Pheobe

We are hoping to emigrate in the next few months. Thought it best to rent out our property till we have decided Melbourne is the place for us. We have since heard about the tax side of this. Is it worth us renting or are we going to get slammed for tax in the UK and OZ.
I won't be working, could I possibly put the UK house in my name for rent purposes and have it put in an account in my name. I know I would still have to declare this in OZ but it would hopefully stop hubbie going into a higher tax bracket with him working in Melbourne. Is this right? Any advice would be greatly appreciated. This whole tax thing is a bit of a nightmare at the moment That and waiting for police checks (seem to be taking forever) Talk about stress or what!!

Thanks for any help

CHnJ

Noone else has picked this up, so I'll give a quick and underinformed reply here.

"Putting the house in hubby's name" is actually a transfer in the same way that a sale would be, so it would cost you more in fees and stamp duty than you'd save in tax I think. IIRC both the UK and Aus operate under the idea that marital assets are shared anyway regardless of whoever "owns" them. You should be covered under the double-taxation rules to an extent and you may be able to use your UK allowances too.

Go look at gomatilda.com as a lot of this is covered there.

(I'm not a lawyer or an accountant, so please feel free to amend what I've said here.)

Terry

Hi Pheobe,

This is the way I see it.... The Uk. tax would not be high if any due to personal allowances, the Oz tax would depend on how much income you earn, the rates start from 17% and go up to 48%.
You can get a general idea by looking at the inland revenue site (there are quite a few leaflets regarding letting) and the ATO.


Terry

Pheobe

Thanks for your replies I'll try go matilda and see what I can come up with.
Thanks again