Remortgaging UK property from Aus
#16
Re: Remortgaging UK property from Aus
I was thinking of the situation where you do in fact make a profit to be taxed on. If you make no profit then you can't be taxed.
Particularly sticky issue if in the uk you would have been under their threshold but in AU you are over the one here.
Unfortunately as for the OP if the property has no mortgage it's hard to find enough expenses to avoid profit.
(Still if you pay no tax it means you've made nothing. A % of something is always worth more than all of nothing)
Particularly sticky issue if in the uk you would have been under their threshold but in AU you are over the one here.
Unfortunately as for the OP if the property has no mortgage it's hard to find enough expenses to avoid profit.
(Still if you pay no tax it means you've made nothing. A % of something is always worth more than all of nothing)
#17
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Joined: Oct 2006
Location: Nowhere - I'm a travelling (wo)man!
Posts: 2,362
Re: Remortgaging UK property from Aus
It isn't a grey area. If you are tax resident in Australia, you pay tax on your worldwide income, including any rental profits in the UK.
And you aren't exempt from paying tax in the UK on UK rental profits, no matter where you live. If your UK-source income is below the tax threshold (£7,475 this year from memory), you will have a liability of nil, but that is not the same as being exempt.
And you aren't exempt from paying tax in the UK on UK rental profits, no matter where you live. If your UK-source income is below the tax threshold (£7,475 this year from memory), you will have a liability of nil, but that is not the same as being exempt.
#18
Re: Remortgaging UK property from Aus
ok the point i am trying to make is this -
It's my understanding if you make a small uk profit (ie under the uk allowance) you have no uk liability but that same amount IS liable in AU (assuming you have other AU income that takes you over the AU allowance). Or even that you do pay some tax in the UK but have some of your profit as your tax free personal allowance then you still have to pay tax on ALL of it here.
Many people seem to think that tax free amounts (zero liability) in the UK don't need to be declared here. Now I really hope that I am wrong but ....
It's my understanding if you make a small uk profit (ie under the uk allowance) you have no uk liability but that same amount IS liable in AU (assuming you have other AU income that takes you over the AU allowance). Or even that you do pay some tax in the UK but have some of your profit as your tax free personal allowance then you still have to pay tax on ALL of it here.
Many people seem to think that tax free amounts (zero liability) in the UK don't need to be declared here. Now I really hope that I am wrong but ....
#19
Re: Remortgaging UK property from Aus
We've remortgaged since being in Oz and used http://www.international-mortgage-plans.com/ - very helpful and very efficient
#20
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Joined: Oct 2006
Location: Nowhere - I'm a travelling (wo)man!
Posts: 2,362
Re: Remortgaging UK property from Aus
Safin, you are correct.
#21
Re: Remortgaging UK property from Aus
It isn't a grey area. If you are tax resident in Australia, you pay tax on your worldwide income, including any rental profits in the UK.
And you aren't exempt from paying tax in the UK on UK rental profits, no matter where you live. If your UK-source income is below the tax threshold (£7,475 this year from memory), you will have a liability of nil, but that is not the same as being exempt.
And you aren't exempt from paying tax in the UK on UK rental profits, no matter where you live. If your UK-source income is below the tax threshold (£7,475 this year from memory), you will have a liability of nil, but that is not the same as being exempt.