Can anybody advise if you are liable for capital gains tax for second property or business sold in UK if you have moved to Oz. :help:
Also can anyone reccomend a good tax accountant in Adelaide who could help with this problem. :sign03: :help: :sign03:

I think that there are some sort of tax implications if you bring the funds over after you've been here 6 months or longer but your best bet would be to try someone like dougie - he's here in adelaide and is an accountant.

I know Australia has a reciprocal agreement with the US regarding CGT issues, not sure if the same applies with the UK but as Sally has said Dougie or a tax specialist will be your best bet for accurate advice.

Jet :)

Can you tell me where to find Dougie

Try an email to www.southerntaxationservices.com.au Dougies business, or you could PM him via this site, check the members list for his username Dougie.

Jet :)

Hi Butcher-Boy

I tried to respond to your email but it could not be delivered - perhaps you have changed it?

Generally, CGT will not be an issue if the property is your main residence in the UK. CGT will most likely be imposed if the property is for investment purposes.

Australian residents are liable to gains on property both in Australia and overseas, however, in your situation, CGT will be applicable from the date of becoming an Australian resident with any property cost base being the market value at that time.

The sale of the business will generally be subject to CGT, and there are a number of issues that should be addressed prior to leaving the UK, particularly with the valuation.

I would advise obtaining values for any buildings (either by a qualified valuer or a method deemed appropriate by the ATO), and a depreciation schedule for any plant and equipment (including motor vehicles).

Goodwill should also have to be revalued, or if not already recognised should be brought in. Provided you have historical data (ie P&L's), I would be able to this for you.

Contact me if you require any more info - however, as stated, I was unable to reply to the email generated from Adbrits.

Cheers

Assuming you were/are domiciled in the UK, you are outside the scope of capital gains tax in the UK:

- once you have ceased to be tax resident and ordinarily resident in the UK, and
- if the disposal of a chargeable asset (such as real estate or shares in a business) takes place in a UK tax year in which you are NEVER resident and NEVER ordinarily resident

so long as you don't return to the UK within five complete tax years of your original departure. If you do return to the UK within that timeframe you could find that the capital gain becomes assessable in the tax year of your return.

You also have to consider capital gains tax in Australia, which is usually computed with reference to the value of your CGT assets on the date you become a tax resident of Australia.

Note that the existence of CGT tapering relief in the UK can remove fairly significant amounts of capital gains from the charge to tax, as can the Australian tax treatment of re-basing CGT assets to their value on the date you become a tax resident.

The free tax factsheets here might also help:
http://www.collettandco.com/factsheet.cfm

Hope that helps for starters.

Best regards.