Savings and Australian taxes
#1
Savings and Australian taxes
Will we have to pay tax on the money we gain on the sale of our uk house. We will be using this to set us up over there, and need to know if it will be taxed on arrival, or as anual income, or anything else.
#2
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Your OK.
Australia is only intrested in Taxing you on anything you earn, or any capital gains you make once you become resident in the country, so you are ok.
Also capital gains on your home is tax free, so even if you cannot sell it untill after you arrive you are still OK. You are even allowed to have 2 homes for 12 months, your old home and your new one, so long as you don't earn income from your old home, whilst you try and sell it.
Any investments you own ( rental property, stocks, shares, etc)when you enter the country are valued at that point for capital gains purposes (you do the valueing) and you are only taxed on the capital gain when you dispose of the asset.
One tax tip if you stay here less than 5 years, any asset you own before you arrive, and if you don't sell it before you leave and you stay less than 5 years is exempt from capital gains tax.
Also 50% of any capital gain is tax free, the other 50% is added to you income for that year and taxed normally.
Also capital gains on your home is tax free, so even if you cannot sell it untill after you arrive you are still OK. You are even allowed to have 2 homes for 12 months, your old home and your new one, so long as you don't earn income from your old home, whilst you try and sell it.
Any investments you own ( rental property, stocks, shares, etc)when you enter the country are valued at that point for capital gains purposes (you do the valueing) and you are only taxed on the capital gain when you dispose of the asset.
One tax tip if you stay here less than 5 years, any asset you own before you arrive, and if you don't sell it before you leave and you stay less than 5 years is exempt from capital gains tax.
Also 50% of any capital gain is tax free, the other 50% is added to you income for that year and taxed normally.