Hi all,
Have read various posts on this and other forums and I am still confused about permanent residency as far as when you have to register with the ATO.
Our situation is we validated our visas in June 04 and then came back to the U.K. We have now decided to go to OZ permanently December 04. Unfortunatly our house sale fell through at the last momment, we are now faced with moving with reduced funds. We have decided to rentwhen we get to OZ, even though we could still possibly buy a small starter home.

1) Are we correct in thinking that if we did purchase a small home in OZ when our house sold in the U.K would we be charged CGT in OZ or U.K?

2) If we rent when we get to OZ and our house sells whilst we are renting we would not be charged CGT?

3)Are we classed as PR for tax purposes when we validated our visas in June or when we arrive in December 04? Could it be beneficial perhaps to return to the U.K when the exchange rates are improved, stay a while make sure we sell the house then return for good at this latter date with all of our money? Would this then be classed by the ATO as our first date of residency? At what point is the rule for us to register for tax purposes?


Please some one that knows answer if you can as our time for options is running out fast!

Many Thanks David

David

I believe I am correct in saying that any profit from the sale of your UK home is not subject to CGT in UK or in Australia presuming that it was your sole "residence". I may be wrong!

Regarding your other questions, I definitely think you need some professional guidance - houses, tax, financial timings etc are a nightmare in UK let alone in Australia also. I understand, however, that the housing market is stalling over there also - especially in some of the city areas - as well as here so maybe what you "lose on the swings you will gain on the roundabout" as they say.

At least you have been wise to enter Australia in the allotted time to validate your visa so you will not have to go through all that again.

Regards

Jim