Aussiebird Posted February 16, 2020 Share Posted February 16, 2020 Hi everyone, We are planning our move back to Australia as my husband has been granted his Partner visa 309/100. We will be selling our only UK home before we go. My question is: When we have sold our property, the money from the sale will stay in our UK bank account. Once we have arrived in Australia, we will be looking to buy our first home together as soon as we can. We will be staying with my brother to start with. Will we have to pay any sort of tax because we will have a lump sum in our bank account in the UK which we will transfer to our Australian bank account when the exchange rate is good. I've heard of Capital Gains Tax but don't understand how it works. I did think though, after reading some info, that CGT only applies in certain circumstances?? Any info would be much appreciated. Many thanks in advance. 1 Quote Link to comment Share on other sites More sharing options...
Amber Snowball Posted February 16, 2020 Share Posted February 16, 2020 Can't help with the question but congrats on the visa grant, you must be so relieved! Quote Link to comment Share on other sites More sharing options...
Aussiebird Posted February 16, 2020 Author Share Posted February 16, 2020 22 minutes ago, Amber Snowball said: Can't help with the question but congrats on the visa grant, you must be so relieved! Thank you so much, relieved is not the word!! 8 months of waiting but totally worth it! X 2 Quote Link to comment Share on other sites More sharing options...
Jon the Hat Posted February 16, 2020 Share Posted February 16, 2020 No you don't pay any tax on moving funds from the UK to Australia, although I guess there might be some of the usual proof of where they came from anti-money laundering paperwork. In the UK you don't pay CGT on the sale of primary home, so as long are you are living in it no problems there. If you were to move to Australia without selling, and then sell after 6 months plus (from April 2020 I think) then you might be liable to pay UK CGT on the increase in the value of the property (if any) from when it ceased to be your home. 2 Quote Link to comment Share on other sites More sharing options...
Aussiebird Posted February 16, 2020 Author Share Posted February 16, 2020 9 minutes ago, Jon the Hat said: No you don't pay any tax on moving funds from the UK to Australia, although I guess there might be some of the usual proof of where they came from anti-money laundering paperwork. In the UK you don't pay CGT on the sale of primary home, so as long are you are living in it no problems there. If you were to move to Australia without selling, and then sell after 6 months plus (from April 2020 I think) then you might be liable to pay UK CGT on the increase in the value of the property (if any) from when it ceased to be your home. Thank you so much, perfectly explained. X Quote Link to comment Share on other sites More sharing options...
Ken Posted February 17, 2020 Share Posted February 17, 2020 On 16/02/2020 at 23:17, Jon the Hat said: No you don't pay any tax on moving funds from the UK to Australia, although I guess there might be some of the usual proof of where they came from anti-money laundering paperwork. In the UK you don't pay CGT on the sale of primary home, so as long are you are living in it no problems there. If you were to move to Australia without selling, and then sell after 6 months plus (from April 2020 I think) then you might be liable to pay UK CGT on the increase in the value of the property (if any) from when it ceased to be your home. You'd also be liable to Australian CGT if you sold the property after moving back to Australia (although you can claim the exemption for your former home for up to 6 years after you stopped living there - provided you don't also want to claim it on another property for the same period), but there is no CGT on moving funds from one bank account to another (if you open a bank account to trade forex that's a different tax issue). Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted February 21, 2020 Share Posted February 21, 2020 On 16/02/2020 at 23:17, Jon the Hat said: No you don't pay any tax on moving funds from the UK to Australia, although I guess there might be some of the usual proof of where they came from anti-money laundering paperwork. In the UK you don't pay CGT on the sale of primary home, so as long are you are living in it no problems there. If you were to move to Australia without selling, and then sell after 6 months plus (from April 2020 I think) then you might be liable to pay UK CGT on the increase in the value of the property (if any) from when it ceased to be your home. Unfortunately not correct - the reference point when computing the capital gain for UK purposes depends on when you bought it. And the exempt period is expected to be 9 months from 6 April 2020. Don't overlook the UK's CGT Annual Exemption as well. There is then Australian CGT to consider too (as Ken says) - plus possibly forex provisions when the GBP mortgage is redeemed. Best regards. Quote Link to comment Share on other sites More sharing options...
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