMRC for the first few years and were then exempted because we did not earn enough to pay tax so only have to do a return if our circumstances change

Then you should do so immediately. Fortunately, there is no time limit as to the submission of a P85, it is available on the web and can be filed online. Onn receipt HMRC will classify you as non-resident.

As you have been out of the UK for over 5 complete tax years you will only be liable to UK Capital Gains Tax (CGT) on the gain from an April 2015 valuation. This will be levied at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of disposal. You are liable for half the gain each. You will also be liable to Oz tax on the gain, but under their system, it is counted as income and charged to Income Tax.

I do hope that you have found my reply of assistance.

Customer: replied 28 days ago.
Thank you very much for your reply it was very helpful I will find and submit the P85 form

You both of you need to do that dated for your original emigration date.

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