mjj

I'm getting well p*ssed off with accountants here in Oz. Ask a dozen accountants a question about CGT on an overseas property and you get a dozen different answers.

Here is my situation. I am a PR visa holder and arrived in Australia to settle last year. We own a house in the U.K that we are currently renting out. We do not own a property in Australia and are currently renting here. We only own one property in the whole wide world.

Are we liable to Australian CGT if we sell our house in the U.K?

A lot of people on these forums have mentioned a 6 year rule. My current accountant has said that this rule doesn't apply to permanent residents. I have little faith in my accountant and think that it may be time to get rid of her.

Has anyone out there in a similar situation ever had a ruling from the ATO regarding CGT on U.K property sales? Please enlighten me!

Cheers
mjj

Geelong Gent

Try some research on ATO website www.ato.gov.au

The attached document may help - I am also reviewing it but do not have PR status and therefore are not subject to my other property in UK/Singapore/NZ

Centurion

Surely you would indeed be liable for Capital Gains, however only on the difference in price between the point of it being let a year ago and the point of sale now.

No legal experience in this, simply common sense to me.

Phone the ATO and ask them directly what they think. Its free and at least you'll hear it from the horses mouth.

JAJ

In principle yes, except there might be some additional relief if it used to be main residence.

You don't always get good advice from a "helpline".

Alan Collett

I got a Private Ruling from the ATO when we sold our former main residence in the UK which had been let when we moved to Australia. The sale was to buy our first home in Geelong, and at the time we were permanent residents of Australia.

Recognising that Private Rulings are specific to each taxpayer (see http://www.ato.gov.au/rba/ and http://www.ato.gov.au/rba/disclaimer.asp) the Ruling advised that the exemption to which you refer was available to us.

I will see if I can locate the Ruling in question on the ATO database later.

Best regards.

mjj

Alan - This is what I wanted to hear! It would be great if you were able to find the ruling on the ATO database. Many thanks for all of your replies. I just find it staggering that you can pay good money to accountants yet they are unable to provide accurate information.

I suppose my best bet is to get my own private ruling from the ATO.

Alan Collett

OK - I have it. Authorisation Number 41249:
http://www.ato.gov.au/rba/content.as...tent/41249.htm

As I mentioned in my last post, this Ruling is specific to me, but you might nevertheless choose to use it as a basis for the preparation of your Aussie Return ...

Please don't be too hard on your accountant - you are by no means the first ex-UK person in Australia I have heard about who has encountered an accountant who doesn't have a complete understanding of the issues affecting newly arrived migrants from the UK (or indeed elsewhere)! Watch this space, as I intend to start a network over the next few months of tax accountants who will receive technical input from me as to taxation issues that are specific to migrants.

Best regards.

mjj

Thanks a million Alan. Much appreciated.