capital gains tax & house in Uk
#1
capital gains tax & house in Uk
just been watching govt financial statement and it says that capital gains tax is now 18% with nolead in period. Our house is up for sale and we are hoping to move to oz soon but house wont be sold (no buyer yet)does that then mean we have to pay capital gains tax on our money from house when it eventually sells!!!!!!!!!!!!!!!!! or am I just panicking
#2
BE Enthusiast
Joined: Mar 2007
Location: Brisbane
Posts: 835
Re: capital gains tax & house in Uk
Yes your panicking, got nothing to do with houses.
http://news.bbc.co.uk/1/hi/business/7035734.stm
http://news.bbc.co.uk/1/hi/business/7035734.stm
#3
Re: capital gains tax & house in Uk
I think if the house you sell has been your main house there is no CGT to pay. I'm not sure how many years after you move out, you have to sell before you would be liable though??
#4
Re: capital gains tax & house in Uk
You do not pay capital gains tax on your main place of residence... in the UK or in Australia.
Mark.
Mark.
#5
Re: capital gains tax & house in Uk
thanks for that folks. thought I was just panicking
If the house has been our main residence over here is there a time scale before we incur any capital gains as it could take some time to sell
If the house has been our main residence over here is there a time scale before we incur any capital gains as it could take some time to sell
#7
BE Forum Addict
Joined: Aug 2005
Posts: 2,322
Re: capital gains tax & house in Uk
Yes, you get two years after you have moved out before you become liable for CGT on your main residence - this new flat rate of 18% DOES now apply though (been checking this out) as this is the rate for ALL CGT gains - not just businesses
#8
Re: capital gains tax & house in Uk
Jo
#9
Re: capital gains tax & house in Uk
see link and got to 'when you can make this choice' and look at the sentance before the example and the example.
http://www.ato.gov.au/individuals/co...tent/36887.htm
#10
BE Forum Addict
Joined: Aug 2005
Posts: 2,322
Re: capital gains tax & house in Uk
Just checked and its 6 years if you rent it out and forever if you dont get an income from it.
see link and got to 'when you can make this choice' and look at the sentance before the example and the example.
http://www.ato.gov.au/individuals/co...tent/36887.htm
see link and got to 'when you can make this choice' and look at the sentance before the example and the example.
http://www.ato.gov.au/individuals/co...tent/36887.htm
I don't know what the tax implications are in oz?
#11
Re: capital gains tax & house in Uk
Sorry, to make this clear i was only talking from the Uk tax liability side of things - if you moved out of your house in the UK you would be liable for CGT after two years as it is then no longer classed as your main residence.
I don't know what the tax implications are in oz?
I don't know what the tax implications are in oz?
#12
Re: capital gains tax & house in Uk
Sorry, to make this clear i was only talking from the Uk tax liability side of things - if you moved out of your house in the UK you would be liable for CGT after two years as it is then no longer classed as your main residence.
I don't know what the tax implications are in oz?
I don't know what the tax implications are in oz?
#13
Re: capital gains tax & house in Uk
thanks again for the replies sorry if I have confused anyone.
Our house is up for sale and has been since May, no buyers yet. When our sponsored visa comes through, any day now, we hope to move quite quickly ie withn 4 weeks or so. The house will stay empty until sold we cant afford to buy a house in oz until this is sold so we will be renting.
Our house is up for sale and has been since May, no buyers yet. When our sponsored visa comes through, any day now, we hope to move quite quickly ie withn 4 weeks or so. The house will stay empty until sold we cant afford to buy a house in oz until this is sold so we will be renting.
#14
Re: capital gains tax & house in Uk
Also it would be important to check if U.K. based assets come within the scope of U.K. capital gains tax regardless of owner's residence.
All that said, double tax relief should normally be available.
#15
Re: capital gains tax & house in Uk
Sorry guys ...must be a bit thick or too tired as my 3month son kept me up all night but we are wanting to rent our place out over here in the UK and then rent in Oz for a year or two - we would then sell our UK house before buying in Aus -we need to leave it at least a couple of years until redemption fee reduces.
We bought a property and spent a lot of time and money doing it up - and the rent should just about cover the mortgage - but if we lost 18% on it we would be hammered!!!!
as soon as we leave the UK are we liable for CG? Is it after two years?
thanks
We bought a property and spent a lot of time and money doing it up - and the rent should just about cover the mortgage - but if we lost 18% on it we would be hammered!!!!
as soon as we leave the UK are we liable for CG? Is it after two years?
thanks