Can you help any advice?

[Oz Dollar]

Sold house in Uk want to put my money towards house purchase in Perth WA.

Lived in house 9 years and was main residency.

I have $100,00  left from my sale in Uk towards my house purchase in Perth.

Do you pay any tax on transferring from the Uk to purchase a home in Perth WA.  If so what is the percentage please?

I hope you can help?

 

 

[Sarah Bass]

No tax in Perth payable as far as I know. The UK bought in new Capital Gains tax assessments for sale of houses in U.K. 3 years ago so you would have paid any tax (if applicable) in the UK already. 

Hope you find a good place at the now affordable prices we are seeing in Perth. 

[Warnbro]

The short answer is no. You won't have to pay any tax.

But. Do make sure that you keep evidence of the fact that this was your residence and that the money you transfer is from the proceeds of the house sale (more for money laundering purposes rather than taxation).

There is one circumstance where tax will be payable, and that is if there has been a change in the Pound to Dollar exchange rate between when you arrived in Australia and when you transfer the money. If the difference is in your favour, it will be classed as a foreign currency trade for profit and you will be expected to declare it on your tax return (tax will only be payable on the difference and not the whole sum).

That said, I know lots of people who transferred money after they arrived and none of them declared anything on their tax returns.

 

 

[Alan Collett]

https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property

Have you completed a Non Resident CGT Return and lodged this with HM Revenue?

You have 30 days to do this, whether or not you have realised a capital gain or a loss.

Feel able to send a private message to me (click on my name to the left of this post) if you think you might need some assistance with this form.

Best regards.

[Alan Collett]

4 hours ago, Warnbro said:

The short answer is no. You won't have to pay any tax.

But. Do make sure that you keep evidence of the fact that this was your residence and that the money you transfer is from the proceeds of the house sale (more for money laundering purposes rather than taxation).

There is one circumstance where tax will be payable, and that is if there has been a change in the Pound to Dollar exchange rate between when you arrived in Australia and when you transfer the money. If the difference is in your favour, it will be classed as a foreign currency trade for profit and you will be expected to declare it on your tax return (tax will only be payable on the difference and not the whole sum).

That said, I know lots of people who transferred money after they arrived and none of them declared anything on their tax returns.

 

 

Not necessarily.

The UK now charges CGT on the disposal of a residential property by a non UK resident person.

There can also be CGT payable in Australia on the disposal of a former main residence by an Australian resident individual.  

Whether there is any CGT payable is a factor of each individual's circumstances, which are not sufficiently detailed in the original post.

There are also exemptions from the forex gains and losses provisions in Australia, which ought to be explored more fully before concluding there is no foreign exchange gain or loss to be included on an Australian tax return.

Best regards..

[Oz Dollar]

Thank you ever so much Sarah,Warnbro and Alan,

So kind to reply and give me help and advice.

 I am a resident and have applied for my citizenship. ( so maybe calling on you guys again)?

This website has so many kind caring people thank you again I do not know what I would do with out you guys.

 

 

[HANCOX FAMILY]

On 5/14/2017 at 09:05, Alan Collett said:

Not necessarily.

The UK now charges CGT on the disposal of a residential property by a non UK resident person.

There can also be CGT payable in Australia on the disposal of a former main residence by an Australian resident individual.  

Whether there is any CGT payable is a factor of each individual's circumstances, which are not sufficiently detailed in the original post.

There are also exemptions from the forex gains and losses provisions in Australia, which ought to be explored more fully before concluding there is no foreign exchange gain or loss to be included on an Australian tax return.

Best regards..

Hi Alan, 

just read your post and I have a question, hope you don't mind...   

If you are a British citizen and a resident, you have gained your Australian permanent residency visa now you are looking to sell up and make the move. So you sell your property, you have 100k towards your oz purchase. Do you have to pay tax to UK government on this figure? and in Australia too?  

[Jen78]

4 hours ago, HANCOX FAMILY said:

Hi Alan, 

just read your post and I have a question, hope you don't mind...   

If you are a British citizen and a resident, you have gained your Australian permanent residency visa now you are looking to sell up and make the move. So you sell your property, you have 100k towards your oz purchase. Do you have to pay tax to UK government on this figure? and in Australia too?  

This is what we did, got PR, sold up and moved. Money transferred with moneycorp and now in savings. We didn't even think of capital gains tax so just looked it up on gov.UK and found this. We have just done our tax return and as we haven't earned the money abroad, it was transferred from one bank account to another, no tax to pay here either. No questions about transferred funds from another country on tax form so presume correct, can someone confirm for me please?

1. Private Residence Relief

You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:

• you have one home and you’ve lived in it as your main home for all the time you’ve owned it
• you haven’t let part of it out - this doesn’t include having a single lodger
• you haven’t used part of it for business only
• the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total
• you didn’t buy it just to make a gain

You don’t need to do anything. You’ll automatically get a tax relief called Private Residence Relief.

Hope this helps

Jen

[Alan Collett]

9 hours ago, HANCOX FAMILY said:

Hi Alan, 

just read your post and I have a question, hope you don't mind...   

If you are a British citizen and a resident, you have gained your Australian permanent residency visa now you are looking to sell up and make the move. So you sell your property, you have 100k towards your oz purchase. Do you have to pay tax to UK government on this figure? and in Australia too?  

Have you lived in the property as your main residence throughout the period in which you have owned it?

If so, the sale is exempt from CGT.

Best regards.

[HANCOX FAMILY]

12 hours ago, Alan Collett said:

Have you lived in the property as your main residence throughout the period in which you have owned it?

If so, the sale is exempt from CGT.

Best regards.

thanks Alan... yes i have owned t since i have brought it and its my main home so all good! 

[HANCOX FAMILY]

On 7/27/2017 at 20:27, HANCOX FAMILY said:

thanks Alan... yes i have owned t since i have brought it and its my main home so all good! 

Meant to say we lived in it since I brought it 

I have another question if thats ok... but want to explain my situation so your clear on our position... 

We got our permanent residency visa's granted last September, we then flew over to Perth in March for two weeks to validate our visa's and then came home to work and save our pennies for the move.  

With the house as we clarified earlier this is our main home so there is no tax to pay the UK side. There isn't any tax on this to pay in Australia is there?

Also the money separate to this which we have saved up by working in the UK, this doesn't get taxed in Australia too doe's it?

[Collie]

1 hour ago, HANCOX FAMILY said:

Meant to say we lived in it since I brought it 

I have another question if thats ok... but want to explain my situation so your clear on our position... 

We got our permanent residency visa's granted last September, we then flew over to Perth in March for two weeks to validate our visa's and then came home to work and save our pennies for the move.  

With the house as we clarified earlier this is our main home so there is no tax to pay the UK side. There isn't any tax on this to pay in Australia is there?

Also the money separate to this which we have saved up by working in the UK, this doesn't get taxed in Australia too doe's it?

In short - No (unless Alan knows of some obscure tax law which I don't).

You are just bringing over assets to start your new life.

You will pay tax on any interest received on those funds over her though but that is just normal stuff.

 

 

[HANCOX FAMILY]

7 hours ago, Collie said:

In short - No (unless Alan knows of some obscure tax law which I don't).

You are just bringing over assets to start your new life.

You will pay tax on any interest received on those funds over her though but that is just normal stuff.

 

Thanks Collie.  Thats really helpful, thanks for clarifying 

[Alan Collett]

19 hours ago, Collie said:

In short - No (unless Alan knows of some obscure tax law which I don't).

You are just bringing over assets to start your new life.

You will pay tax on any interest received on those funds over her though but that is just normal stuff.

 

 

Watch the forex rules if you put £ funds in an interest bearing savings account.

There are ATO Private Rulings that discuss this - while a Private Ruling is specific to the taxpayer that sought it the narrative in a Ruling is a good indication of the ATO's thinking on matters of a technical nature.

For example:

https://www.ato.gov.au/rba/content/?ffi=/static/rba/content/1012390159609.htm

Best regards.