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JayGirl(Newbie)Newbie
9 June 2024

My husband and I are looking to move to the UK to live. We are considering a period of 3-10 years living there, depending on how well it goes. If our adult children choose to stay in Australia, we would like to have an apartment for them in our name.


  1. If the children move out whilst we are in the UK and we choose to rent this property, how do manage the tax on the property and living and working in the UK? Is it taxed in Australia and in the UK? Can we claim negative gearing if we choose to keep the income from the property in Australia and complete a tax return in Australia annually?
  2. If we choose to sell the property whilst living in the UK, are we taxed in Australia or the UK?
  3. If we keep the property (regardless of whether the children stay or we are renting it out) and then choose to sell it after 10-15 years back in Australia, what are the capital gains tax implications?




3,564 views
1 replies
3,564 views
1 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
14 June 2024

Hi @JayGirl


1. Since the property is located here, you'd need to complete an Australian tax return to declare your rental income. You can also claim rental deductions. If there's a loss amount it can reduce your overall taxable income (if you have other income here) and any tax losses can be carried forward.


2. Yes CGT will apply when you sell. Your apartment will be knows as taxable Australian property.


3. You'd work out CGT using the formula linked. Australian tax residents qualify for the CGT discount and main residence exemption so depending on when you sell a partial exemption may apply if you lived in the property at any stage as your main residence.


You'd need to check with the UK tax authority about any implications there. We have a tax treaty with the UK which'll have guidance to avoid being taxed twice. Also check out your guide to CGT and property for info.

All replies

Most helpful reply

AriATO(Community Support)Community Support
14 June 2024

Hi @JayGirl


1. Since the property is located here, you'd need to complete an Australian tax return to declare your rental income. You can also claim rental deductions. If there's a loss amount it can reduce your overall taxable income (if you have other income here) and any tax losses can be carried forward.


2. Yes CGT will apply when you sell. Your apartment will be knows as taxable Australian property.


3. You'd work out CGT using the formula linked. Australian tax residents qualify for the CGT discount and main residence exemption so depending on when you sell a partial exemption may apply if you lived in the property at any stage as your main residence.


You'd need to check with the UK tax authority about any implications there. We have a tax treaty with the UK which'll have guidance to avoid being taxed twice. Also check out your guide to CGT and property for info.

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