sydneybound

Hi All,

Sorry for the length of this email, I hope someone can help me !

I have a house and 2 flats, the flats I have had for 18months (flat a) and 10months (flat b).

I am moving to Australia perminantly in april.

My house (my current Principal Private Residence) is sold and I'll be moving out in a few weeks into a friends house.

I plan to sell one of the flats as well, this way I have one uk flat paid off completely whilst I am in Oz.

QUESTION 1
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Which Flat should I sell ? Flat a has gone up in value by 10k more than Flat b, but Flat a currently is the only flat with tennents in it.

QUESTION 2
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Once the house is sold, can I state either Flat A of Flat B as my Principal Private Residence even though I plan to live elsewhere ? or do you actually have to LIVE in the house nominated as your PPR ? Can you nominate a flat that has tennants in it as your PPR ?

QUESTION 3
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If I wanted to liquidize my assets, what would be the best way of doing this to minimise CGT paid ?

QUESTION 4
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If I manage to sell one of the flats as well, and go abroad and leave my remaining flat in the uk with tennents in it, what steps should I put in place to minimise my CGT liability ? How about if I go abroad WITHOUT having any tennants in it (and live in it for a period beforehand) ?

QUESTION 5
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I've heard about a rule whereby you can 'backdate' the nomination of your PPR for up to 2 years, can I use this rule to sell my house, then nominate the flat with the highest CGT Gain (flat a) as my PPR, then sell this flat as well with no CGT to pay ?

Thanks a lot for any help !!

Enzo&Chloe

Sydney

I really think you should talk to a financial advisor. Life is complex enough with one tax office.

Q1) it's you choice. but consider

i)Does CGT here come into play on both flats
ii) What notice do you need to give your tenants
iii) £10K profit , is this after expense of buying and selling council tax (If net then you will pay CGT on excess of £7,900 provided you haven''t already used some of your CGT allowance

Q2)

or do you actually have to LIVE in the house nominated as your PPR ? ----YES
Can you nominate a flat that has tennants in it as your PPR ?---Only if you are living there too

Q3)- Far to complex- talk to an advisor.

Q4) - Far to complex- talk to an advisor.

Which CGT English or Australian.

Q5) No idea - talk to an advisor

Sorry if that is not much help, but a message bord is not the ideal place for fairly complex tax issues.

My one bit of advice is talk to an advisor, he will cost you money, but will save you from a potentially expensive tax bill.

sjn2003

Sydneybound

I have to agree with Enzo&Chloe.

I am an accountant with a fair bit of tax knowledge on both Oz and UK tax but I wouldn't try and answer questions like that on a discussion board. There are a hundred and one other questions to ask and you need to seek proper advice.

There is a guy who posts on here called Alan Collett who knows his stuff but I am sure you will have to pay for such advice !!!