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CGT on sale of main residence in UK

Newbie

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Hi 

I have a question about CGT on a property we owned in the UK and have now sold. It is a bit more complicated than other posts I have seen.

 

My wife bought an apartment in the UK in 1996

We lived there together until 2000

She rented it out until it sold in 2018

 

We bought our home together in the UK in 2000

We lived there together until 2006

We rented it out until we sold it in 2017

CGT already paid in UK and Australia.

 

We bought our next home together in 2006

We lived there together until we came to Australia in 2011

We rented it out until we sold it in 2018

 

We rented a property together in Australia in 2011

We lived there together until 2014 

We bought our home together in Australia in 2014

 

My question is this. For the years 2011 until 2014 our main residence was still the property bought in 2006 from what I can gather from other posts. Is this correct please?

We are in the process of sorting our tax out for 2018/19 as far as CGT is concerned and this is outside the current knowledge of our accountant. Any light you can shed on this would be a great help.

 

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Hi @andytheexpom,

 

Welcome to our Community!

 

Generally speaking, you choose which single residence if your main residence. The property you choose as your main residence is generally exempt from CGT unless you've used it to earn rent or run a business. You can only have one main residence at a time and CGT will apply on the sale of all of your other properties.

 

Considering you've owned a number of properties, if you'd like to receive a more detailed response relating to your situation you can write to us to request a private ruling. Private rulings are binding advice from us that explains our view on how the tax law applies to your specific situation. They are free and we aim to respond within 28 days from receiving your request. Your accountant can also use the information provided in the private ruling to lodge your tax return.

 

Thanks, JodieH.

5 REPLIES 5

Most helpful response

ATO Certified Response

Community Support

Replies 4

Hi @andytheexpom,

 

Welcome to our Community!

 

Generally speaking, you choose which single residence if your main residence. The property you choose as your main residence is generally exempt from CGT unless you've used it to earn rent or run a business. You can only have one main residence at a time and CGT will apply on the sale of all of your other properties.

 

Considering you've owned a number of properties, if you'd like to receive a more detailed response relating to your situation you can write to us to request a private ruling. Private rulings are binding advice from us that explains our view on how the tax law applies to your specific situation. They are free and we aim to respond within 28 days from receiving your request. Your accountant can also use the information provided in the private ruling to lodge your tax return.

 

Thanks, JodieH.

Newbie

Replies 0

Thank you for the reply and the links. After speaking to my accountant, we have come to the decision that a private ruling is probably the best way forward. At least that way we will have no uncertainty about our position. If it is appropriate and will help others, I will try to add the findings after they are judged. There must be many expats in a similar situation.

Newbie

Replies 2

Hi Jodie

Just to let you know that the link is now out of date.

Community Support

Replies 1

Hi @andytheexpom

 

Thanks for reaching out!

 

We've checked the links provided in our post and they seem to be working correctly. If you're having trouble viewing the information we suggest clearing your cache or trying a different internet browser. 

 

Thanks, JodieH. 

Newbie

Replies 0

Hi JodieH

You are correct. The link is correct. I just had to jump through hoops downloading to desktop and then opening with Adobe Reader. Painfull but we got there.

Andy