Declairing UK Investment Income in Australian Tax Return
#1
Just Joined
Thread Starter
Joined: Mar 2017
Posts: 2
Declairing UK Investment Income in Australian Tax Return
Hi
I under my aussie accountants adviceI have been declaring my income from UK investments (managed by an investment management company in the UK) in my yearly tax lodgement and the amount of tax I have to pay is killing me! I don't bring the money over it just builds up as an investment. Does anyone else experience this or can over any advice on how I can reduce the bill.
Thanks
I under my aussie accountants adviceI have been declaring my income from UK investments (managed by an investment management company in the UK) in my yearly tax lodgement and the amount of tax I have to pay is killing me! I don't bring the money over it just builds up as an investment. Does anyone else experience this or can over any advice on how I can reduce the bill.
Thanks
#2
Forum Regular
Joined: Nov 2005
Posts: 158
Re: Declairing UK Investment Income in Australian Tax Return
Two things:
1) If you are in Australia as a temporary resident then you will not be liable to Australian tax on your passive eg. investment and rental income overseas, and
2) Even if you are a permanent resident or Oz citizen you will receive a tax offset in relation to tax paid in the UK
If the income is substantial I would suggest more specific tax advice. If 1) applies in your situation, find another accountant and seek to recover any extra tax you have paid.
1) If you are in Australia as a temporary resident then you will not be liable to Australian tax on your passive eg. investment and rental income overseas, and
2) Even if you are a permanent resident or Oz citizen you will receive a tax offset in relation to tax paid in the UK
If the income is substantial I would suggest more specific tax advice. If 1) applies in your situation, find another accountant and seek to recover any extra tax you have paid.
#3
Just Joined
Thread Starter
Joined: Mar 2017
Posts: 2
Re: Declairing UK Investment Income in Australian Tax Return
Thanks for the information. I am a permenant resident. Could you elaborate on the tax off set? Does that come from the UK side of things?
#4
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Re: Declairing UK Investment Income in Australian Tax Return
You input your foreign earning here and further on down O Foreign income tax offset is where you put the figure for UK income tax paid.
#5
Re: Declairing UK Investment Income in Australian Tax Return
Sophie - if you also pay tax in the UK on your investment income, then I think you need a new accountant. He/she should be aware of the double taxation agreement between the UK and Australia https://www.gov.uk/tax-uk-income-liv...ad/taxed-twice