Archived Discussion Topic

House Rental       started by ds66 on 17 Sep 2011   (23815)
Message InfoMessage
From ds66

17 Sep 2011 6:42 AM
G'day. We are emigrating to Perth in January 2012 and are intending to rent out our house in the UK. We are hoping that some of the rental from the UK rent will help towards a rental in Perth. We are aware that there are tax implications but we are not entirely sure what they are and we need to work out exactly how much tax we will be liable for here and in Australia. We are concerned that it is possible that we might get taxed twice eg money leaving the UK and then when it enters Australia. Does anyone know if this is correct. Is there anyone on Aussiemoves that is renting a house in the UK and living in Australia. Any advice on any of the above would be greatly received. Many thanks.
From meandbee

To ds66

17 Sep 2011 10:39 AM
hi, the uk and Aus have an agreement on taxation. You only pay tax once on that income. So depending upon why is the more favourable to your circumstances pay tax there and then you make a declaration to the other country at tax time and avoid the second tax.
From vpopplewell

To ds66

24 Sep 2011 2:19 PM
Hi Debs My friend ( who is on Aussiemove) has just emigrated a month ago and rented a property in the UK. She is aware of the tax implications. She is Debs1966. I am sure she would be more than happy to help you. Vanessa
From TanyaWhoriskey

To vpopplewell

26 Sep 2011 7:17 PM
Hi Not sure if this will help or not, but I have two properties in the UK. I am in Oz on my husbands 457 VISA and I applied for Non Residental Landlord status in the UK and got it. It means I'm exempt from paying tax on any income from the rentals. I also undertsand that I dont need to decl
From leigh_and_ross

To ds66

28 Sep 2011 10:11 PM
Hi there, The ATO will ask you to report on all income from overseas investments/assets on your annual tax return, and there is an agreement between the UK and Aust to offset tax already paid in the UK. Whilst you won't pay that tax twice, you may have to pay an additional amount depending on your total income. No one can tell you an exact amount, its dependent on income from all sources against allowable deductions. You can find the tax rates on the ATO website, if that helps to give you an idea. Hope this helps This is what it states on the ATO website... Reporting income from overseas property If you have earned income from an overseas property, you must include that income in your assessable income and decl
From TanyaWhoriskey

To leigh_and_ross

29 Sep 2011 12:55 PM
When you say 'earned income', does that mean income that is earned say in the UK and brought across /transferred to Australia? At present, I have income in the UK but the rental money is staying in the UK bank accounts. I am not transferring it to Australia...
From leigh_and_ross

To TanyaWhoriskey

29 Sep 2011 9:45 PM
Hi Tania, As I understand it, all income you receive in the financial year (01 July - 30 June) should be decl