cromergirl

We have been unable to sell our house in the UK so we are going to rent it for at least 12 months.

Does anyone have any experience with this. What are the tax implications as I believe you can fill out a HMRC landlord form telling them you will not be resident in the UK.

Cheers.

CG

Peepster

Hi - yes, you need to fill out an NRL1 form which allows you to receive rental income from your UK property without being taxed y HMRC. You might get taxed on it via the ATO though, depends on the numbers. Have a search through this forum, this one has been covered lots of times

StSabre

The NRL1 form is so that the rental income is not taxed at source - the income is still taxable in the UK and you need to complete a self-assessment form at the end of the tax year.

You also declare the income on your Australian tax return (unless you are on a temporary visa), with any UK tax paid deducted from Aus tax as a tax credit.

paddyo

We have been renting out our UK home for over 5 years now.
The key is to get a really good Property Manager and set up a 'limit' for any ad hoc events (broken light switch/new door/oven broken that sort of thing).
The NRL1 stops you getting taxed at rental source but yes, you still need to declare it as part of an annual self assessment.
If you are a Permanent Resident or a Citizen in Australia then you should make arrangements to include this in your annual ATO assessment, you can claim a tax offset from your rental income and your mortgage INTEREST only, so, if you have a repayment mortgage then you will need to identify how much your interest element is seperate to the rest of your repayment.

h2oskineil

Hi Ya

Some info here.

http://britishexpats.com/forum/showthread.php?t=794537