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Posted Fri, 19 Aug 2022 15:47:58 GMT by Cam W
Hello. The Australian Tax Office assumes that, upon ceasing to be a tax resident, a person has disposed of any investments at the then-market rate. That means they are liable for tax on any resulting capital gains for the relevant year, but not subsequently. (Note that this is "deemed disposal", rather than an actual sale of the assets.) If the person becomes a UK tax resident at that time, should the basis for UK capital gains tax be calculated as though those same foreign assets (Australian investments) were purchased on the same day for the same price? Thank-you.
Posted Wed, 31 Aug 2022 08:16:19 GMT by HMRC Admin 19
Hi,

Please note that in such scenarios the original acquisition cost, in GBP, at the exchange rate on the date of acquisition, is still used by HMRC to calculate any Capital Gains Tax due. However, you may be able to claim credit for the Australian tax paid. Please refer to the third bullet point in the following guidance:                                       

INTM169040 - UK residents with foreign income or gains: capital gains tax: Gain taxed UK/abroad

Thank you.

 

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