Capital Gains dilemma - for Alan Collett or experts
Jun 1st 2005, 3:38 pm
#16
Banned
Joined: Aug 2002
Posts: 7,613
Re: Capital Gains dilemma - for Alan Collett or experts
Originally Posted by jumbo
I think this is for Alan or other experts.
I become Australian tax resident in October and sell UK investments bought some years ago in January. Alan Collett says I am liable for UK capital gains on the proceeds unless I sell in the next UK tax year after leaving the UK and don’t return to the UK for 5 years. The investments are revalued for Australian tax purposes on date of residency and an Australian capital gain event and liability occurs on the sale.
My dilemma is to know what capital gains tax(es) to pay - to the UK, Australia or both?
Perhaps best illustrated by an example:
Buy UK funds at £50k 5 years ago
In October become Oz resident and value is £100k
Sell in January when value is £102k
1. UK liability = 102-50-UK capital gains allowance less tapers.
2. Australian liability = 102-100 less 50% as held over 1 year.
Do I need to pay both 1 and 2? Or am I missing something in my interpretation? All help appreciated!
I become Australian tax resident in October and sell UK investments bought some years ago in January. Alan Collett says I am liable for UK capital gains on the proceeds unless I sell in the next UK tax year after leaving the UK and don’t return to the UK for 5 years. The investments are revalued for Australian tax purposes on date of residency and an Australian capital gain event and liability occurs on the sale.
My dilemma is to know what capital gains tax(es) to pay - to the UK, Australia or both?
Perhaps best illustrated by an example:
Buy UK funds at £50k 5 years ago
In October become Oz resident and value is £100k
Sell in January when value is £102k
1. UK liability = 102-50-UK capital gains allowance less tapers.
2. Australian liability = 102-100 less 50% as held over 1 year.
Do I need to pay both 1 and 2? Or am I missing something in my interpretation? All help appreciated!
You are NOT liable for UK CGT if assets sold once you are non UK resident for tax purposes and stay away 5 complete UK tax years.
Jun 1st 2005, 8:08 pm
#17
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Capital Gains dilemma - for Alan Collett or experts
Originally Posted by Jonahs_mummy
Alan will prob know the answer but what he is getting at I think is that he runs Collett & Co, financial advisors for Australia too.........
But his services are obviously needed.
This is a serious matter (as is any financial transaction). Alan makes his living by giving advice to people who need it.
I make my living (in a specialised field) by giving advice and get well paid for it.
Why would any professional choose to give advice for free??
Would anyone?
G
Jun 3rd 2005, 6:26 am
#18
Banned
Joined: Mar 2004
Posts: 55
Re: Capital Gains dilemma - for Alan Collett or experts
Originally Posted by jumbo
The example was large (I should be so lucky) only to make an easy illustration. But I thought you would have known the answer.
