Realistic Tax Query

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May 26th 2005, 1:12 pm

Malcontent

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Joined: Oct 2004

Location: Gold Coast Queensland Australia

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Realistic Tax Query

I have a mortgaged house in UK rented out at a loss against the income but I cannot redeem the mortgage cause I used it to buy a house in Aus. Any ideas on what to do tax wise.

May 26th 2005, 1:24 pm

bert-doozer

Visa Granted 20 Jan 05

Joined: Sep 2004

Location: UK Now, Melbourne Late Aug

Posts: 163

Re: Realistic Tax Query

Quote:

Originally Posted by Malcontent

I have a mortgaged house in UK rented out at a loss against the income but I cannot redeem the mortgage cause I used it to buy a house in Aus. Any ideas on what to do tax wise.

Get profesional advice!

May 26th 2005, 1:28 pm

kirsty&al

Joined: Feb 2004

Posts: 1,277

Re: Realistic Tax Query

Quote:

Originally Posted by Malcontent

I have a mortgaged house in UK rented out at a loss against the income but I cannot redeem the mortgage cause I used it to buy a house in Aus. Any ideas on what to do tax wise.

If you are making a loss on the UK rental then you wont pay tax in the UK or Oz. You cannot use your loss to offset Oz income (or gains) because it is a foreign property. You can carry over the losses to offset any profits you make on the rental in the future.

Note you may want to apply for exemption from paying tax at source in the UK (re: http://www.hmrc.gov.uk/cnr/odlandlord.htm).

Regards
Alistair