UK rental tax

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May 25th 2010, 2:55 pm

#46

rockpeblar

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Posts: 526

Re: UK rental tax

Quote:

Originally Posted by Alfresco

But if you had made a £3 loss, you would have been able to offset that on your Oz return against your Oz earnings.

Correct !!

May 25th 2010, 3:48 pm

#47

louie

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Re: UK rental tax

Quote:

Originally Posted by Meretooz

Nobody yet seems to have replied to the point raised by kjj - If the rental income is below my personal allowance and therefore no UK tax is deducted will the ATO tax it notwithstanding it's already been "taxed" by HMRC.

Meretooz

Yes. Rental profit (not income) will be assessable by the ATO - it will be added it to your other (worldwide) income if you are tax-resident in Australia and have PR.

May 25th 2010, 4:02 pm

#48

louie

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Re: UK rental tax

Quote:

Originally Posted by zazutata

It's crazy to suggest that the Inland Revenue in the UK would not have an interest in assessing that rental income as taxable just because we are permanent residents - our house an asset based in the UK after all which is why capital gains tax is tied into this too.

Actually UK capital gains tax works differently. There's a helpful summary here on pages RRN23 to RRN27 which explains how different types of income/gains are taxed in the UK depending on your residence, ordinary residence and domicile status. UK rental income is generally taxable in the UK, UK capital gains are not unless you are temporarily non-resident (see page RRN10).

May 25th 2010, 5:00 pm

#49

Meretooz

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Re: UK rental tax

Quote:

Originally Posted by louie

Yes. Rental profit (not income) will be assessable by the ATO - it will be added it to your other (worldwide) income if you are tax-resident in Australia and have PR.

Thanks everybody:Meretooz