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wooken(Newbie)Newbie
4 Dec 2023

A retrospective question. My UK friend moved to Australia in 2002 from the UK permanently eventually becoming a citizen in 2004. Her property in the UK where she had lived for approx 3 years was rented out to her friends until 2005 to pay the mortgage. The property was then sold.

Original price when purchased was 60K, in 2002 was 100K and when sold in 2005 was 141K.

My question is was my friend liable for CGT in either the UK or Australia ? I do know that in Australia you can rent out your PPOR for six years meaning no CGT.

Should my friend have also declared the profits from the sale in his ATO tax return as foreign income.



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Most helpful replyATO Certified Response

Deb_ATO(Community Support)Community Support
ATO Certified Response11 Dec 2023

Hi @wooken


Yes, if your friend was an Australian Resident for tax purposes.

Capital Gains tax applies to assets anywhere in the world.

This should've been included in their Australian Income Tax Return.


If they’ve paid Foreign tax on this Capital Gain, they may be entitled to a Foreign income tax offset. This helps from being taxed twice.


Check out our further info to help with all your questions and CGT on an overseas property and Am I eligible for the foreign income tax offset.


All replies

Most helpful replyATO Certified Response

Deb_ATO(Community Support)Community Support
ATO Certified Response11 Dec 2023

Hi @wooken


Yes, if your friend was an Australian Resident for tax purposes.

Capital Gains tax applies to assets anywhere in the world.

This should've been included in their Australian Income Tax Return.


If they’ve paid Foreign tax on this Capital Gain, they may be entitled to a Foreign income tax offset. This helps from being taxed twice.


Check out our further info to help with all your questions and CGT on an overseas property and Am I eligible for the foreign income tax offset.


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