peelatata

We are to move out to Oz next year and rent out our Uk property. When the mortgage is up we want to sell and use the cash.
Is it true that we get stung Capital Gains 47% tax on the proceeds
Has anyone experienced this?

debsy

apparently so - we were going to do the same buch you will get clobbered for CG tax in Australia

claireg3

Doesn't it depend on how long you rent the property out for? I thought that if it was less than 12 months you didn't pay CGT.

Pollyana

While on the CG tax subject - if I am in Aus, but am the beneficiary of my parent's will (parent lives/dies in the UK and is British), my gain from the estate is paid into my BRITISH bank account, do I need to tell the Aus authorities, and do I have to pay CG tax? I appreciate the estate may be subject to british tax rules, but its the situation with me getting the money while living in Aus that I am interested in.

By the time it happens I will probably have both Aus & British citizenship, but I intend to maintain a UK bank account for various reasons.

etlniwd

I think that all you people that have issue like this that you do not understand should consult a professional tax advisor. Not knowing whether you are going to lose half the value of your house or your inheritance is far too important to be decided acording to the answers you will receive on this forum. You will get loads of advice here but most of it will be wrong.

Alan Collett

Although I stand accused of having a vested interest, can I urge those of you who have questions such as those noted above to take some professional advice. There are some fundamental mistakes in the earlier postings and I dare say potentially large amounts of tax.

For starters, Australian capital gains tax is payable from the date that you become a tax resident in Australia, but only on the increase in the value of a chargeable asset from the date that you become a tax resident.

Best regards.

The Tooth Fairy

Captial Gains Tax is a tax on GAINS on capital. If is not a CAPITAL TAX.

Pollyana

I knew I wouldn't get an answer I'd understand! I've never understood tax - the government take most of my wages and call it justifiable taxation, I daresay the Aussie government will do the same! Whatever the answer, and however much I will lose in the end won't affect my migrating, so I'll just declare it when it happens and let the two countries fight over it!

Kiwipaul

I've posted a couple of replies about this in laymans terms cos I'm a layman, not a tax expert.

Try this Link

This is only a simple explanation of CGT and their could be implications I don't know about (being a layman), so beware.

dotty

All I can say is be honest with Tax Depts in both Countries. Total nightmare now flowing for UK mates of ours, they hid all sorts of bits and pieces in the UK. Came over well impressed with the Aussie handouts, claimed the lot, then Aussie Tax office gets wind of the UK stash and now its Fraud and full repayments thank you.

I would also agree with etwind, professional advice on Tax Matters of such huge value seems essential to me.

peelatata

I certainly will seek out expert advice regarding this. I have spoken with an accountant and he pointed out that its no different to owning two properties in the UK. You will be liable to CGT if you sell one and cash in.
He suggested putting the property in trust for the kids or bite the bullet as it will still be a good investment.