Sears Family

Tax and rent on property in uk

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    Hi we are in the early stages and were hoping to keep our

    house in the uk by renting it out. How much tax (%)will I pay on this?

    We will not be making much but enough to cover mortgage and agent fees so if we get taxed on top is it worth the headache?

    Also if we end up selling once we have moved how much tax (%)will be taken from our equity?!?!

     

    Any advice most welcome.

    Cheers

    von

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    You won't pay tax if your out the country, we've got ours rented and we're here, there's a few forms to fill out, think we'll have to still do a tax return but they've told us we're tax exempt, if you do the renting through an agent they should roughly point you in the right direction.

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    Hi we are in the early stages and were hoping to keep our

    house in the uk by renting it out. How much tax (%)will I pay on this?

    We will not be making much but enough to cover mortgage and agent fees so if we get taxed on top is it worth the headache?

    Also if we end up selling once we have moved how much tax (%)will be taken from our equity?!?!

     

    Any advice most welcome.

    Cheers

    von

     

     

    Hi Von

     

     

    What visa will you be coming to Adelaide on?

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    Hi Von

     

    Not being a visa expert I think the 176 is permanent resident one?

     

    Therefore a permanent resident will be taxed on the profit made not the whole rent. Any profit will be calculated as rental income less allowable deductions ie mortgage interest costs, management/agents fees etc.

     

    With regards to tax on capital gains when a property is sold, that will depend on a wide number of factors and there are also many potential exemptions available.

     

    However if tax is payable in Australia it would be calculated by adding the assessable profit/gains to the income derived in that financial year and therefore payable at the marginal tax rate.

     

    Tax may also be payable to the UK on profits however British Citizens still qualify for the tax free thresholds. If tax is still payable as the profit is above the UK thresholds then a tax credit may be applied in Australia.

     

    If someone is keeping a UK property then it would be wise to seek professional tax advice prior to selling from a Tax specialist who is qualified in tax systems for both Countries so as to plan for the optimal time to sell from a tax perspective.

     

     

    Regards

     

     

    Andy

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    Thank you very much! This makes for an easy decision

    gives me a nice warm feeling knowing i dont have to worry about selling and can keep a foot in the UK just in case  and have it as an investment !

    thank you again I'm sure we'll be in touch along the journey 

    kind regards

    Von

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