TAXING QUESTION - RENTING OUT UK PROPERTY
#1
TAXING QUESTION - RENTING OUT UK PROPERTY
We are considering renting out our Uk property and renting in Oz due to the exchange rate being poor.
We would be looking to possibly book forward an exchange rate (if and when the rate improves) and putting our property on the market at that time.
My question is would we be liable to pay tax as a result of the increase in exchange rate from when we left the Uk to when we booked the rate and sold the property
Thanks
We would be looking to possibly book forward an exchange rate (if and when the rate improves) and putting our property on the market at that time.
My question is would we be liable to pay tax as a result of the increase in exchange rate from when we left the Uk to when we booked the rate and sold the property
Thanks
#2
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: TAXING QUESTION - RENTING OUT UK PROPERTY
We are considering renting out our Uk property and renting in Oz due to the exchange rate being poor.
We would be looking to possibly book forward an exchange rate (if and when the rate improves) and putting our property on the market at that time.
My question is would we be liable to pay tax as a result of the increase in exchange rate from when we left the Uk to when we booked the rate and sold the property
Thanks
We would be looking to possibly book forward an exchange rate (if and when the rate improves) and putting our property on the market at that time.
My question is would we be liable to pay tax as a result of the increase in exchange rate from when we left the Uk to when we booked the rate and sold the property
Thanks
This question usually leads to some debate.
You WILL be liable for Australian tax on any rental income from your house.
It will be counted as part of your annual worldwide income.
There are ways to minimise this so take careful advice.
G
#3
Re: TAXING QUESTION - RENTING OUT UK PROPERTY
Thanks for your prompt reply
Should have said that I was aware that I would be taxed on rental income earned. My main concern is the difference in exchange rate from when I leave the Uk to when I actually sell the property. Or would this only affect people who sell the UK property before leaving the Uk and keep the proceeds in a Uk bank account until such a time as the rate improves and then transfer the funds.
God I hope I am explaining myself clearly. i know what I want to say but its putting it in words which is the problem
Should have said that I was aware that I would be taxed on rental income earned. My main concern is the difference in exchange rate from when I leave the Uk to when I actually sell the property. Or would this only affect people who sell the UK property before leaving the Uk and keep the proceeds in a Uk bank account until such a time as the rate improves and then transfer the funds.
God I hope I am explaining myself clearly. i know what I want to say but its putting it in words which is the problem
#4
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Re: TAXING QUESTION - RENTING OUT UK PROPERTY
What category of visa do you have?
Temporary visaholders are taxed very differently to permanent visaholders and Australian citizens on overseas derived investment income and capital gains.
Best regards.
Temporary visaholders are taxed very differently to permanent visaholders and Australian citizens on overseas derived investment income and capital gains.
Best regards.
#5
Re: TAXING QUESTION - RENTING OUT UK PROPERTY
Hoping to get a permanent 136 visa
Any advice would be great
Thanks
#6
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Re: TAXING QUESTION - RENTING OUT UK PROPERTY
Happy to help in a formal capacity - my time is relatively constrained these days. If you are interested please complete the details here:
http://www.collettandco.com/contact.cfm
(please excuse the piccie!)
Best regards.
http://www.collettandco.com/contact.cfm
(please excuse the piccie!)
Best regards.