plantpot

If I own a Uk property in UK, and have been overseas for 3 years in Dubai...and I rent it for below the taxable rate in UK and am an overseas landlord, what are the tax implications for me?

DO I declare it, where? Do I pay tax? the rent is about the same as the mortgage but with bills, agents fees repairs and insurance it prob makes 140 a month £UK...

Any advice?

tinamay

hi there
you need to get in touch with tax office to say your renting out but because your not making a profit you wont have to pay out any tax on your property unless your house doesnt have amorgage then the tax office will tax you,this is on a yearly basis i think as i am doing this.

RenShen

With respect there is a bit more to it than this.

For a start, he clearly does make a profit, all be it a small amount.

However, profit for tax purposes is not what you or I would consider profit.

Only some things are tax deductible e.g. not all of the mortgage payment. Only the interest element. I suggest that you get some professional advice about this.

plantpot

Which tax office? The ATO? Or British Tax office? British tax office is already aware....

plantpot

Hi I am a woman RenShen
So it's considered profit when it equates to less than the mortgage? The mortgage is around 50,000UK£ so the interest isn't vast...I just wanted some guidance from people who might already be doing this on their UK property whilst on a 457 temp visa, I am wondering if this makes a difference as opposed to PR, I am sure the Migration Agents can point us in the right direction, will of course get professional advice but all things considered we want to know if we will be worse off by moving to Sydney by just a tad or a massive amount because that affects our decision.
PP
thanks for replies

billymacker

have a look here it may help you.

http://www.hmrc.gov.uk/cnr/nr_landlords.htm

plantpot

Thanks Billymacker, I am already an overseas non resident landlord with my Uk property but pay no tax because it is below the taxable amount for UK income. I fill in a self assessment every year and declare the property as income from outside UK via post.

I am wondering if specifically 'if' I declare to ATO or continue as an overseas landlord because I will have a 457 visa which has a non resident status rather than PR, again will get pro advice on it....

Wondering if the situation differs from UAE (non tax location) to AUS (taxable yet non resident)...

So anyone on a 457 renting their uk property at a low rent below the taxable amount? What did you do? Presumably I wouldn't pay tax twice?

PP