Dumbledore

Hi there

Can anyone tell me what the deal is if you sell your overseas home whilst being a tax resident in Australia for CGT ?
I think the answer is that the ATO will make you pay CGT on it ?
If so how do you calcaulte the CGT - is it the capital gain in the period from when you became an Australian tax resident until when you sell it ?

discobay

I'm sure this has been asked way too many times before but I am interested to hear the latest information on this too.

Alfresco

You have up to six years to decide which is your primary residence. So you can choose your overseas property as primary residence and not pay CGT.

http://www.ato.gov.au/individuals/co...=0&mfp=&st=&cy

http://www.ato.gov.au/individuals/co...tent/36887.htm

ajw

Have a sworn valuation done on your home when you leave, this will help determine CGT when u come to sell if y are not retaining it as PPR.

ajw

Sorry, I just reread your post and realised you were referring to a property outside of Australia..

Beoz

Does anyone know if you spend a few years in Oz, a few in the UK, a few in Oz and vice versa, and your residency status changes with each, does this reset the clock with respect to the ATO and it's rules on six years and so forth?

Kiwipaul

It would only get reset if you moved back into the property and made it your home I think for approx 6 months. This is assuming you don't own another property that you claim as your PPOR.

Damson

Does anyone know if there is an affect on CGT on your UK home when moving to Aus if you've run a small business (me and OH) from an outbuilding at your permanent residence there. It is also the registered address.

Kiwipaul

What you did with your PPOR before comming to OZ is irrevelent to Oz taxman. He only gets intrested in ALL your investments once you become tax resident in OZ. The CGT will only apply to the increase (or decrease) in value of the property since you became tax resident in OZ so get it valued before you leave.

spuddyo

When I came to Australia in the 90's , my UK house was rented out for 7 years before it was finally sold. The Australian TAX office had no idea that I owned a house in the UK and were totally unaware of the proceeds from it's sale.

Chortlepuss

Surely they would have noticed when you moved the money over?

Bermudashorts

That is what I was thinking. However this was possibly before robust money laundering controls were in place; now the ATO would be notified of any large transfers in from overseas.

Turban Explorer

What does the ATO consider 'large'? If a property becomes liable for CGT to the ATO when you gain PR what exchange rate does it use to assess its value. The exchange rate at the time of original purchase or when you become a fully fledged tax resident ? Its a head f@ck

Kiwipaul

According to my understanding it's the exchange rate on the day you arrive and become resident in Oz for tax purposes. The ATO web site has all the daily rates going back years that you should use.

Damson

That's a relief, thanks - something finally in our favour.

Just one other question, do you know what sort of proof of value is required before you leave, ie, estate agent valuations?