Selling UK Property from Australia

[20thcenturyboy]

Has anyone sold a UK property while they are tax resident in Australia?
Just wondering on tax implications. I know UK HMRC want tax paid in the UK, but does the Aussie 50% CGT discount come into play in any way with tax credits, due to the double tax treaty with the UK?

[monabri]

Computer (*) says

Q: I live in Australia and pay taxes there. I have sold a house in Great Britain. Will I have to pay tax? Will I be able to claim the 50% discount on Capital Gains tax in Australia?

A: As an Australian resident for tax purposes, you are generally required to pay tax on your worldwide income, including any capital gains you make from selling assets overseas such as your property in Great Britain.

In Australia, capital gains tax (CGT) is levied on the sale of most assets, including property. However, the good news is that if you held the property for more than 12 months, you may be entitled to a 50% discount on the capital gain you make. This is commonly known as the CGT discount.

To calculate your capital gain, you would need to subtract the cost base of the property (i.e., the original purchase price plus any associated costs such as legal fees or stamp duty) from the sale price. If the resulting amount is a positive figure, you have made a capital gain.

You can then apply the 50% CGT discount if you have owned the property for more than 12 months. For example, if you made a capital gain of $100,000 and owned the property for more than 12 months, you can apply the discount, which reduces the taxable amount to $50,000.

However, you may still need to pay tax in Great Britain on the sale of the property, depending on the tax laws there. It's important to consult with a tax professional who is knowledgeable about the tax laws in both Australia and Great Britain to ensure that you are complying with all relevant tax laws and regulations



source

https://openai.com/blog/chatgpt

(*) Reference to Little Britain

[20thcenturyboy]

Thank you my AI Overlord

[modellingman]

The way the UK double tax treaties normally work (and I have no idea if this applies to the UK-Australia treaty) is that one country normally gets "first claim" on any tax due - and in the case of property (whether it is rental income or the capital gain on a sale) that is usually the country where the property is located. The "first claim" tax can usually be offset against any tax payable in the other country, where "usually" means depending on precisely what is written in the tax treaty.

So, if the usual rules apply, the gain and tax will first be calculated and paid under the UK rules and then calculated for a second time under Australian rules. If the Australian tax exceeds the UK tax then you'll pay the difference as Australian tax.

Note that you are required to inform HMRC of the disposal of a UK property within 60 days of completion even if there is no UK tax to pay.

modellingman

[mc2fool]

Computer (*) says
:
:
source

https://openai.com/blog/chatgpt

And CEO of OpenAI, Sam Altman, says: "ChatGPT is incredibly limited, but good enough at some things to create a misleading impression of greatness. it's a mistake to be relying on it for anything important right now." ... "fun creative inspiration; great! reliance for factual queries; not such a good idea." ... "it does know a lot, but the danger is that it is confident and wrong a significant fraction of the time"

https://twitter.com/sama/status/1601731295792414720?s=20&t=23p6N-FTFaB4rB1HURSJkg

[stevensfo]

Computer (*) says
:
:
source

https://openai.com/blog/chatgpt

And CEO of OpenAI, Sam Altman, says: "ChatGPT is incredibly limited, but good enough at some things to create a misleading impression of greatness. it's a mistake to be relying on it for anything important right now." ... "fun creative inspiration; great! reliance for factual queries; not such a good idea." ... "it does know a lot, but the danger is that it is confident and wrong a significant fraction of the time"

https://twitter.com/sama/status/1601731295792414720?s=20&t=23p6N-FTFaB4rB1HURSJkg

Sounds to me a pretty good description of most humans!

Steve