easygroove

A few questions to those with experience in selling their UK property and then buying in Oz

We have let our house to tenants for a year (contract will end April 07) but are thinking of selling to buy a property in Sydney. Firstly, what is the required notice period for tenants?

Also, once the sale is completed in the UK is transferring funds subject to tax tec.

It's early days but we have our PR status and are now keen to get in to the market. Any advice would be great

ta

Centurion

You should serve a section 8 notice upon the tenants which gives them 2 months notice to quit.

You do not pay CGT on sale of your primary home, however since this has been let out you might end up paying a small amount of CGT which would depend on the periods of occupation by you etc. You should probably seek legal advice on that, but ultimately self assessment is exactly that I guess

Ozzidoc

Check the inland revenue website. If the property was your family home before you moved for at least a little while , u wont end up having to pay capital gains.....renting out such a property give you all sorts of "reliefs"....such as something called "rent relief" where the govt ignores a proportion of the gain.

With deductions such as costs (survey legal etc) of PURCHASE of the UK property, as well as costs of sale, rent relief, and CGT thresholds I think you'll find that you'll do fine....based on the limited info u have givin.

suzimc

You would need to check your contract too, most of them have the standard 2 months in them but I came across a couple of agencies whose standard contract differed from that when I was researching into renting out our property.

With regards to transfering the money, it's best to find out directly from the ATO and get a response in writing, I have heard different stories depending on who is telling you and indeed at times on which body they have asked the question.