Australian resident selling UK property

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    Australian resident selling UK property

    My husband has a property in the UK ( we live in Australia) that belonged to his mother until she passed away nearly 3 years ago. The property is presently tenanted. We are considering selling the property in the next 12 months because it is becoming difficult to manage from overseas. However we have been told by a family member that we will need to reside in the house for at least 3 months for tax reasons ( CGT ?...not sure). We are not experienced in owning property beyond our own home, so would appreciate it if someone could shed some light on this for us- especially in regards to tax and legal implications. Thankyou

    #2
    That would only be required if you had owned the house for donkey's years, and it had gone up in value a great deal. (Probably HMRC would see through that particular ruse anyway.)

    You don't pay CGT on the last three years of ownership, so I think you should be okay.
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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      #3
      You are not UK resident so UK CGT does not apply. However you will be liable for tax in Australia of the disposal of a world wide asset. You will need to estatblish the open market value at the DOD. This may be the probate value. Depending where the property is there may in fact be no gain in vlaue over the 3 years. Regards Peter

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        #4
        Your husband should be registered with HMRC as a "non-resident landlord" and submitting an annual tax reurn on the profit arising from the letting income. He should be able to claim a personal allowance and so probably has no UK tax to pay but he may be required to pay to Oz tax office.

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