fremantle

Hello everyone

I moved to australia in April 2009 to marry an Australian - I obtained citizenship in 2014. I retained my house in the UK which has since been lived in by my daughter who has continued to pay the mortgage and bills.

Despite my love of Australia, things aren't going too well on the personal front. My head is all over the place and not sure what I will do at the moment. However, I was wondering that if I was to return to the UK to start my life back up again on my own, where would I stand in relation to selling my home in the UK and buying somewhere else in the UK to start afresh? I am thinking specifically in terms of capital gains tax. Would I have to live back in my home for a certain amount of time to avoid this or would I still be liable however long I moved back in before I sold it.

Any advice would be appreciated.

Thanks very much

Pulaski

In the UK CGT is prorated according to the time that you either lived in it, or were deemed to have been living in it. Working overseas can be a reason for you to be deemed to have been living in it. You must have been living in it immediately before it is sold, I think.

Overall CGT is a bit of a minefield and you should consult an experienced tax accountant to get advice specific for your situation.

Novocastrian

I agree with Mr. Pulaski that expert advice is needed, but since (I presume) the house has remained in your name and you haven't been renting it, just letting your daughter live there while you've been away, I think that if you first re-establish the house are your primary residence (electoral roll etc., ) then CGT wouldn't apply when you sell.

spouse of scouse

Hi Fremantle, sorry to hear that things aren't working out too well for you. Life has a very irritating habit of chucking all sorts of difficult things at us doesn't it.

Not sure if you've seen this UK government calculator, it may help you to work out how much CGT you would pay on your house in different situations
https://www.gov.uk/tax-sell-property/work-out-your-gain

Another link from the same site that may be of particular interest to you states
If you’re a non-resident selling UK residential property you only pay tax on the gain you’ve made since 5 April.
https://www.gov.uk/guidance/capital-...-workout-gains

I do agree with previous posters that good professional advice is a must, your house is probably your biggest asset and you'll want to make the most of it. I hope things get better for you and wherever you end up, it's where you need and want to be.

Pulaski

That is an oversimplification which generally speaking isn't true.

Novocastrian

OK, but I thought I was agreeing with you. On re-read perhaps not.

It's not something I've ever needed to know.

Pulaski

I thought you were too - until your last few words.

fremantle

Thanks so much everyone for your input. Much appreciated.

Editha

I don't agree that the OP necessarily needs (expensive) professional advice. There is a guide to residential property relief here:

https://www.gov.uk/tax-relief-selling-home

If the OP uses the guide, she can probably work out how much CGT she is liable for, if any.

Pulaski

There are nuances surrounding whether the period spent in Australia is tax free, and a few hundred pounds to get a professional assessment when the liability could be several tens of thousands of pounds, not to mention the risk of being found to have evaded taxes, is a very low cost IMO.

Editha

At the very least, before the OP pays money for professional advice, she should ring the government CGT helpline. If she is satisfied with the advice they give her for free, then she can save herself time and money.

fremantle

Thanks very much for that. I will look into it.
Thanks again