Capital gains tax on overseas property when residing in 3rd county

T

tex

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Hi,
I am in a strange situation where i bought us property in 2006 while living and paying tax as an Australian tax resident.
I am now living and paying income tax in the UK as a resident in the UK.
The property has devalued and I am now at a point where I am looking to sell it.
My question is if I sell my US property now, as a UK tax resident, having purchased it while living and paying taxes in Australia, can I claim the capital loss against future capital gains? If so which country would the future capital gains be offset in?

Your help would be much appreciated.
Tex
 
Did you declare the acquisition on your tax return in Australia in 2006, in Ireland you would have had to.

I cannot see how you could possibly claim reliefs in the UK on that transaction.
 
The answer to this is either very complex or very simple.

I imagine only two tax jurisdictions come into play. The US where the property is based, and then the UK. This would be double taxation treaties and don't think anyone on AAM would be able to answer this. You should try the question on the equivalent of the AAM in the UK and USA.
 
If you are ordinarily resident in the UK when you come to dispose of the USA property, I think the answer to your question will be found in the taxation treaty between the UK and USA. You can search for this on line.

I am not familiar with that particular treaty except to say that the usual handling of Capital Gains Tax issues in double taxation treaties, provides that the gain is taxed in the country where the property is located.

That would seem to suggest that any capital losses that might be allowable against future gains will be allowed according to the USA capital gains rules
and if allowed, will relate to gains in the USA only
 
If you are ordinarily resident in the UK when you come to dispose of the USA property, I think the answer to your question will be found in the taxation treaty between the UK and USA. You can search for this on line.

I am not familiar with that particular treaty except to say that the usual
handling of Capital Gains Tax issues in double taxation treaties, normally provides that the gain is taxed in the country where the property is located.

That would seem to suggest that any capital losses that might be allowable against future gains will be allowed according to the USA capital gains rules and if allowed, will relate to gains in the USA only
 
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