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Tax on UK property sale

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Newbie

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Hi, if I sell a uk property which has been rented out for 10+ years and bought a house and lived here for 5+ years, what is my tax obligation.  Thanks

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Taxicorn

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If you lived in it before renting it out you can be absent for up to 6 years and still claim it as a primary place of residence.

 

So, 2008 to 2010 (when you bought a new house) will be CGT free.

 

2010 until you sold it will be liable for CGT.

 

So if owned for 2008 until 2019 that is 11 years and 2 years id CGT free or 18.18%.

 

Now you need to work out the cost base and subtract it from the selling price x 81.82% x 50% (owned for more than 12 months discount).

This amount is added to your taxable income and taxed accordingly.

 

 

 

3 REPLIES 3

Taxicorn

Replies 2

There will be capital gains tax on the UK property.

 

(1) Need to know market value when you became an Australian Resident for tax purposes.

(2) Need to know if you ever lived in the UK house.

(3) Need to know, if you ever owned any other house and for how long.

 

Knowing the above will assist in determining how it is treated and calculated for CGT

Newbie

Replies 1

1.  90,000 GBP

2.  For 2 years, 2006-08

3.  Bought a house in Australia with partner in 2010 (UK house was in my name only, pre-marriage).  Never owned any other property.

 

Best answer

Taxicorn

Replies 0

If you lived in it before renting it out you can be absent for up to 6 years and still claim it as a primary place of residence.

 

So, 2008 to 2010 (when you bought a new house) will be CGT free.

 

2010 until you sold it will be liable for CGT.

 

So if owned for 2008 until 2019 that is 11 years and 2 years id CGT free or 18.18%.

 

Now you need to work out the cost base and subtract it from the selling price x 81.82% x 50% (owned for more than 12 months discount).

This amount is added to your taxable income and taxed accordingly.

 

 

 

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