# Capital Gains Tax Moving to Australia from the UK



## LondonAussie (Mar 6, 2018)

Hi,

I have a questions about capital gains tax on assets when moving country - specifically from the UK to AU

According to the ATO site below when someone becomes a resident of Australia:



> When you become an Australian resident (other than a temporary resident), you're taken to have acquired certain assets at the time you became a resident for their market value at that time.


_ATO site - International-issues/Changing-residency_

Does this mean for e.g.


 Shares are acquired in the UK in 2010 for 10K (non Australian shares)
 Said shares in 2018 are worth 30K
 If sold in the UK then CGT would be paid on the 20K gain.
 If instead you become a resident in AU (in 2018) then the shares are considered to be acquired at their market value at the time i.e. 30K in 2018 - Thus if the shares are then sold in later in 2018 the CGT paid (in AU) is for the gain on 30K not the original 10K in 2010

Am I interpreting this correctly?

Also assume there is no return to the UK as I believe they will claim the CGT for upto 5 years if residency in the UK resumes.

Thanks in advance.


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## Moulard (Feb 3, 2017)

I believe what they are saying is that for the purpose of levying capital gains tax it is the market value of those assets when you became a tax resident of Oz that is used for the determination of capital gain.

ie. any gains before you became a tax resident of Australia is not considered part of the capital gain for Australian tax purposes.

Worth 10k when you purchase it as a non-resident
Worth 20k when you become an Australian resident
Worth 30k when you sell it as an Australian resident

then CGT would be payable on 10k, not 20k.


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## LondonAussie (Mar 6, 2018)

Thanks that's correct that is what I meant to say.

Thanks for confirming.


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