I have lived and worked in Australia since April 2009 and have been a permanent resident since October 2010. I have always rented in Australia. I have a house in the UK that I have rented out since January 2004 and am considering selling it. Please can you clarify the UK and Australian tax implications?

Arthur Weller replies:

On the assumption you have been non-UK resident since April 2009, you are not liable to any UK CGT if you sell now. If you continue to be non-UK resident so that from April 2009 you will have been non-UK resident for five full consecutive tax years, then even if you subsequently (i.e. after the five years) return to live in the UK, you will have no UK tax liability. You will need to check with an Australian accountant but it is quite possible that when you became Australian resident you were deemed to acquire your UK property at its market value at that time. This set the base cost of the property, which is used in Australian capital gains tax calculations. Furthermore there may be a 50% discount of Australian capital gains on assets held for more than a year; and also an exemption from Australian capital gains tax for the disposal of the main residence.