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Do we get taxed on Capital Sum brought into Aus?

Do we get taxed on Capital Sum brought into Aus?

Old Dec 28th 2007, 8:17 am
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Default Do we get taxed on Capital Sum brought into Aus?

I have applied for our 175 visa and I am in the process of selling the family house and buying a flat as a UK investment. The surplus will be taken to Aus, however I am concerned we will be taxed on all or part of this sum by the Australian tax dept.

Any pointers would be appreciated.
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Old Dec 28th 2007, 8:24 am
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Default Re: Do we get taxed on Capital Sum brought into Aus?

Originally Posted by incircles View Post
I have applied for our 175 visa and I am in the process of selling the family house and buying a flat as a UK investment. The surplus will be taken to Aus, however I am concerned we will be taxed on all or part of this sum by the Australian tax dept.

Any pointers would be appreciated.

No, your main house sale money will not be taxed by the Australian tax man - any interest you earn after you become resident will if you earn over your tax free threshold
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Old Dec 28th 2007, 8:28 am
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Default Re: Do we get taxed on Capital Sum brought into Aus?

Originally Posted by Wendy View Post
No, your main house sale money will not be taxed by the Australian tax man - any interest you earn after you become resident will if you earn over your tax free threshold
Many thanks.

So, if i decide to keep the money in an Aus account i will get taxed on the interest earnt, or if i buy a house then i will not get taxed ( i assume)

What happens in the reverse situation - do i get taxed by UK Gov once i sell my Aus house and bring the proceeds back?
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Old Dec 28th 2007, 8:41 am
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Default Re: Do we get taxed on Capital Sum brought into Aus?

Originally Posted by incircles View Post
Many thanks.

So, if i decide to keep the money in an Aus account i will get taxed on the interest earnt, or if i buy a house then i will not get taxed ( i assume)

What happens in the reverse situation - do i get taxed by UK Gov once i sell my Aus house and bring the proceeds back?

If you bought a house in Australia, then no you won't be taxed at all. I can't help with the reverse situation as I've been out of the UK for well over a year and it may have all changed
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Old Dec 28th 2007, 7:31 pm
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Default Re: Do we get taxed on Capital Sum brought into Aus?

Originally Posted by incircles View Post
Many thanks.

So, if i decide to keep the money in an Aus account i will get taxed on the interest earnt, or if i buy a house then i will not get taxed ( i assume)

What happens in the reverse situation - do i get taxed by UK Gov once i sell my Aus house and bring the proceeds back?
The ATO will take a wack at the proceeds for Capital gains tax
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Old Dec 28th 2007, 7:37 pm
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Default Re: Do we get taxed on Capital Sum brought into Aus?

Originally Posted by ex_exile View Post
The ATO will take a wack at the proceeds for Capital gains tax
If you sell a home that you buy in Australia you mean and say return to the UK ?

Not the case. There is no capital gains tax liability on the sale of your main residence providing you meet the criteria for it being your residence for tax purposes in both the UK and Australia.
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Old Dec 28th 2007, 7:39 pm
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Default Re: Do we get taxed on Capital Sum brought into Aus?

Originally Posted by incircles View Post
I have applied for our 175 visa and I am in the process of selling the family house and buying a flat as a UK investment. The surplus will be taken to Aus, however I am concerned we will be taxed on all or part of this sum by the Australian tax dept.

Any pointers would be appreciated.
Not sure on a 175 but "generally" once you become resident in Australia you are deemed "tax resident" and subject to income tax on your world wide income. This world wide income also includes growth in assets - not too sure about rental properties but definitely pension (called superfunds here) stock holdings.

Sale of rental property is subject to capital gains tax - subject to certain exclusions.

There are also certain time limits for bringing across capital assets ie sale of house proceeds, pensions.

With "generally" there are exclusions ie if you come on a temporary visa which only allows the ATO too tax your Australian derived income.
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Old May 18th 2008, 10:35 pm
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Default Re: Do we get taxed on Capital Sum brought into Aus?

Does anyone know if this means that is we rent our house in the UK for say, 2 years and then decide to sell that the money we make on the sale (over £100K) we be subject to Capital Gains Tax in Australia. I don't know what that is but I am sure it is a lot. If this is the case then wouldn't it be better to sell up before we leave?

Thanks

Karen
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Old May 19th 2008, 1:58 am
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Default Re: Do we get taxed on Capital Sum brought into Aus?

Originally Posted by Geelong Gent View Post
This world wide income also includes growth in assets -

Normally only when the relevant asset is sold (capital gains tax).
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Old May 19th 2008, 6:30 pm
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Default Re: Do we get taxed on Capital Sum brought into Aus?

Originally Posted by kazza1 View Post
Does anyone know if this means that is we rent our house in the UK for say, 2 years and then decide to sell that the money we make on the sale (over £100K) we be subject to Capital Gains Tax in Australia. I don't know what that is but I am sure it is a lot. If this is the case then wouldn't it be better to sell up before we leave?

Thanks

Karen
Capital Gains Tax in the UK is 18% for the 2008/2009 tax year. So if bought your house for £100k and sold it for £150K you would pay 18% on the £50k you earned over an above what you paid for it. I think you would pay UK CGT as you are selling the house in the UK and part of the solicitors job I think is to register CGT.

Once the house/flat is no longer your family home, you will then have to pay CGT.

Depends whether you can throw away £9,000. If you end up back in the UK then you will probably be better off than if you didn't own a property already. But if you are thinking short term, would you make enough profit in rent etc to pay for the £9k. That is assuming of course the property market gets it act together.....
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Old May 19th 2008, 7:06 pm
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Default Re: Do we get taxed on Capital Sum brought into Aus?

You will also be taxed in Australia on the rental income from the UK house/flat.

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