hawks Posted September 20, 2013 Report Share Posted September 20, 2013 Hi All, I'm looking for some guidance around tax on property. I'm trying to find out about implications on both sides of the fence. I've done a fair bit of reading on the HMRC website, and it would suggest that as long as I lived in the house, and sell it within 3 years of moving out, I should be exempt from tax in the UK. All good there. While doing my Aus tax return recently, one of the questions was "Have you made any money form the sale of an asset overseas". If I sell my property this year, do I have to declare it in Aus, and will they charge me tax on the profit? If I sell the house beyond the 3 years of moving out, will I have to pay tax in the UK and in Aus? It makes a big difference as to whether I sell up now or hang on a bit longer. Thanks Quote Link to comment Share on other sites More sharing options...
elfie Posted September 20, 2013 Report Share Posted September 20, 2013 In a nutshell yes you will have to declare it and pay tax on it in Australia. Depends on how much money you make on the house in the UK regarding paying tax. If we sold our properties in the UK we would be clobbered with tax.............. My advice would be to get a good tax accountant in the UK to seek advice then also one in Australia. Quote Link to comment Share on other sites More sharing options...
Guest guest9824 Posted September 20, 2013 Report Share Posted September 20, 2013 (edited) Yep, you will pay tax on it. But only once you bring the money over. We kept ours in a bank account after we sold our property until such time as we needed the money, ie. to purchase a property here. We also did this to get a better exchange rate, and the funds gained quite a substantial amount of interest. Once you purchase a property here, if its over the 500,000 threshold (I think that is what it is) you will also pay a tax to the government (like a stamp duty tax)...and that can be hefty too! Looks like the GST might be going up as well from 10% to 12.5% as Mr. Barnett needs to get his credit rating back to AAA:sad:...'tax them and they will come!' Edited September 20, 2013 by guest9824 punctuation! Quote Link to comment Share on other sites More sharing options...
lozzachino Posted September 20, 2013 Report Share Posted September 20, 2013 So they take into account the purchase price v the sale price? So you only pay tax if you sell for more than you bought it for? and if you are taxed on it in aus, you dont pay capital gains tax in the uk as well? sound like stupid questions but i would like to confirm this as well! Trying to decide whether to sell up and just get rid of the house or hang into it as a long term investment. We have been renting our house out since 2011 so its coming up to the three year mark for us and i doubt we would be able to sell it before then Quote Link to comment Share on other sites More sharing options...
elfie Posted September 20, 2013 Report Share Posted September 20, 2013 Have 2 let back home wouldn't think of selling time is not right market in the UK is dire with no sign of a quick recovery. Hang on to it Lozza long term specially if you have good tenants you never know whats round the corner. Quote Link to comment Share on other sites More sharing options...
Walkeroos Posted September 20, 2013 Report Share Posted September 20, 2013 The market in the uk is booming. my friend owns an estate agents and he has never been as busy in 5 years. the new housing market is booming too. I work for a house builder and we have sold 70 out of a 120 plots. 35 of which are waiting to be built. my friend (the estate agent) expects house prices to rise by 20% by this time next year. so things aren't dire. the signs are there for a great recovery. Quote Link to comment Share on other sites More sharing options...
hawks Posted September 20, 2013 Author Report Share Posted September 20, 2013 I will chatting to someone at work, and they reckon as long as you haven't bought a property in aus yet, your UK home is still your primary residence, so when you sell you won't pay tax on it. As long as you lived in the house at some point. Quote Link to comment Share on other sites More sharing options...
Guest guest10912 Posted September 21, 2013 Report Share Posted September 21, 2013 I will chatting to someone at work, and they reckon as long as you haven't bought a property in aus yet, your UK home is still your primary residence, so when you sell you won't pay tax on it. As long as you lived in the house at some point. I agree. If this is your only property there is no tax to be concerned about. Quote Link to comment Share on other sites More sharing options...
lozzachino Posted September 21, 2013 Report Share Posted September 21, 2013 What area do they work in walkeroo? Im sure it varies wildly across the country. Its been pretty stagnant where we lived for at least three years. Quote Link to comment Share on other sites More sharing options...
lozzachino Posted September 21, 2013 Report Share Posted September 21, 2013 Hawks that sounds good! Will have to do some more investigating. Quote Link to comment Share on other sites More sharing options...
Carob Posted September 23, 2013 Report Share Posted September 23, 2013 Hi All, I'm looking for some guidance around tax on property. I'm trying to find out about implications on both sides of the fence. I've done a fair bit of reading on the HMRC website, and it would suggest that as long as I lived in the house, and sell it within 3 years of moving out, I should be exempt from tax in the UK. All good there. While doing my Aus tax return recently, one of the questions was "Have you made any money form the sale of an asset overseas". If I sell my property this year, do I have to declare it in Aus, and will they charge me tax on the profit? If I sell the house beyond the 3 years of moving out, will I have to pay tax in the UK and in Aus? It makes a big difference as to whether I sell up now or hang on a bit longer. Thanks Hiya, guess this only applies to selling a UK property after moving to Aus. If you sell before you leave UK, tax in Aus wouldn't kick in. Thanks. Quote Link to comment Share on other sites More sharing options...
andyplasterer Posted September 23, 2013 Report Share Posted September 23, 2013 What about rental income? Will I pay aus tax on my rental income from my houses in tye uk? I never gave this a thought until I read this post I just assumed my uk accountant would carry on doing my returns as normal Quote Link to comment Share on other sites More sharing options...
Guest guest10912 Posted September 23, 2013 Report Share Posted September 23, 2013 What about rental income? Will I pay aus tax on my rental income from my houses in tye uk? I never gave this a thought until I read this post I just assumed my uk accountant would carry on doing my returns as normal You need to declare UK rental income on both your UK and Australian tax returns. Do the UK one first, any tax paid there should be recorded as a tax credit on your Australian return which means you won't get taxed twice. If you don't pay any tax in UK because it is below the annual personal allowance, then the full amount of profit is taxed in Australia. Quote Link to comment Share on other sites More sharing options...
Guest gold vision financial Posted November 9, 2013 Report Share Posted November 9, 2013 (edited) Hi Hawks the above advise is correct in part that is - as long as it is your primary residence then there is no requirement to pay capital gains tax on the property as long as you comply with the relevant time period restrictions in each country. refer to the ato site: http://www.ato.gov.au/General/Capital-gains-tax/ If you have paid tax in the UK upon sale then you may be entitled to claim a foreign tax offset - refer to the link above. If you rent the property out then you must declare the income in Australia and you may be able to claim a foreign tax offset if you have paid tax in the UK on it. The above is general advice and from information easily obtainable from the ATO Site - Should wish to discuss further the pro and cons of selling up in the UK and help in obtaining a home and finance here then please do not hesitate to contact me. cheers Edited November 9, 2013 by portlaunay Advertising Quote Link to comment Share on other sites More sharing options...
ROB T Posted November 9, 2013 Report Share Posted November 9, 2013 I will chatting to someone at work, and they reckon as long as you haven't bought a property in aus yet, your UK home is still your primary residence, so when you sell you won't pay tax on it. As long as you lived in the house at some point. That 'someone at work' is correct. Quote Link to comment Share on other sites More sharing options...
BuntyStoops Posted February 9, 2014 Report Share Posted February 9, 2014 I have a property which is being rented out at the moment, but it isn't making me any money and to sell it I will make a loss - is it worth renting it out long term? Do you get massively taxed living in Oz and having property back in the UK? Cheers, Kirsty Quote Link to comment Share on other sites More sharing options...
Guest gold vision financial Posted February 9, 2014 Report Share Posted February 9, 2014 I have a property which is being rented out at the moment, but it isn't making me any money and to sell it I will make a loss - is it worth renting it out long term? Do you get massively taxed living in Oz and having property back in the UK? Cheers, Kirsty If you are an Australian Resident for Tax purposes then you must declare any income produced in the world. Australia has a tax agreement with the UK. In essence this means that you are not taxed twice on income produced in the UK. However if you are making a loss that is not producing an income then general speaking there is no tax payable on it in Australia. You should seek professional tax advice in both the UK and Australia regarding your tax obligations. The ATO site has detailed information on foreign income and you can speak with them directly for free to obtain detailed information on your personal situation. As for advice on whether or not you should sell I can not provide comments or advice on this via this forum. I will respond privately. John Horvath - Finance Manager/ Financial Adviser Gold Vision Financial Services - http://www.goldvision.com.au Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted March 24, 2014 Report Share Posted March 24, 2014 If you are an Australian Resident for Tax purposes then you must declare any income produced in the world. <snip> John Horvath - Finance Manager/ Financial Adviser Gold Vision Financial Services - www.goldvision.com.au ... unless you are resident in Australia as the holder of most types of temporary residency visa (eg a 457 visa, or a provisional business skills visa), when income from the UK is not subject to tax in Australia. Best regards. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted March 24, 2014 Report Share Posted March 24, 2014 PS. Note also that most residents of Australia who suffer a loss on an investment property in the UK can claim the loss as a tax deduction on their Australian tax return - ie it is possible to negatively gear a UK property. Quote Link to comment Share on other sites More sharing options...
JasonM Posted July 20, 2015 Report Share Posted July 20, 2015 sorry to hijack this thread, we are currently selling our property and a sale has been agreed we are just waiting on completion, i am pretty sure we will not have to pay tax on this sale in Australia as the sale is already in place. it should complete in 4-6 weeks... is this correct ???? Quote Link to comment Share on other sites More sharing options...
hawks Posted July 21, 2015 Author Report Share Posted July 21, 2015 sorry to hijack this thread, we are currently selling our property and a sale has been agreed we are just waiting on completion, i am pretty sure we will not have to pay tax on this sale in Australia as the sale is already in place. it should complete in 4-6 weeks... is this correct ???? Regardless of where you live, you have to declare to HMRC that you have sold the property, and they might charge you depending on your circumstances. If you are in Australia and you are a resident for tax purposes, you also have to declare it to the ATO, and Australia might charge you capital gains, BUT you won't have to pay twice. For example, if HMRC decides you owe £3000, and you pay that, and then ATO determines you need to pay $7000, the money you have already paid is credited so you pay the ATO ($7000 - £3000 = about $1000). I'm not an expert but that is my understanding. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted July 21, 2015 Report Share Posted July 21, 2015 sorry to hijack this thread, we are currently selling our property and a sale has been agreed we are just waiting on completion, i am pretty sure we will not have to pay tax on this sale in Australia as the sale is already in place. it should complete in 4-6 weeks... is this correct ???? Where are you living presently? What type of visa do you have if you are living in Australia? Best regards. Quote Link to comment Share on other sites More sharing options...
Lou8670 Posted July 21, 2015 Report Share Posted July 21, 2015 Where are you living presently? What type of visa do you have if you are living in Australia? Best regards. Alan, Jason is still in the UK and about to make the move... Quote Link to comment Share on other sites More sharing options...
JasonM Posted July 21, 2015 Report Share Posted July 21, 2015 Yeah fly out on the 22nd and land on the 23rd of July. I was of the understanding that ad the sale was already agreed that we wouldn't have to pay tax in australia as I expect we will be paying capital gains in the uk Quote Link to comment Share on other sites More sharing options...
JasonM Posted July 21, 2015 Report Share Posted July 21, 2015 Alan I am on a 189 visa, we did it through go matilda Quote Link to comment Share on other sites More sharing options...
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