Grayling

Thanks.....I just looked it up on the DIAC website.

G

Mrs Jackaroo

There was very little profit in our UK house rental - we completed all the relevant forms for Inland Revenue and were declared Tax Exempt because it didnt reach the threshold I would expect you to be the same.

Cant help with the Aussie side of things sorry

Mrs Kiwi

Thanks guys, I really appreciate your help & am over the moon as it sounds like we are likely to be tax exempt - however still not looking forward to filling in that tax return every year.
One last question (I promise!) how do you fill in a UK tax return from Oz? Will the Inland Revenue send it to your Oz address or can you do it on line?
Many thanks x

adamlt1972

You can do both, online or they can forward you a copy by post. Personally I found it better to get one posted, that way you can be sure you've got all the correct bits of the form included.
But you'll need to stay in touch with the Non-Residents centre so they know your new address.

Mrs Jackaroo

We dont fill one out - we're tax exempt and they havent asked for anything more from us. Obviously if circumstances changed, and we started getting a lot more rent, then we would, but as it is we dont. Its not that we havent been in touch with the Inland Revenue over the years, and are trying to hide from them either. We've spoken to them a number of times and they've never yelled for any tax return from us

MartinLuther

As I said earlier on the tax forms "You may or may not have to fill in a tax return. They will decide (and don't expect them to be consistent)...".

Whether you have to fill in a form or not is a bit random. I have some UK bank interest (about £1000 a year) which is way below my tax threshold and they still insist that I fill in the forms every year. I have asked for them to stop a couple of times but they keep saying (incorrectly) that anyone who earns money in the UK must fill in the tax form.

Mrs Kiwi

I rang the centre for non residents to ask them a couple of other questions and thank god I did cos the NRL1 form my estate agent(management agent) had given me was 2 years old and had the wrong address on it - the lady at the centre for non residents said they hadn't been at that address for 2 years! No wonder I thought the form was a bit vague - apparently on the correct form there is a place to list all your deductions (eg, mortgage, agents fees etc.) so they can see how much profit is being made from renting the house out.
On the form I had it had no place to list these kind of deductions.

Thanks to that phone call and of course you guys being so helpful as always, I feel fully clued up on all the tax aspects of renting my house out.

Also, I'm sure you all already know, the lady told me about form P85 which you fill out when you leave work and get your P45 - that tells you if you are entitled to a tax rebate! You never know.......

Thanks again guys, you couldn't have been more helpful. XX

jollyswagman

Hi, what if you own your house out right and rent it when you go, would i be looking a quite a bit of tax? I also noticed that someone mentioned his personal tax threshold, do you have to pay tax on any interest from isa's and other savings accounts??
You guys seem to know your stuff and i am wondering if you could advise a company who could see me in person to discuss my optons?
Am i liable for tax in u.k and Oz on investments?
Any help or advice appreciated.

adamlt1972

You'd certainly be more likely to be liable to pay tax if you owned the house outright, as you wouldn't be able to write off the interest paid on the mortgage. Not sure of your circumstances, and you'd be best seeing an accountant but you may need to look at other ways to avoid tax.
ISAs should be tax free, although you'll need to check on if any change in residency status affects their valildity (or maybe someone else on here can advise).
You can still your normal TFA.

jollyswagman

Hi, thanks for your reply, i have applied for 175 visa we have an accountant for our business here but doubt very much he will be able to advise on if it is best to take money or leave it. I think we should sell the house but oh has some valid points to rent it out!! I guess i need some concrete advise in black and white! I think with the exchange rate we could potentially lose a lot of money?
Someone mentioned Alan Collet as an advisor, is he available just for financial advice?

adamlt1972

There are threads elsewhere on here in relation to the exchange rate, but with Aussie interest rates seemingly getting set to fall, and the Uk's potentially having to remain at existing levels (if not increaseing) to tackle inflation, then the recent drop in the Aus$ may continue for a bit longer yet. This would make it worth hanging onto your pounds a little longer.

MartinLuther

If you're on a PR then the income on your worldly goods is subject to Aussie tax.

With the house. You can get taxed by the UK first if you make enough to pass your personal limit. You also get taxed by Aussie but are given credit for any tax you've already paid to the UK.

With the ISAs you don't get taxed by the UK but is subject to Aussie tax. Aus does not recongise international tax avoidance schemes. As you won't have paid any tax to the UK it will all go to Aus.

Alan Collett

Re taxation, feel able to request tax factsheets here:
http://www.collettandco.com/factsheet.cfm

Best regards.

robert0

hi,very good info,sorry for jumping in,
i to am in the same situation.
wouldit be possible to send me the excel,as i plan to come out a.s.a.p
many regards rob

jollyswagman

Some very good points made, Thank you for the useful info, i have emailed Go Matilda and will be seeking professional advice as i don't think i can afford not to!!