Capital Gains Tax?
May 6th 2005, 12:59 pm
#1
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Thread Starter
Joined: Apr 2005
Location: Notts.
Posts: 6
Capital Gains Tax?
Can anyone tell me the capital gains tax implications if we sell up in the UK before we buy in OZ.
May 6th 2005, 1:02 pm
#2
A former regular of BE
Joined: Oct 2004
Location: Carramar, Perth
Posts: 6,241
Re: Capital Gains Tax?
Originally Posted by Sproutyboy
Can anyone tell me the capital gains tax implications if we sell up in the UK before we buy in OZ.
May 6th 2005, 1:54 pm
#3
NorthLakes, Brissy
Joined: Sep 2004
Location: Bridgehaven release - North Lakes!
Posts: 2,423
Re: Capital Gains Tax?
Originally Posted by worzel
None. You can sell your own house without any CGT implications. What you then do with that money is up to you (bank it / buy an Aussie property etc). If you don't transfer the funds within 6 months of going for good you may get taxed on exchange gains but that is a whole different (more complex) question.
You sell your house for 250k - downsize and buy one for 100k, i always thought that you would get stung for CGT for the outstanding 150k
May 6th 2005, 2:04 pm
#4
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Capital Gains Tax?
Originally Posted by wargod
Whilst i'm sure you're right, how does that differ from ..... for example....
You sell your house for 250k - downsize and buy one for 100k, i always thought that you would get stung for CGT for the outstanding 150k
You sell your house for 250k - downsize and buy one for 100k, i always thought that you would get stung for CGT for the outstanding 150k
Another scenario, buy a house, live in it for a while then rent it out. If you sell it within 3 years, then no CGT, even if you have another property.
May 6th 2005, 2:14 pm
#5
Joined: Apr 2003
Location: Northamptonshire
Posts: 204
Re: Capital Gains Tax?
Originally Posted by wargod
Whilst i'm sure you're right, how does that differ from ..... for example....
You sell your house for 250k - downsize and buy one for 100k, i always thought that you would get stung for CGT for the outstanding 150k
You sell your house for 250k - downsize and buy one for 100k, i always thought that you would get stung for CGT for the outstanding 150k
If you have more than one home then you will be taxed on the one that you deem not to be your principle primary residence.
Chris
May 6th 2005, 2:50 pm
#6
NorthLakes, Brissy
Joined: Sep 2004
Location: Bridgehaven release - North Lakes!
Posts: 2,423
Re: Capital Gains Tax?
Originally Posted by chris n
If it is your 'Principle Primary Residence' then the gain is tax exempt (watch this space though for Gordon Brown!!).
If you have more than one home then you will be taxed on the one that you deem not to be your principle primary residence.
Chris
If you have more than one home then you will be taxed on the one that you deem not to be your principle primary residence.
Chris
Cheers all !!
May 6th 2005, 10:55 pm
#7
Retired
Joined: Apr 2004
Posts: 34,649
Re: Capital Gains Tax?
Originally Posted by worzel
None. You can sell your own house without any CGT implications. What you then do with that money is up to you (bank it / buy an Aussie property etc). If you don't transfer the funds within 6 months of going for good you may get taxed on exchange gains but that is a whole different (more complex) question.
Jeremy
May 7th 2005, 12:59 am
#8
Guest
Posts: n/a
Re: Capital Gains Tax?
Originally Posted by Amazulu
Another scenario, buy a house, live in it for a while then rent it out. If you sell it within 3 years, then no CGT, even if you have another property.
http://www.ato.gov.au/individuals/co...1/002&st=&cy=1
May 7th 2005, 12:40 pm
#9
Just Joined
Thread Starter
Joined: Apr 2005
Location: Notts.
Posts: 6
Re: Capital Gains Tax?
Thanks to all for the replies. Looks like we'll be OK as it is our primary residence.
Good bye and good luck!!!
Good bye and good luck!!!
May 7th 2005, 1:46 pm
#10
Joined: Feb 2004
Posts: 1,277
Re: Capital Gains Tax?
Hello,
Just to clear some things up.
The 3 year rule is a UK rule and applies only in the UK.
There is no 6 month grace period for forex gains. You can be charged forex gains (or claim losses) on any change in the value of your money from the time you sell the house to the time the money is changed into $s
If the house in the UK was your primary residence and you DO NOT buy a house in Oz then you have 6 years before you have any CGT implication. It is worth getting a tax ruling on this from the ATO.
Regards
Alistair
Just to clear some things up.
The 3 year rule is a UK rule and applies only in the UK.
There is no 6 month grace period for forex gains. You can be charged forex gains (or claim losses) on any change in the value of your money from the time you sell the house to the time the money is changed into $s
If the house in the UK was your primary residence and you DO NOT buy a house in Oz then you have 6 years before you have any CGT implication. It is worth getting a tax ruling on this from the ATO.
Regards
Alistair
