Resident in Australia but still own a property in the UK?
#2
Re: Resident in Australia but still own a property in the UK?
The U.K. has up to now been an exception in exempting capital gains on locally situate property owned by non-residents.
Anyone subject to Australian capital gains tax (including citizens/PRs with tax residency) should normally be able to offset any U.K. tax against Australian tax - although it is possible that U.K. tax could exceed Australian.
An ongoing exposure to the U.K. tax system is part of the risk inherent in deciding to retain a property in the U.K.
Anyone subject to Australian capital gains tax (including citizens/PRs with tax residency) should normally be able to offset any U.K. tax against Australian tax - although it is possible that U.K. tax could exceed Australian.
An ongoing exposure to the U.K. tax system is part of the risk inherent in deciding to retain a property in the U.K.
#3
Re: Resident in Australia but still own a property in the UK?
It does mention 'second homes'.....as we only own one home, in the UK but are selling after January to then buy our first home in Australia, it should not affect us...but still good to be aware!
#4
Re: Resident in Australia but still own a property in the UK?
I wonder if we will see a flurry of ex-pat home sales before this legislation is enacted...
S
#5
Re: Resident in Australia but still own a property in the UK?
nah.....they may be some stirring but I can't see a huge difference
#6
Re: Resident in Australia but still own a property in the UK?
It might be worthwhile to compute what the hypothetical U.K. capital gains tax would be. A typical emigrant would likely be able to claim private residence relief for the time of residence + 3 years, and letting relief would cover much of the rest of the gain. Add in the capital gains exemption (which may still be available) and the personal allowance (which should be available, normally) and the actual U.K. tax payable may be minimal. Plus, whatever's left could then (normally) be credited against Australian tax.
#7
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Re: Resident in Australia but still own a property in the UK?
By second homes, they mean not your principal private residence. Presumably your UK (former) home is not one of your residences, so it could well apply to you. However, as JAJ says, there are likely to be a number of deductions from any gain so you'd need to do the sums to find out whether it is a problem for you. In any case, it's unlikely to be introduced until the next year starts on 6 April 2014. Although there have been mid-year changes in the past, it's very rare.
#9
Re: Resident in Australia but still own a property in the UK?
The U.K. has up to now been an exception in exempting capital gains on locally situate property owned by non-residents.
Anyone subject to Australian capital gains tax (including citizens/PRs with tax residency) should normally be able to offset any U.K. tax against Australian tax - although it is possible that U.K. tax could exceed Australian.
An ongoing exposure to the U.K. tax system is part of the risk inherent in deciding to retain a property in the U.K.
Anyone subject to Australian capital gains tax (including citizens/PRs with tax residency) should normally be able to offset any U.K. tax against Australian tax - although it is possible that U.K. tax could exceed Australian.
An ongoing exposure to the U.K. tax system is part of the risk inherent in deciding to retain a property in the U.K.
#10
Re: Resident in Australia but still own a property in the UK?
By second homes, they mean not your principal private residence. Presumably your UK (former) home is not one of your residences, so it could well apply to you. However, as JAJ says, there are likely to be a number of deductions from any gain so you'd need to do the sums to find out whether it is a problem for you. In any case, it's unlikely to be introduced until the next year starts on 6 April 2014. Although there have been mid-year changes in the past, it's very rare.
#11
Re: Resident in Australia but still own a property in the UK?
Louie, it was our Principal Private Residence until we went PR but it is still our only owned home, we rented here as 457 Temp residents until we got PR last September and now will sell the UK house then use that to put as deposit here in Oz for our first permanent owned home. I think that for tax purposes we will be OK but I am taking nothing for granted.
#12
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Posts: 2,362
Re: Resident in Australia but still own a property in the UK?
Not if it is rented out, it isn't. And possibly not even if it is not depending on the nature of his tenancy/tenancies in Australia. As paddyo has been in Australia more than 3 years, it's entirely possible that there would be a liability in the UK should they change the rules. He'd have to do the sums.
#13
Forum Regular
Joined: Dec 2011
Posts: 33
Re: Resident in Australia but still own a property in the UK?
Simple . Just dont tell them you are living abroad!
#15
Re: Resident in Australia but still own a property in the UK?
Not if it is rented out, it isn't. And possibly not even if it is not depending on the nature of his tenancy/tenancies in Australia. As paddyo has been in Australia more than 3 years, it's entirely possible that there would be a liability in the UK should they change the rules. He'd have to do the sums.