Heavy Taxes if you Rent out Propery in the UK
May 17th 2008, 10:05 am
#1
Just Joined
Thread Starter
Joined: Nov 2007
Posts: 22
Heavy Taxes if you Rent out Propery in the UK
Hi Guys
Can somebody please advise me we are certainly going to consider renting out our property now when we move out to Oz due to the housing market etc.
Something was said in a previous thread that heavy taxes are placed on you when you move out to Oz whilst renting a property in the UK. Can someone please advise me as to how much and is there anyway round this please?
Kind regards
Debbie
Can somebody please advise me we are certainly going to consider renting out our property now when we move out to Oz due to the housing market etc.
Something was said in a previous thread that heavy taxes are placed on you when you move out to Oz whilst renting a property in the UK. Can someone please advise me as to how much and is there anyway round this please?
Kind regards
Debbie
May 17th 2008, 10:07 am
#2
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Heavy Taxes if you Rent out Propery in the UK
Hi Guys
Can somebody please advise me we are certainly going to consider renting out our property now when we move out to Oz due to the housing market etc.
Something was said in a previous thread that heavy taxes are placed on you when you move out to Oz whilst renting a property in the UK. Can someone please advise me as to how much and is there anyway round this please?
Kind regards
Debbie
Can somebody please advise me we are certainly going to consider renting out our property now when we move out to Oz due to the housing market etc.
Something was said in a previous thread that heavy taxes are placed on you when you move out to Oz whilst renting a property in the UK. Can someone please advise me as to how much and is there anyway round this please?
Kind regards
Debbie
There may be ways to offset some of the costs involved.
May 19th 2008, 12:39 am
#3
Forum Regular
Joined: Oct 2007
Location: Melbourne
Posts: 101
Re: Heavy Taxes if you Rent out Propery in the UK
Hi there,
If you're going to be non resident for tax purposes in the UK, ie out of the country for more than 1 tax year, you can apply for non resident landlord status which means rental income is not taxed. Your letting agent will give you the paperwork or you can download it yourself from the Revenue and Customs website. Make sure that you have the approval in place before you actually rent out as it can be a bit of a pain to get the money back if it's taken mistakenly by the agent.
Also, consider doing a P85 if you leave mid way through a UK tax year as you may be entitled to an income tax refund. Again, you can download the form from the website.
The situation may change depending on whether you rent or buy in Australia but I'm sure that I read somewhere that if you're making a loss on your UK rental (eg having to top up the rent to cover the mortgage), that can be offset agaist your Aussie tax. Presumably you would have to claim it back via an Aussie tax return after the event.
HTH,
Edna
If you're going to be non resident for tax purposes in the UK, ie out of the country for more than 1 tax year, you can apply for non resident landlord status which means rental income is not taxed. Your letting agent will give you the paperwork or you can download it yourself from the Revenue and Customs website. Make sure that you have the approval in place before you actually rent out as it can be a bit of a pain to get the money back if it's taken mistakenly by the agent.
Also, consider doing a P85 if you leave mid way through a UK tax year as you may be entitled to an income tax refund. Again, you can download the form from the website.
The situation may change depending on whether you rent or buy in Australia but I'm sure that I read somewhere that if you're making a loss on your UK rental (eg having to top up the rent to cover the mortgage), that can be offset agaist your Aussie tax. Presumably you would have to claim it back via an Aussie tax return after the event.
HTH,
Edna
May 19th 2008, 1:47 am
#4
Social Grenade Thrower
Joined: Jan 2008
Location: South Coast, NSW
Posts: 3,625
Re: Heavy Taxes if you Rent out Propery in the UK
Hi there,
If you're going to be non resident for tax purposes in the UK, ie out of the country for more than 1 tax year, you can apply for non resident landlord status which means rental income is not taxed. Your letting agent will give you the paperwork or you can download it yourself from the Revenue and Customs website. Make sure that you have the approval in place before you actually rent out as it can be a bit of a pain to get the money back if it's taken mistakenly by the agent.
Also, consider doing a P85 if you leave mid way through a UK tax year as you may be entitled to an income tax refund. Again, you can download the form from the website.
The situation may change depending on whether you rent or buy in Australia but I'm sure that I read somewhere that if you're making a loss on your UK rental (eg having to top up the rent to cover the mortgage), that can be offset agaist your Aussie tax. Presumably you would have to claim it back via an Aussie tax return after the event.
HTH,
Edna
If you're going to be non resident for tax purposes in the UK, ie out of the country for more than 1 tax year, you can apply for non resident landlord status which means rental income is not taxed. Your letting agent will give you the paperwork or you can download it yourself from the Revenue and Customs website. Make sure that you have the approval in place before you actually rent out as it can be a bit of a pain to get the money back if it's taken mistakenly by the agent.
Also, consider doing a P85 if you leave mid way through a UK tax year as you may be entitled to an income tax refund. Again, you can download the form from the website.
The situation may change depending on whether you rent or buy in Australia but I'm sure that I read somewhere that if you're making a loss on your UK rental (eg having to top up the rent to cover the mortgage), that can be offset agaist your Aussie tax. Presumably you would have to claim it back via an Aussie tax return after the event.
HTH,
Edna
May 19th 2008, 1:54 am
#5
Retired
Joined: Apr 2004
Posts: 34,649
Re: Heavy Taxes if you Rent out Propery in the UK
Normal taxes, yes.
"Heavy taxes" ... unclear what you mean.
