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Moving back to UK

Newbie

Views 296

Replies 1

Hi new to group but have some questions hoping you can help with.

My wife and I are planning to move back to UK where we were both born with our two children (who were born in Australia) We all have dual nationality. We have our superannuation here in Oz which I believe we cannot access until we are 65. Is that correct? 
Secondly we have our family permenant residence which we plan to sell. We have owned the property for five years having rented it out for one of those years. I under stand we can sell the property and still claim as primary residence for CGT exemption purposes for four of the five years - correct?

Thirdly we have an investment property in Sydney. We are unsure what to do with it on the off chance we do not repatriate well and wish to return to Sydney, it would provide us a base with a good catchment area for schools in Sydney for the children. Again a contingency plan should the repatriation now work. (We know we will really miss Sydney). However what I would like to understand is do we have to ou a higher tax rate in Australia if we sell our investment property whilst residing in the UK? Also would we have to pay tax in Australia and also have to pay tax in the UK as part of an overseas capital gains? 

Few questions but hoping someone may be able to shed some light. 

many thanks

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

1. Main residency

CGT - Australian Tax Resident

If you moved in immediately after the property settlement, later you rent it out, the property can be treated as your main residency for CGT for up to 6 years as long as you do not nominate another property as your

main residency during this period.

 

Your property may be eligible for full CGT main residency exemption even if it was rented out for 1 out of 5 years. 

 

If you have to pay CGT, because you have held the property for more than 12 months, 50% CGT discount apply.

 

https://www.ato.gov.au/general/capital-gains-tax/your-home-and-other-real-estate/your-main-residence...

 

CGT - foreign tax resident

Foreign tax residents no longer qualify for the main residency CGT exemption from 1 July 2020.

 

If you sell the property after becoming a UK tax resident, CGT apply. No 50% CGT discount either.

 

https://www.ato.gov.au/General/Capital-gains-tax/International-issues/Foreign-residents-and-main-res...

 

2. Investment property

CGT - Australian Tax Resident

If you hold the property for more than 12 months, a 50% CGT discount apply.

 

CGT - Foreign Tax Resident

CGT discount is not available to foreign tax resident

https://www.ato.gov.au/general/capital-gains-tax/international-issues/cgt-discount-for-foreign-resid...

 

 

 

 

 

 

 

 

 

 

1 REPLY 1

Most helpful response

Devotee

Replies 0

1. Main residency

CGT - Australian Tax Resident

If you moved in immediately after the property settlement, later you rent it out, the property can be treated as your main residency for CGT for up to 6 years as long as you do not nominate another property as your

main residency during this period.

 

Your property may be eligible for full CGT main residency exemption even if it was rented out for 1 out of 5 years. 

 

If you have to pay CGT, because you have held the property for more than 12 months, 50% CGT discount apply.

 

https://www.ato.gov.au/general/capital-gains-tax/your-home-and-other-real-estate/your-main-residence...

 

CGT - foreign tax resident

Foreign tax residents no longer qualify for the main residency CGT exemption from 1 July 2020.

 

If you sell the property after becoming a UK tax resident, CGT apply. No 50% CGT discount either.

 

https://www.ato.gov.au/General/Capital-gains-tax/International-issues/Foreign-residents-and-main-res...

 

2. Investment property

CGT - Australian Tax Resident

If you hold the property for more than 12 months, a 50% CGT discount apply.

 

CGT - Foreign Tax Resident

CGT discount is not available to foreign tax resident

https://www.ato.gov.au/general/capital-gains-tax/international-issues/cgt-discount-for-foreign-resid...