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who else can't sell house in Uk and has visa

who else can't sell house in Uk and has visa

Old Jan 21st 2010, 6:54 pm
  #16  
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Smile Re: who else can't sell house in Uk and has visa

Originally Posted by Alfresco
When are you planning to sell Vash, as you'll get taxed by the ATO when you bring the cash into Oz as apposed to taking in with you when you moved over?
We have no immediate plans to sell. Maybe in 5 years' time; maybe longer. I am aware that we'll be liable for CGT.
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Old Jan 21st 2010, 9:19 pm
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by Alfresco
I think you can ask the ATO for a ruling on how long they give you to bring your £££s into Oz (say 12 months). After that you will most certainly get taxed on money brought in at the difference between what the house was worth when you moved to Oz and the price you sold it for.

I'll try and find some old threads about this.

Found one:

http://britishexpats.com/forum/showt...mary+residence

If you buy a house in Oz then your UK house is no longer your primary (owned) residence and will be subject to tax on selling (after a period of time).
It seems that there's no hassle free, tax free/low tax solution. It's probably better to sell in the short to medium term
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Old Jan 21st 2010, 9:42 pm
  #18  
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Default Re: who else can't sell house in Uk and has visa

My house went up for sale in may 2007 and its still for sale.

Although if nowt happens in the next week its getting rented out. Enough is enough.

I'm now in brisbane on the dole, unable to find a job. Oh what a wonderful life eh

Jazzys
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Old Jan 22nd 2010, 8:15 am
  #19  
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by paulry
It seems that there's no hassle free, tax free/low tax solution. It's probably better to sell in the short to medium term

Yeah and the exchange rate is so depressingly low now. 30% gone like that - Woooosh!

So even selling now is not great.
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Old Jan 22nd 2010, 8:19 am
  #20  
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by jazzys
My house went up for sale in may 2007 and its still for sale.

Although if nowt happens in the next week its getting rented out. Enough is enough.

I'm now in brisbane on the dole, unable to find a job. Oh what a wonderful life eh

Jazzys

Well we're fixing up the house (and have been for ages) so if it doesn't sell for a good price, at least it will be sound enough to rent out and hopefully sell at some later stage.

Thing is though it would be nice to have the cash in Oz to use as deposit on a house there.
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Old Jan 22nd 2010, 8:25 am
  #21  
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by Alfresco
Yeah and the exchange rate is so depressingly low now. 30% gone like that - Woooosh!

So even selling now is not great.
I still havent figured out if you pay tax on exchange rate fluctuations.

e.g. if when you migrate you own a house worth £100,000 or AUD$175,000 then 6 months later the rate is 2/1, you sell for £100,000 which is then worth $200,000 are you liable for tax on the additional $25,000
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Old Jan 22nd 2010, 8:34 am
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by freebo
I still havent figured out if you pay tax on exchange rate fluctuations.

e.g. if when you migrate you own a house worth £100,000 or AUD$175,000 then 6 months later the rate is 2/1, you sell for £100,000 which is then worth $200,000 are you liable for tax on the additional $25,000

Yes you would be because it's a gain. That's why if you get a ruling from the ATO to bring you cash into Oz within a certain time frame (say within 12 months of moving) CGT won't apply and if the exchange rate improved, you'd score. If you sell after say 5 years and then bring the money to Oz, you'll pay CGT on the gain as well as any rise or fall in exchange rate. If you buy a house in Oz that is, because your primary owned residence is now in Oz.

So a lot of though and calculations need to be done.
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Old Jan 22nd 2010, 11:25 am
  #23  
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Smile Re: who else can't sell house in Uk and has visa

Originally Posted by Alfresco
Thing is though it would be nice to have the cash in Oz to use as deposit on a house there.
Yes, absolutely. We bought our Aussie house a couple of years before moving over and it would have been nice to reduce the mortgage further by selling the UK house.
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Old Jan 22nd 2010, 1:06 pm
  #24  
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by newlife_downunder
We are pretty much the same Hubby has been out of work 14 months; having said that he has been decorating to enable us to go on sale (we hadn't of touched the place since we had moved in some 15 years ago!!)

We went on sale in late November and accepted an offer just before Christmas. We now sit and wait

We too cannot do a thing as all the money is tied up in the property, we also need to pay off debts etc. and don't expect to go with shed loads of money, but enough to "hopefully" see us ok for 6 months.

We have had our Visa since Nov 2008.

Good luck, they say the housing market is picking up
Just like to say good luck with the house sale. What trade is your hubby in?
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Old Jan 22nd 2010, 1:08 pm
  #25  
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by Alfresco
When are you planning to sell Vash, as you'll get taxed by the ATO when you bring the cash into Oz as apposed to taking in with you when you moved over?
Hi sorry I am a little confused about the tax. So say you sell your house for a little bit more than you payed for it are you tax on that or all the house?


What about all the debt that has to be sorted out of the money from the house sale? I am a little confused of how it all works.
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Old Jan 22nd 2010, 1:17 pm
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by jazzys
My house went up for sale in may 2007 and its still for sale.

Although if nowt happens in the next week its getting rented out. Enough is enough.

I'm now in brisbane on the dole, unable to find a job. Oh what a wonderful life eh

Jazzys
Ow so sorry to hear this. How are you managing it must be tuff. Is they nothing you can do are retrain for? Can you not go on a course? How long you been in Oz?
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Old Jan 22nd 2010, 1:21 pm
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by Alfresco
Yes you would be because it's a gain. That's why if you get a ruling from the ATO to bring you cash into Oz within a certain time frame (say within 12 months of moving) CGT won't apply and if the exchange rate improved, you'd score. If you sell after say 5 years and then bring the money to Oz, you'll pay CGT on the gain as well as any rise or fall in exchange rate. If you buy a house in Oz that is, because your primary owned residence is now in Oz.

So a lot of though and calculations need to be done.
So if your lucky enough to sell your house before you go to Oz you will have to pay tax on it or am I not picking this up? But if you decide to leave most of your money from the sale of your house when debt has been payed etc do you pay tax on the money your bank transfers to Oz?
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Old Jan 22nd 2010, 1:44 pm
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by mobilephone
So if your lucky enough to sell your house before you go to Oz you will have to pay tax on it or am I not picking this up? But if you decide to leave most of your money from the sale of your house when debt has been payed etc do you pay tax on the money your bank transfers to Oz?
If you sell your UK house (even if you made £1Million profit) when you move to Oz and take the money with you (and possibly up to 12 months after you move), you are deemed to be taking the money with you into Oz, so there is no tax payable at all in UK or Oz. It's all yours.

If you rent out the house for say 3 years after you move to Oz and then sell it, you will be liable for CGT on the profit you made in the three years after you moved to Oz and possibly more if you bought a house in Oz, as your UK house will be deemed to be an investment property and not a primary owned residence any longer.

EDIT: http://www.ato.gov.au/individuals/co...tent/63517.htm

Last edited by Alfresco; Jan 22nd 2010 at 2:10 pm. Reason: add word & typo
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Old Jan 22nd 2010, 2:00 pm
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by Alfresco
If you sell your UK house (even if you made £1Million profit) when you move to Oz and take the money with you (and possibly up to 12 months after you move), you are deemed to be taking the money with you into Oz, so there is no tax payable at all in UK or Oz. It's all yours.

If you rent out the house for say 3 years after you move to Oz and then sell it, you will liable for CGT on the profit you made in the three years after you moved to Oz and possibly more if you bought a house in Oz, as your UK house will be deemed to be an investment property and not a primary owned residence any longer.

EDIT: http://www.ato.gov.au/individuals/co...tent/63517.htm
Thank you for your very quick reply. Its just I heard things about capital tax and was a little confused bet I am not the only one.
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Old Jan 22nd 2010, 2:09 pm
  #30  
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Default Re: who else can't sell house in Uk and has visa

Originally Posted by mobilephone
Thank you for your very quick reply. Its just I heard things about capital tax and was a little confused bet I am not the only one.
Yep it comes up time and time again and most people aren't aware of the implications of not selling their house when they move to Oz.

So we'll get a ruling from the ATO to say how long we have to take our house sale money to Oz before we are taxed on it and we'll abide by their ruling.
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