Transferring money from UK house sale
 

Sold our house in the UK June this year and want to transfer the money over to Aus. It is over $10,000 and wonder if we will be taxed on this in Australia?

Re: Transferring money from UK house sale
 

Why would it be taxed, just because you transfer? What kind of tax do you have in mind?

If you made a capital gain on the sale of the house, then you might be liable to Australian capital gains tax whether you transfer it or not. Depends on private residence exemption, also your visa status in Australia. There may also be a potential U.K. capital gains tax liability unless and until you have been non-resident about 5 years.

Re: Transferring money from UK house sale
 

Thank you JAJ for your reply. It wasn't so much tax because of transfer - bad choice of words there. I wasn't sure what kind of tax - just know there are all sorts of taxes that I am not aware of. We didn't make a capital gain in the UK and from the little bit I have read don't think we will be here. However we did not get an official valuation done on it when we left the UK four years ago, but I do know that four years ago one very similar (probably better) sold for 6k more than ours just did. Am I right in thinking this is how they work out a capital gain here.. by calculating any gain since PR was taken up?

Re: Transferring money from UK house sale
 

Yes you are BUT you work it out in A$ using the exchange rate when you became tax resident and then again the rate when you exchanged contracts (not completion date). So depending on how the $A moved in relation to the pound depends on your CGT liability.
If you claim your UK house as your PPOR )primary palce of residence) their will be no Oz tax liability.

Re: Transferring money from UK house sale
 

What if we made a 'loss' in the last four years? Can we take that off our tax liability for the tax return this year? (It was actually early July that it sold). The exchange rate was less than now (not in our favour) four years ago but I still reckon the value of the house four years ago was around 6k more than we just sold for.

Re: Transferring money from UK house sale
 

Just worked it out on exchange rate then/now and even though the house was sold at a loss it would appear we made a slight gain with the fluctuation in exchange rate. Amazing. They always get you some how don't they!!

Re: Transferring money from UK house sale
 

Others more knowledgeable than me can clarify, but I thought that if it was your only property then you can still make a profit and keep it, invest in your next house. I thought Capital gains only applied when you have more than one property.?

Re: Transferring money from UK house sale
 

Yes you are correct that is why I qualified my ans by stating if it's your PPOR their is no tax liability in Oz. You can claim it as your PPOR for up to 6 years after you've moved out (assuming you don't buy another house which you also want to claim as your PPOR).