Mitchells

We are thinking of renting out our house in the UK whilst we move to Perth, does anyone know what the tax implications would be if we then sold the UK house after 2-3yrs having not lived in it for that time.

I know afew people have said before that they have rented out, so any info would be helpful.

Thanks

cypry

You don't pay any CGT on sale of the house until after a 3 yr period, as it was your principal residence.

Hope helps

twhurl

Is that providing you don't buy a house in Austrlia before you sell UK one ?

Thanks

Funky Monkey

Hi.
We are going to do the same and would also like the answer. I am lead to believe you have to pay tax in Australia on any rent from the U.K (not entirely sure about this though).

h2oskineil

Hi
We have rented out our house.

You will be able to earn your UK tax allowance, before you pay any tax on the profits. I believe it's around £4000 for a married man and if the house is in joint names, you can combine the allowance.
All costs can be off set against your tax, so any repairs/maintainance, mortgage interest etc can be used.

We have taken out 'Rent insurance' to cover the rent should the tenant not be able to pay. Even the very best tenant could become ill or loose their job. We used www.letsure.co.uk and took out the Rentsure Silver Policy It cost about £300 per year, but we get £650 per month in rent and so felt it was a reasonable cost. The policy will pay your rent until you get vacant possesion and will pay 100% up to £5000 per month.

Get a good agent to look after the property, in our opinion it is well worth the small amount each month it will cost.
Also we took out British Gas Homecare 400 cover which is £23.25 per month. I there is a problem with the central heating, plumbing, drains or electric they will come out and sort the problem (for free). We just had the central heating control timer replaced the hot water tank was changed last year.... well worth the monthly fee! https://www.britishgas.biz/boiler_br...arerange.aspx?

Neil.

Mitchells

I'd heard that you pay tax on any monies left after your mortgage had been paid ie. Rent £ 900 Mort £ 700 pay tax on £ 200. Don't know if this is correct. Maybe I should talk to a financial adviser.

Funky Monkey

Yes I think I need to.

I am more concerned over selling the house and getting hammered should that be the case.
Will try to find out and let you know - cheers

cypry

You will pay tax on any earnings from rental income as you suggested above. My advice is to keep these affairs in the UK and pay tax in the UK on this property and any money made. Keep receipts for anything and everything. If you buy a house here in Oz when u arrive then one of your houses is considered an investment and is open to CGT (if u divulge ) Get yourself a good accountant he'll be able to sort u out UK side, but things work differently out here so u may need to speak to another over here. CLEVER ACCOUNTING is what you need