As a foreign resident, do I pay CGT on inherited property?

 Author: YellowPotato(Taxicorn)Taxicorn

25 Apr 2026

I strongly suggest you see an registered (Australian) tax agent

Do I need a retrospective valuation on the property for when my nan died, my dad died, and my uncle died?

1. Nan. Market value on day nan died
   1. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/cost-base-of-inherited-assets
2. Dad, no
3. Uncle, no
4. 8 may 2012 is maybe (for CGT discount purpose)

Do I have to pay 45% CGT on the difference between the cost base when my Dad inherited his share in 2011 and me selling it now? (My nan owned it pre-1985).

Do I pay no CGT on the difference in market value from when my uncle died and me selling it now as it was his main residence and I couldn’t sell my share within 2 years because probate was lengthy and I was not the next of kin so had no control over it?

1. Cost base. It would be 50% of the initial cost base. Though likely just need cost base of your share and your dad's share given to you (25% + 25%÷3+25%÷3÷2×25%÷2), (your original + dad's % split + dad's % split from uncle's split + uncle's split)
   1. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/cost-base-of-inherited-assets
2. 2 year rule. Not sure on this one, definitely ask a tax agent. Above the questionaire, "If you are a foreign resident, or the deceased was a foreign resident, you are generally not entitled to the main residence exemption when you sell the property.". And from looking at legislation tax residency might not have an effect on the 2 year rule. Also what do you mean you couldn't sell within 2 years? Isn't 2 years december 2026?!
   1. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/inherited-property-and-cgt
   2. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/main-residence-exemption-for-foreign-residents

I have lived in the UK since 2018 and do not qualify for 50% discount

1. I think you are misunderstanding CGT discount for foreign tax resident. It's not a all or nothing. It's more, 'on this day, is there discount?' If there's a mix of yes and no, then you apportion the discount. Foreign tax resident don't have discount after 8 May 2012
   1. https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/cgt-discount-for-foreign-residents
2. Correct you wouldn't have 50% but there would be discount. The discount would depend on tax residency of the owner on that day. Very likely you have 3 different CGT discounts, though you probably only need the one for your share + the share from your dad (1. 25%, 2. 25%÷3, 3. 25%÷3÷2, 4. 25%÷2). 3 & 4, likely same discount

The 15% witholding tax will be paid directly to the ATO from my Aunty before I receive proceeds of sale, I assume this will be attributed as part of my 45% via my tax file number?

• Sounds about right for the withholding, though if the estimated tax on your CGT calculation is less than 15% then you could try to cary it down. Ask tax agent
• The tax rate would depend how much capital gain
• The gains would be taxed 30% until the next bracket, then taxed 37% until next bracket, then 45% for the rest
• https://www.ato.gov.au/tax-rates-and-codes/tax-rates-foreign-residents

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