British Expats

British Expats (https://britishexpats.com/forum/)
-   Australia (https://britishexpats.com/forum/australia-54/)
-   -   Renting UK property and moving to Australia (https://britishexpats.com/forum/australia-54/renting-uk-property-moving-australia-921513/)

SAMHINAL1 Jan 28th 2019 1:39 pm

Renting UK property and moving to Australia
 
Hello. We are planning to rent the UK house (mortgaged) for 12months and move to Australia (we have visa). We have lived in the UK house for last 5 years. When we sell the UK house, will we have to pay any capital gains tax? As it's our first property and we have lived in it, we just renting it out for 12months and then sell. Anyone with this personal experience? Thank you

louie Jan 28th 2019 10:00 pm

Re: Renting UK property and moving to Australia
 
In the UK, maybe. The current rules are explained here - https://www.gov.uk/tax-sell-home/let-out-part-of-home, but they are expected to change on 6 April 2020 to reduce the final period exemption from 18 to 9 months and to withdraw lettings relief. In other words, if you exchange contracts to sell before 6 April 2020, no UK CGT, but if you exchange after then, yes there will be potentially be some CGT chargable. That said, you will still have your CGT annual exemption(s), £12,000 pp from 6 April 2019. So unless you make a pretty significant gain, you are unlikely to have much, if any, UK CGT to pay.

In Australia, it depends on whether the A$ proceeds exceeds the A$ value of the house when you become an Aussie tax resident.

BTW, the mortgage is irrelevant.

Alan Collett Jan 29th 2019 4:23 am

Re: Renting UK property and moving to Australia
 
The mortgage isn't irrelevant - see the forex provisions in Australia.

Best regards.

louie Jan 29th 2019 6:30 am

Re: Renting UK property and moving to Australia
 
Thanks Alan. I should have said irrelevant to the UK calcs. But I didn't know they were relevant to the Aussie calcs, so I have learned something new.


All times are GMT. The time now is 10:12 pm.

Powered by vBulletin: ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.