I am currently debating wether to to sell or rent my house before moving to Oz. I have lived here for 7 years and so I've accumulated a considerable amount of equity.

If I rent my house out for a couple of years and then sell it, would I be liable to pay CGT on the equity? Or would I only pay tax on any equity gained during the rental period?

Any advice would be greatly appreciated.

You do not pay any tax on the property at all providing you sell it within 6 (?) years of leaving as it is considered as your private residence. Search for other posts on this subject - there are a number.

If you are coming to Oz as a PR then you will have to declare any profit from rental income in the UK and in Oz. Even if your rental income in the UK is less than your personal allowance, you will still end up paying tax on it here in Oz. If you are coming on a 457 visa then you will be exempt from declaring foreign source income.

Thanks forthe advice.
I'm coming to Australia on a spouse visa, so I'll only have temporary residence status for a couple of years. Is my foreign source income still taxable during this period

Not sure - trying searching on here - I am sure there is a link to a fact sheet somewhere which outlines the new tax laws that came in this year.

Give nteh date of this post, your question probably is answered, but for future reference the rules state that basically you can do whatever you want with your house for 36months after vacating and still not pay CGT as long it remains your nominated sole residence. Always best to ask the IR tho as I am not a tax expert! Helpline number is below:

Kirk

HMRC Residency Helplines

A first point of contact for all persons not resident in the United Kingdom, but have income from a source in the United Kingdom or pay UK National Insurance Contributions, or both.

For Income Tax/Capital Gains Tax enquiries for customers who are living/going to live abroad only the phone lines are open (UK local time), Monday to Friday, 7.30am to 5:00pm.

From the UK

Telephone: 0845 070 0040

Fax: 0151 472 6067

From outside the UK Dial international code then;

Telephone: 44 151 210 2222

Fax: 44 0151 472 6067

Don't forget to consider the Australian tax position as well ...

Best regards.

PS. With all due respect to the UK Revenue, they are certainly not always correct in their comments (I could regale you with a tale or two!), and I'd not be relying on their help lines for advice.

I just plain don't trust them - period!

Gill

I couldn't agree more!! Best bet is to talk to someone like Alan!

Kirk