Chrisolo

We’re returning to Australia after 14 years here and have a UK buy-to-let property we are looking to sell. Just trying to understand Capital Gains tax implications and whether getting it sold before we leave would be better than soon (within a year) after we have left – or it doesn’t matter?

Thanks

Kiwipaul

The difference is marginal with regards to Oz tax because you will value the property in Oz$ when you become tax resident in Oz again. If it takes you 12 months to sell the CGT will be the difference between the price when you became tax resident again in Oz and the price you got for the property in Oz$, less any costs you incurred in selling.
So unless the house prices rocket in this 12 months or the pound changes significantly against the Oz$ the selling costs will absorb any gain. This assumes you didn't own the property before you left Oz 14 years ago.

Cannot comment on any UK tax liability.

Alan Collett

From the UK tax perspective it is likely to be best to wait until you are non UK resident, as the UK CGT computation will then reference the value of the property on 6th April 2015, rather than original cost.

Best regards.