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QQH926(Newbie)Newbie
1 June 2026

I lived and worked in the UK between 2016 and March 2024, and during that time, some company shares vested. I paid all my UK income tax to HMRC on those shares when they vested.


In August 2024, I moved back home and became an Australian tax resident again. I am now looking to sell these shares and want to make sure I calculate the Australian tax correctly.


Could someone please confirm if my understanding of the rules is right?

  1. The Starting Value (Cost Base): Is my starting value for Australian tax purposes the Market Value of the shares on the day I became an Australian tax resident in August 2024?
  2. The 50% CGT Discount: Because I’ve been back in Australia and holding these shares for over 12 months (since August 2024), do I get the 50% Capital Gains Tax discount on any profit made since I got back?
  3. Past UK Taxes: Since I already paid UK tax when they vested, am I correct that Australia completely ignores the value of the shares before August 2024, and I only owe tax on the growth that happened after I became an Aus resident?

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PollyATO(Community Support)Community Support
3 June 2026

Hey there @QQH926,


Your understanding is mostly right.


When you became an Australian tax resident in August 2024, you are treated as if you bought the shares again at their market value on that date. This value becomes your cost base for capital gains tax (CGT). You should keep a record of that value.


From then on, Australia only looks at what happens while you are a resident. This means you only pay tax on the increase in value after August 2024. Any growth before that time is not taxed in Australia.


If you sell the shares later, you may get the 50% CGT discount. To get this, you must:

  • be an Australian resident when you sell, and
  • hold the shares for at least 12 months after August 2024.

The UK tax you paid when the shares vested does not change this. That was a different tax event while you were living in the UK.

In short:

  • cost base = market value when you became a resident
  • tax = only on growth after that date
  • 50% discount = yes, if held for 12 months after returning

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I moved back to Aus with vested UK company shares. How do I calculate the tax when I sell them? | ATO Community