JimandBarbinAus

what do you think?

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    Hi, moving to oz permanently in few months and in the process of arranging to rent out our uk home as have been unable to sell :( so reluctant landlords we become, just wondering does anyone have any ideas re: tax implications on rental income from uk home.

     

    I understand we are still entitled to uk personal allowance (7k) our rental income will be below this after we have deducted allowable expenses, so no uk tax implications, do we have to declare this to oz authorities still even if rental income falls within uk allowance? Thoughts greatly appreciated - Laura.

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    Guest kfoley0681

    if you are permanat and have kids etc and intend to claim centrelink you definatly do as it states this on the form a question have you any oversea income?!

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    Hi Andrew, thanks! we always liken ourself to jim and barb in royle family as a couple!! we will be permanent residents, can we have a personal allowance in uk and australia which uk does not affect ozzy tax rules? Thanks - Laura.

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    Hi Andrew, thanks! we always liken ourself to jim and barb in royle family as a couple!! we will be permanent residents, can we have a personal allowance in uk and australia which uk does not affect ozzy tax rules? Thanks - Laura.

     

     

    Hi Laura

     

    Permanent residents will generally have to declare their worldwide income in Australia.

     

    Therefore rental income from the UK will have to be declared annually along with any other income you have i.e employment, interest from savings/investments etc.

     

    Like the UK allowable expenses are deducted, i.e interest costs from investment borrowings, management fees etc, this results in the taxable income amount. Then any eligible tax offsets are factored in leaving the total tax liability.

     

    As Australia has a dual tax agreement in place with the UK generally you will receive a tax credit for tax paid in the UK.

     

    The financial year runs from July 1 to June 30 here and most people use an Accountant to lodge their tax returns (a tax return is necessary if you receive assessable income, which includes pay from employment). Take details of your income, expenses and tax paid (if any) along with you to the Accountant.

     

    There is the equivalent to a personal allowance in Australia, below are the current rates:

     

    Personal tax rates

     

    Tax rates for the 20010/11 financial year are as follows

     

    $0 to $6,000 = 0%

     

    $6,001 to $37,000 =15%

     

    $37,001 to $80,000 = 30%

     

    $80,001 to $180,000 = 37%

     

    over $180,000 = 45%

     

     

    The above tables do not include Medicare, this can add 1.5-2.5% on a yearly basis, depending upon income levels.

     

    Hope this helps.

     

    Regards

     

     

    Andy

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    Guest WhatNow?

    Andrew - I have a couple of supplementary questions, being in the same position as Laura...

     

    "Permanent residents will generally have to declare their worldwide income in Australia.

     

    Therefore rental income from the UK will have to be declared annually along with any other income you have i.e employment, interest from savings/investments etc."

     

    Is there a form or a standard letter we have to send to HMCR to make them understand we are no longer resident in the UK for tax purposes? I have just started receiving rental on a property in the Uk and have been here as a permanent resident for over 2 years so that is my only income in the UK since I left.

     

    Having told them this, will they then not continue to insist I complete a UK tax return?

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    Andrew - I have a couple of supplementary questions, being in the same position as Laura...

     

    "Permanent residents will generally have to declare their worldwide income in Australia.

     

    Therefore rental income from the UK will have to be declared annually along with any other income you have i.e employment, interest from savings/investments etc."

     

    Is there a form or a standard letter we have to send to HMCR to make them understand we are no longer resident in the UK for tax purposes? I have just started receiving rental on a property in the Uk and have been here as a permanent resident for over 2 years so that is my only income in the UK since I left.

     

    Having told them this, will they then not continue to insist I complete a UK tax return?

     

     

    I am sure Andrew will tell you but yes you have to submit a UK tax return whilst recieving income in the UK!

    We filled in a form can't remember the name but this link should help

     

    http://www.hmrc.gov.uk/cnr/nr_landlords.htm

     

    Your agent will give you a reference number which ties it all together, if it's not let through an agent you can still do this privately.

     

    Hope that helps

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    I am sure Andrew will tell you but yes you have to submit a UK tax return whilst recieving income in the UK!

    We filled in a form can't remember the name but this link should help

     

    http://www.hmrc.gov.uk/cnr/nr_landlords.htm

     

    Your agent will give you a reference number which ties it all together, if it's not let through an agent you can still do this privately.

     

    Hope that helps

     

     

    Yep, Riponian has covered your question, there is a short form tax return that the Inland Revenue sometimes send out, only around 3 pages.

     

    If they are not sending you that one, you might want to contact them and see if you can start using it (Form SA200 I think).

     

    Regards

     

    Andy

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