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Selling UK property - rollover capital gains

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Newbie

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I have a property in the UK. Purchased in 2012, primary place of residence until 2014 when I relocated to Australia. It is currently rented out.

 

I understand I will most likely have a capital gain liability in UK and AU if I sell the property. If I put the proceeds of the sale of the UK property straight in to a new property purchase in Australia is there a capital gains liability? 

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Taxicorn

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@chrismain 

 

Doesn't matter where the money goes, it doesn't affect the liability for capital gains tax.

 

If you are considered to be an Australian Resident for tax purposes then there should be no obligation to pay CGT in the UK.

 

You can only have one principal place of residence, so if you own another property then you need to decide, when you sell it which one and for how long e.g.

 

UK 2012-2014 Main Residence

UK 2014-2020 Main residence (absent 6 years rule)

 

So no CGT, but there will be on any property you owned since 2014.

 

You need to sit down with a tax professional and calculate which is better to claim.

 

You claim the Main residence on the property that will generate the maximum profit, hence less CGT.

 

You can split it between the two also e.g.

UK Main Residence 2012-2014 (CGT from 2014-2020)

Aust 2014-2020 - no CGT

 

The cost base of the UK property will be market value when you became an Australian Resident for Taxation.

 

 

1 REPLY 1
Highlighted

Best answer

Taxicorn

Replies 0

@chrismain 

 

Doesn't matter where the money goes, it doesn't affect the liability for capital gains tax.

 

If you are considered to be an Australian Resident for tax purposes then there should be no obligation to pay CGT in the UK.

 

You can only have one principal place of residence, so if you own another property then you need to decide, when you sell it which one and for how long e.g.

 

UK 2012-2014 Main Residence

UK 2014-2020 Main residence (absent 6 years rule)

 

So no CGT, but there will be on any property you owned since 2014.

 

You need to sit down with a tax professional and calculate which is better to claim.

 

You claim the Main residence on the property that will generate the maximum profit, hence less CGT.

 

You can split it between the two also e.g.

UK Main Residence 2012-2014 (CGT from 2014-2020)

Aust 2014-2020 - no CGT

 

The cost base of the UK property will be market value when you became an Australian Resident for Taxation.