Hi. You might like to have a look at http://www.inlandrevenue.gov.uk and follow the links to Capital Gains. Unless the property is used as your only home, you will most likely incur capital gains in the UK payable to the UK authorities. The website is quite helpful as a starting point but the laws are quite complex, as different scales of relief are available. I remember having to study loads of rules as part of my UK accountancy qualification, made for a lot of late night cramming!

Not sure what happens when you return to Australia, but many countries have negotiated tax treaties between themselves. This means if you incur CGT in one country, you don’t then get fully taxed in the second country on the taxed monies repatriated from the first. Suggest you seek specialist Tax/Accountancy advice in the UK.[] Good luck.

Vicki