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Question - Selling Uk Property Having Lived In Aus The Last 8 Years

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Hi

Im asking a question on my brother-in-laws behalf - so please be nice

He has lived in Aus the last 8 years and is definitely staying so is now selling his old UK house which has been let for the last 8 years.

Before he moved it was his sole residence for 5 years and remains his only UK property.

What is the score here with capital gains tax etc?

thanks in advance...........

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I am not an expert, but as far as I know there's no UK CGT liability for him if he has been resident outside of UK for more than 5 years, which seems to be his case.

But this situation might be changing in the near future, (as mentioned by the poster above), to bring non-residents into UK CGT range for UK disposals. (Not yet in place, and details unclear.) So might be a good idea to sell before this happens!

Will he have any Australian CGT liability though? (He needs to check re CGT in his country or residence.)

Also he might have to look at any "currency movement", (GBP v AUS$), if he has to pay CGT in the host country, as the host country will (probably) look at the price paid in the local currency (in this case AUS$) on the date the UK asset was purchased, and compare this to the sale value (in local currency) on the day of sale, in order to calculate the "profit" in the local currency ie AUS$. (As opposed to just considering the "GBP profit" and converting that into local currency, if you see what I mean.)

There can be a BIG difference in the calculated "AUS$ profit" depending on the local currency value on those 2 key dates. If the £ has changed a lot in value, versus the local currency, (AUS$), over the period of ownership, it could work in his favour, or against. Not much you can do about that I suppose except be aware how the CGT bill might be calculated?

Hope that helps for now. (But please check with an expert!)

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If you’re an Australian resident, CGT applies to your assets anywhere in the world.

https://www.ato.gov.au/General/Capital-gains-tax/

8 years ago GBP was $2.50 AUD now $1.80 AUD. On a £160k buy and sell ... it cost $400,000 AUD now gets $288,000. If the house price hasn't gone up he needs to have made a good few quid on rent. Particularly as 6% plus interest rates were widely available in Oz for longer than here.

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If you’re an Australian resident, CGT applies to your assets anywhere in the world.

https://www.ato.gov.au/General/Capital-gains-tax/

8 years ago GBP was $2.50 AUD now $1.80 AUD. On a £160k buy and sell ... it cost $400,000 AUD now gets $288,000. If the house price hasn't gone up he needs to have made a good few quid on rent. Particularly as 6% plus interest rates were widely available in Oz for longer than here.

So he hasn't made any gain then, in AUD terms? (So no CGT probs for him?)

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