chrisp6

The money that you would be taking with you (sale of house uk) do you pay tax on this money when you get to Australia?

YFitz

My understanding is that the money you initially take with you is not taxed.

If however you sell your house after (I think its 6mths +) you move any increase in the value between you leaving and selling is taxable. ie, leave uk and house is valued at £150k. Sell house 1 year later at £170k then you will pay tax on the £20k that it has risen in value (and I think it's something daft like 50%)
I am no expert on this so am sure others will correct me if I'm talking nonsense
Yv

ABCDiamond

Very close

But you also take into account any currency rate changes.
eg: if the property is worth £150k when you move over, and the FX rate is 2.5, then it is considered to be worth (2.5x £150k)= A$ 375k

Then when you do move the funds over, at your figure of £170k, but the FX rate may be 2.4, then the value will be (2.4x£170)=A$408k, so tax will be calculated on $408k-$375k= $33k. But of course if the FX rate goes the other way, your profit will increase, and therefore more tax will be due.

But also take account of all selling costs incurred etc, to get to the NET selling price.

Here is a link to the ATO International Tax essentials page, in case any of it is relevant to anyone.

The Capital Gains tax rate of 50% can effectively be reduced to 25% if an asset has been held for more than one year. I'm not sure how it applies to this though.

Kiwipaul

My belief is also if you do not buy a house in Oz you can keep claiming this property in UK as your principle place of residence for up to 5 years and thus avoiding any CGT in Oz (not sure about UK requirements) when you sell it.

You are only allowed one principle residence and you are allowed to keep a house in one part of Australia whilst living in a different part for 5 years even if that house is rented. So don't see why it shouldn't apply to a house abroard as well but I'm no tax expert.

renth

That's almost right. I always thought you had 6 months to sell the UK house or pay capital gains on any increase in value (not very likely these days!)

But if you keep the UK house, don't buy a house in Australia you get 6 years to sell it without CGT.

I was told this by the ATO.