Portarlington

Hi Guys,

I bought a property in Geelong (VIC) in Feb 2016 and lived in it until I moved back to the UK July 2018. Since July 2018 it’s been rented out and declared to the ATO. If I was to sell the property now would I have to pay CGT or can I claim it as my main residence ? I’m a Australian citizen. I’d appreciate any advise or experience anyone may have had regarding selling property.

I can always jump on a plane and move back if it’s going to save me $$$$$ 😀
Thanks

Beoz

It looks like you are moving back, unless you can prove one of the get out clauses.

https://www.ato.gov.au/Individuals/C...deceasedestate

Portarlington

Beoz, I think you are right! QLD here I come ✈️

christmasoompa

Before you move back and wait to become tax resident again before selling, you might want to take the test on this link to see if you renting it out will have an impact - https://www.ato.gov.au/individuals/c...idence-(home)/

If you only get partial relief, it may not be worth it.

Beoz

I just tried the tool, putting in ownership dates of about 5 years and answer yes to the question about living elsewhere for a period, and got this. Hardly complex, what a waste of effort by fhe ATO.

Unable to use this tool to determine the extent to which the capital gain or capital loss that you make on the disposal of the property is subject to capital gains tax.

This is because your circumstances are complicated by the status of other properties potentially restricting the availability of the main residence exemption for this interest.

BleughBleugh

it's even worse, Mortgage rate relief ends in April, meaning UK gov needs ALL income declared , and taxable. Currently going through the ringer with them RE allowable expenses, etc,
but, it's looking like we'll have to move back, or I lose 3/4 my take home pay in tax

Alan Collett

I think you'll find that in the UK there's a tax credit for mortgage interest paid x 20% - so no change to the tax position in the UK unless you are a 40% or 45% taxpayer.

Best regards.