tax Q, on house rented in UK
Jul 20th 2010, 3:53 am
#1
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Thread Starter
Joined: Jun 2006
Location: Phillip Island, VIC
Posts: 259
tax Q, on house rented in UK
Hi i'm sure many are in the same boat. Just doing my tax return for our house rented out in the UK. Does anyone know, how much tax you pay on your profit and if you get a certain amount of earnings tax free?
Thank you in advance
Thank you in advance
Jul 20th 2010, 4:43 am
#2
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Joined: Jan 2008
Location: South Coast, NSW
Posts: 3,625
Re: tax Q, on house rented in UK
Are you PR, Citizen or Temp?
Jul 22nd 2010, 4:26 am
#3
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Joined: Jan 2010
Posts: 440
Re: tax Q, on house rented in UK
I've just done mine.
I'm assuming you are doing Aus return.
The difference between your rental income and all the allowable expenses (of which there are many) counts as income (what you called "profit", I think).
Check NAT 1729 on the ATO website for more details. In my case I could claim enough to show a loss.
The tax-free allowance is $6,000, I think? Others will correct me if I am wrong there.
If you use e-tax it is all visible and you can see straight away if you are liable for any tax. It is a bit daunting the first time, but after that I've found it gets easier.
And if you make a "genuine" mistake (rather than a deliberate msitake to avoid tax) the ATO won't hold it against you.
Good luck!
I'm assuming you are doing Aus return.
The difference between your rental income and all the allowable expenses (of which there are many) counts as income (what you called "profit", I think).
Check NAT 1729 on the ATO website for more details. In my case I could claim enough to show a loss.
The tax-free allowance is $6,000, I think? Others will correct me if I am wrong there.
If you use e-tax it is all visible and you can see straight away if you are liable for any tax. It is a bit daunting the first time, but after that I've found it gets easier.
And if you make a "genuine" mistake (rather than a deliberate msitake to avoid tax) the ATO won't hold it against you.
Good luck!
Jul 22nd 2010, 4:43 am
#4
You call that a moustache
Joined: Sep 2006
Location: Heading West..
Posts: 2,060
Re: tax Q, on house rented in UK
I've just done mine.
I'm assuming you are doing Aus return.
The difference between your rental income and all the allowable expenses (of which there are many) counts as income (what you called "profit", I think).
Check NAT 1729 on the ATO website for more details. In my case I could claim enough to show a loss.
The tax-free allowance is $6,000, I think? Others will correct me if I am wrong there.
If you use e-tax it is all visible and you can see straight away if you are liable for any tax. It is a bit daunting the first time, but after that I've found it gets easier.
And if you make a "genuine" mistake (rather than a deliberate msitake to avoid tax) the ATO won't hold it against you.
Good luck!
I'm assuming you are doing Aus return.
The difference between your rental income and all the allowable expenses (of which there are many) counts as income (what you called "profit", I think).
Check NAT 1729 on the ATO website for more details. In my case I could claim enough to show a loss.
The tax-free allowance is $6,000, I think? Others will correct me if I am wrong there.
If you use e-tax it is all visible and you can see straight away if you are liable for any tax. It is a bit daunting the first time, but after that I've found it gets easier.
And if you make a "genuine" mistake (rather than a deliberate msitake to avoid tax) the ATO won't hold it against you.
Good luck!
http://www.ato.gov.au/content/downlo...1N17290610.pdf
Last edited by ex_exile; Jul 22nd 2010 at 4:48 am.
Jul 22nd 2010, 9:41 pm
#5
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Joined: Aug 2008
Posts: 22,348
Re: tax Q, on house rented in UK
I'll be letting out my UK house when I leave. I'm looking at getting some work carried out on the house to make it more "tenant ready". Perhaps a stupid question but suppose I get the work done now while I'm still living in the house (and will be until end Oct). Will I be able to offset the costs against the taxable income that'll kick in (hopefully) from November?
Jul 23rd 2010, 3:01 am
#6
You call that a moustache
Joined: Sep 2006
Location: Heading West..
Posts: 2,060
Re: tax Q, on house rented in UK
I'll be letting out my UK house when I leave. I'm looking at getting some work carried out on the house to make it more "tenant ready". Perhaps a stupid question but suppose I get the work done now while I'm still living in the house (and will be until end Oct). Will I be able to offset the costs against the taxable income that'll kick in (hopefully) from November?
As I understand it you can only claim expenses if your property is "availible to rent" so costs involved in getting it ready to rent fall outside of this. If you did the work once you had rented the property you may be ok but the most improvements get classified as capital works and need to be depreciated over time.
There is a complicated CGT / capital works thing that allows you to claim un depreciated costs once you sell the property but you would need a tax agent to work through that.
Jul 23rd 2010, 4:48 am
#7
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Joined: Aug 2008
Posts: 22,348
Re: tax Q, on house rented in UK
No
As I understand it you can only claim expenses if your property is "availible to rent" so costs involved in getting it ready to rent fall outside of this. If you did the work once you had rented the property you may be ok but the most improvements get classified as capital works and need to be depreciated over time.
There is a complicated CGT / capital works thing that allows you to claim un depreciated costs once you sell the property but you would need a tax agent to work through that.
As I understand it you can only claim expenses if your property is "availible to rent" so costs involved in getting it ready to rent fall outside of this. If you did the work once you had rented the property you may be ok but the most improvements get classified as capital works and need to be depreciated over time.
There is a complicated CGT / capital works thing that allows you to claim un depreciated costs once you sell the property but you would need a tax agent to work through that.
