Guest ianfrase

selling house in the Uk

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    Guest ianfrase

    I have a house in the UK and I have been looking at the implications for Capital Gains Tax when I sell.

     

    Here are my details and questions.

     

    1 I am a permanent resident here in Oz

    2 I think I am liable for CGT with the Australian Tax Office if/when I sell my house

    3 Capital Gains tax is calculated on the valuation of the house when I arrived in Australia and the price when sold.

    4 For the valuation of the house. Do I get an estate agent to give a valuation or does it have to be a property surveyor as one person posted on another board? Also do I need more than one valuation?

     

    Any help with these questions would be much appreciated as it is a little confusing.

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    Capital Gains tax is not that straightforward. There are deductions that can be made to mitigate the amount that is assessable.

    I suggest that you talk to an accountant to find out what the Tax Office will accept in the way of valuation.

    In our case, when we sold one property, the valuation was taken from the valuation given by the Rates Office of the Valuer General.

    In another, it was the purchase price, less the cost of any capital improvements which had not been offset against the income.

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    I have a house in the UK and I have been looking at the implications for Capital Gains Tax when I sell.

     

    Here are my details and questions.

     

    1 I am a permanent resident here in Oz

    2 I think I am liable for CGT with the Australian Tax Office if/when I sell my house

    3 Capital Gains tax is calculated on the valuation of the house when I arrived in Australia and the price when sold.

    4 For the valuation of the house. Do I get an estate agent to give a valuation or does it have to be a property surveyor as one person posted on another board? Also do I need more than one valuation?

     

    Any help with these questions would be much appreciated as it is a little confusing.

     

    Hi Ian

     

    Yes, definitely can be confusing.

     

    Being permanent resident here would open you up to potential CGT.

     

    Generally the ATO will be interested in the growth (if any) upon sale which is generally based on the value of the property in Australian Dollar terms as at date of becoming tax resident against the value in Australian Dollar terms upon sale.

     

    However this can generally then be mitigated by utilising other allowable deductions/exemptions, particularly if this was ever your own place of residence http://www.ato.gov.au/General/Capital-gains-tax/In-detail/Real-estate/Treating-a-dwelling-as-your-main-residence-after-you-move-out/

     

    Well worth seeking advice from a qualified Tax Adviser for clarification.

     

    Regards

     

    Andy

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    Guest ianfrase

    Thanks Andy

    One question regarding a valuation of the house in the UK when you left.

    Do you know if the AUstralian govt will accept an estate agent valuation or is there some other method they require?

     

    regards

     

    Hi Ian

     

    Yes, definitely can be confusing.

     

    Being permanent resident here would open you up to potential CGT.

     

    Generally the ATO will be interested in the growth (if any) upon sale which is generally based on the value of the property in Australian Dollar terms as at date of becoming tax resident against the value in Australian Dollar terms upon sale.

     

    However this can generally then be mitigated by utilising other allowable deductions/exemptions, particularly if this was ever your own place of residence http://www.ato.gov.au/General/Capital-gains-tax/In-detail/Real-estate/Treating-a-dwelling-as-your-main-residence-after-you-move-out/

     

    Well worth seeking advice from a qualified Tax Adviser for clarification.

     

    Regards

     

    Andy

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    Hi Ian

     

    Sorry I do not know for definite however given that the tax system is based on self-assessment it would be your responsibility to obtain as accurate a valuation as you can and if you did have a Estate Agent valuation prior to arriving I would imagine it could possibly be accepted.

     

    Regards

     

    Andy

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