sparkleauz

Hi all,

We are renting our house in the UK and have filled out an NRL1 so we can get our rent income paid to us tax free - although that is what we thought. However, the 'ever reliable' Inland Revenue have lost my form and our agent has paid our tax to the IR. :curse: Are we still entitled to the money or is it something that needs to be claimed back via a UK tax return?

I have spoken to the IR countless numbers of times and am surprised I have any hair left to pull out! (And we haven't even started on the Australian tax return yet!!)

Can anyone in a similar position suggest what they have done or know someone that could help us. I am particularly useless as far as understanding tax goes, in the UK & overseas.

Cheers,

Jo

Nikki

Hi

We are in Oz and rent our house out in the UK. We arrived in Sept. 2006, our NRL1 form took 4 months to be processed. During that time our agent took 4 months tax from us, 3 months payments were refunded by the agent, but month had already been paid to the IR with his 1/4ly return. I believe this has to be claimed back with our UK tax return.

Because this is our first year here, I want to ensure the figures from our UK tax return are accurate when we include them on our Australian return, with this in mind I have appointed Alan Collett, who uses this forum, as our UK tax agent.

He has been extremely helpful, PM me if you require his details.

Good luck,

Nikki

expatadvisor

This seems to happen time and time again, the HMRC loses the form. We make apoint now of sending everything via registered post or special delivery and then if something goes astray at their end we charge them for our time in obtaining further originals if required (Nice feeling this !!)

As has been mentioned completing NRL1 is fine and you can reclaim the tax paid with your annual tax return, but as has been mentioned you must delcare this income with your Australian tax return and this income will be liable to tax in Australia. It must be remembered that income is of course liable to tax in the UK even if you are non resident here, the NRL1 form basically advises the revenue that you will not exceed tax free allowances here.

sparkleauz

Thanks for your help guys. Tax is a minefield isn't it!

Jo

Alan Collett

- Rental income from the UK is usually no longer taxable in Australia if you are the holder of a temporary residency visa.

- The NRL1 form doesn't advise the Revenue you will not exceed the UK personal allowance. Rather, it is an undertaking that you will keep your UK tax affairs in good order - even if you have a tax liability in the UK in respect of your UK source rental income after you have departed it is best advice (and better for cash flow) for non resident landlords to complete form NRL1.

- Form NRL1 and the associated notes are here:
http://www.hmrc.gov.uk/nonresidents/fagnrl1_bw.shtml

Best regards.

expatadvisor

Yes I should not have stated as below. The form states that in the declaration that you do not expect to be liable to income tax in the year of completion of the form, my coment re personal allowances was putting the matter too simplistically. The fact remains that even if you exceed your personal allowances in the year then there are a number of expenditure items that can be used to offset the potential tax liability such as Mortgage interest payments, insurances, agents fees etc.. which should reduce the tax liability in any case.

Another good point re UK rental income and Australian temporary visas. However, obviously as soon as residence becomes permanent then worldwide income is taxable.

Alan Collett

Not a complete statement ... see the details at this page from the ATO website:
http://www.ato.gov.au/individuals/co....htm&page=4&H4

Best regards.

expatadvisor

Great to have all this information out in the public domain, really shows how useful these discussion boards are.

carolwilk34

Guys, we rented our house out privately (not through an agent) to a friend who just about covers our interest only mortgage payments. We came on a457 visa and have only just got our PR (17 July '07). Presumably for this tax year I don't have to declare this earning as we were temp residents and only rented the house from 1 May '07??

Am applying for family assistance and my head is buzzing trying to understand the forms and trying to do the right thing.

Thanks.