Selling my property abroad and capital gains tax

gowgowuk

Damn, do you have even more bad news for me?
I guess I'm really frustrated that if only we didn't make that administrative choice 16 years ago, I would have to pay zero tax today....

bowieboy123

Hello, I hope you cannhelp me. We have sold an investments property in Australia recently. We owned it for about 17 years and throughout that time paid tax in Australia on the rental income. We have paid CGT in Australia and had the balance of funds sent to us here in the UK. We have now been informed that we are liable for CGT HERE IN THE UK! Is this correct? and why? Many thanks, I hope you can help me.

00ec25

bowieboy123 wrote: »

Hello, I hope you cannhelp me. We have sold an investments property in Australia recently. We owned it for about 17 years and throughout that time paid tax in Australia on the rental income. We have paid CGT in Australia and had the balance of funds sent to us here in the UK. We have now been informed that we are liable for CGT HERE IN THE UK! Is this correct? and why? Many thanks, I hope you can help me.

presumably you are a tax resident of the UK therefore you are liable for UK tax on your worldwide income and capital gains

I hope you have declared the rental income to date to HMRC otherwise your case just got rather messy

the good news is that liability for tax is not the same as paying tax

In very simplified terms: you are liable for tax in the UK but the amount you may have to pay will be reduced by a credit given for the tax paid in Aus - this is because there is a double taxation treaty in place and means if you tax is 40% and Aus tax paid is 30% you will only have to pay the difference of 10% to the UK.
others are more expert on double tax so wait and see what they say

Cook_County

The gain is taxable in the UK using spot exchange rates for each transaction. You may claim credit for Australian tax on any doubly taxed gain.

AMI100

Hi, I am wondering if someone can help with my question which is a bit different to the others. My family and I lived in Germany and while there we bought and lived in an apartment, we lived there for 5 years. Suddenly we had to move back to UK in August this year and would like to sell the apartment in Germany to buy one in UK. We only own 1 apartment, the German apartment. Do we have to pay CGT even though we are selling our only home and do we have to pay CGT in Germany because we are no longer resident there. Any help on this would be wonderful. Many thanks.

macman

CGT is only payable in the UK on a second property. I have no idea what the tax law is in Germany.

zygurat789

macman wrote: »

CGT is only payable in the UK on a second property. I have no idea what the tax law is in Germany.

Wherever that property may be

Evengers

In Germany if you sell the property within 10 years you pay CGT. After that it is CGT free.

From the comments above it seems that a person moving from Germany to the UK and then selling a property in Germany would be liable to CGT in the UK regardless of the German liability.

What if the UK tay payer was non-(UK)domiciled, only remaining in the UK for a few years but sold the German property while in the UK?

Also does it matter if the taxpayer is using the "remittance basis"?

Thanks