mxh Posted June 5, 2023 Share Posted June 5, 2023 I'm thinking of selling my (currently rented out) house in the UK and bringing the funds over to Aus. It's been rented out for 10+ years now, and I lived in it for about 15 years before moving over here. When it comes to CGT, I'm aware that I'll need to pay some, but I'm wondering if there are any tips on minimizing this. I think I'm right in saying that you can 're-base' the value of the house as at 2015 and use that as the starting point for CGT calculations (ie CGT will be based on the difference between that 2015 value and the current value). Is that correct? Anything else that's worth knowing about. And yes, I'll probably talk to a financial advisor at some point, but at this stage I just wanted to get an idea of any strategies that may be available. Quote Link to comment Share on other sites More sharing options...
Steve Elliott Posted June 5, 2023 Share Posted June 5, 2023 This isn't a question for a financial advisor and most financial advisers aren't qualified to answer your question as providing "tax financial advice" requires the adviser is registered with the tax practitioner board in Australia. The answer to your question will no doubt be found in your tax residency status and the relevant timelines. Thus, you really should be talking to an accountant who is familiar with both the UK and Australian tax frameworks. Good luck. 2 Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 5, 2023 Share Posted June 5, 2023 54 minutes ago, mxh said: I'm thinking of selling my (currently rented out) house in the UK and bringing the funds over to Aus. It's been rented out for 10+ years now, and I lived in it for about 15 years before moving over here. When it comes to CGT, I'm aware that I'll need to pay some, but I'm wondering if there are any tips on minimizing this. I think I'm right in saying that you can 're-base' the value of the house as at 2015 and use that as the starting point for CGT calculations (ie CGT will be based on the difference between that 2015 value and the current value). Is that correct? Anything else that's worth knowing about. And yes, I'll probably talk to a financial advisor at some point, but at this stage I just wanted to get an idea of any strategies that may be available. Hi mxh The point you make in bold is in relation to UK CGT not OZ CGT, there will be a UK calculation to be done as well as an OZ calculation to be done. I'd suggest that you engage a Tax Adviser as Steve mentions above who is qualified here and in the UK to do some preliminary calclations for you, such as Alan Collett. There really is unlikely to be much that you can do from a HMRC perspective however there may well be from an ATO perspective by utilising superannuation contributions and this is where a licensed Australian Financial Planner can come into play (I have worked on this basis in conjunction with Alan in the past for clients of mine). Regards Andy 2 Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted June 5, 2023 Share Posted June 5, 2023 If you would like an initial freebie chat please feel able to ping a private message or (preferably) an email to me - my bdh Tax email address is below. Best regards. Quote Link to comment Share on other sites More sharing options...
Ken Posted June 6, 2023 Share Posted June 6, 2023 (edited) On 05/06/2023 at 14:10, mxh said: I'm thinking of selling my (currently rented out) house in the UK and bringing the funds over to Aus. It's been rented out for 10+ years now, and I lived in it for about 15 years before moving over here. When it comes to CGT, I'm aware that I'll need to pay some, but I'm wondering if there are any tips on minimizing this. I think I'm right in saying that you can 're-base' the value of the house as at 2015 and use that as the starting point for CGT calculations (ie CGT will be based on the difference between that 2015 value and the current value). Is that correct? Anything else that's worth knowing about. And yes, I'll probably talk to a financial advisor at some point, but at this stage I just wanted to get an idea of any strategies that may be available. As Andrew has told you the 2015 date is only the date for UK CGT (prior to that date there was no CGT on residential property, but non-residents have been hit by it since then). For Australian tax it depends upon when you became tax resident in Australia (on a permanent not a temporary visa) but there are ways of reducing your CGT further, including classing the property as your principle private residence for up to 6 years after you stopped living there (you can only have one PPR at a time though so you have to be careful with that) and the 50% discount for owning it for more than one year (but note that this also reduces the amount of UK tax paid that you can claim as an offset by 50%) and as Andrew has touched on you can reduce your tax bill by making a concessional contribution to Super. Talk to a Tax Agent. Also beware that selling a property in June means paying the tax an entire year earlier than if the sale is in July as it's in an earlier tax year - for UK property sales the date you exchange contracts should be the date that applies for tax purposes even if you don't get the money until later. Edited June 6, 2023 by Ken Quote Link to comment Share on other sites More sharing options...
mxh Posted June 7, 2023 Author Share Posted June 7, 2023 Thanks for the replies. Alan, I've taken you up on your offer and sent you an e-mail - probably time to get some formal advice! 3 Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted June 7, 2023 Share Posted June 7, 2023 Got it - many thanks. Best regards. Quote Link to comment Share on other sites More sharing options...
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