'Transfer' of Capital Loss Out of UK

by **Tom1979** on Mon Aug 15, 2011 7:23 pm

Dear All,

I am set to make a possible capital loss of approx GBP 30,000 if I sell a property.

Do you know if it is possible to 'transfer' a capital loss abroad? (eg to Australia or NZ?)
I've read on the internet that in the USA you can offset a capital loss against future income tax.
Do you know of any countries where you can 'import' a capital loss from abroad and then use it to offset income tax in that country?
My profession (medicine) makes me much more prone to income tax than capital gains tax. However, I am in a position where I can find work in many English speaking countries (apart from the USA). I'm also keen to work abroad even if the pay is lower than in the UK.
Totally new to this subject.
Any suggestions gratefully received.

Tom

by **taxationuk** on Mon Aug 15, 2011 7:50 pm

Hi Tom

It is not possible to transfer a capital loss across border unless it is within a Corporation Group Structure.

There are some countries, however, which have no CGT laws, and as such any gains you make there would be tax free in the future, should you be resident there.

If you are considering moving to Australia and you have assets in the UK, you would need to look at Tax planning opportunities before you go.

Kind regards

Terry Hodge
th@taxationuk.com

by **Tom1979** on Tue Aug 16, 2011 7:23 pm

Terry,

Thanks very much for your reply.
It sounds like I may be better off keeping some assets in the UK.
I'm assuming that if I made a gain on a UK asset whilst living in Australia, then I would be liable for CGT by either the HMRC or the Australian Tax Office.
I'm also assuming that HMRC would make no distinction between property or stocks and shares.

Tom

by **Tom1979** on Tue Aug 16, 2011 8:24 pm

If I moved to Australia, became resident there, then sold the UK property at a loss - could I then register that capital loss in Australia? I've looked on the ATO website and there doesn't seem to be any reason why not.
I'm guessing the downside would be that sterling is weak at the moment, so my loss would count for less in Aus Dollars.

Tom

by **Alan Collett** on Tue Oct 25, 2011 5:40 pm

When you commence tax residency in Australia investment assets have a cost base for CGT purposes equal to their value on that date.

Thus capital losses and gains arising prior to tax residence in Australia are ignored in the Australian tax context.

Best regards.