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Peter, Chartered Tax Advisor
Category: Tax
Satisfied Customers: 151
Experience:  Director at PDS Tax Limited
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My wife and I currently live in Australia and are planning

Customer Question

my wife and I currently live in Australia and are planning to return to the uk next year. we will have been in Australia for 3 years.
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: my wife has been gifted a property by her Australian parents. She is both an Australian and UK citizen. what tax implications are there with us selling the property and bringing the funds back to the UK.
Submitted: 2 months ago.
Category: Tax
Expert:  Peter replied 2 months ago.

Hi, my name is ***** ***** I am a Chartered Tax Advisor. I am reviewing your query and will reply shortly.

Customer: replied 2 months ago.
Thank you.
Expert:  Peter replied 2 months ago.

I have a couple of queries before commenting on the tax:

  • Has the property increased or decreased in value since it was gifted to your wife (or stayed about the same)?
  • Do you know how much tax your wife will pay in Australia on the sale of the property?
  • Was your wife tax resident in the UK before going to Australia? and for how many years?
  • Do you intend to sell before or after you come back to the UK?

Thanks, Peter

Customer: replied 2 months ago.
The property is the same value
Customer: replied 2 months ago.
No tax will be paid on the sale of the house.
My wife was in the UK for 6 years before we move to Australis
We intend to sell before we return.
Also, we jointly own a house in the UK which we have a mortgage on.
Expert:  Peter replied 2 months ago.

Provided the house is sold before the move back to the UK the transaction should not be subject to UK capital gains tax as your wife will most probably be non-resident at that time and selling non-UK property. The temporary non-residence anti avoidance rules should not apply as your wife acquired the property whilst non-UK resident.

If the transaction takes place when she is UK tax resident, it will be subject to capital gains tax. However, only to the extent that the property has increased in value since it was gifted to her from her mother. If the value has remained approximately the same then no gain will arise that can be subject to capital gains tax however the disposal would still need to be included on her UK tax return.

If you have any follow up questions, I am happy to help. Otherwise please consider a 5 star rating for my answer.

Kind regards, Peter

Expert:  Peter replied 2 months ago.

I hope my answer was helpful. If you have any further queries please let me know. If you have no further questions please be so kind as to rate my answer.

I look forward to hearing from you.

Kind regards, Peter