Rent or sell in UK

oxo · 22-03-2008, 01:09 AM

Hi all at POI,
I need some advice please.
With the fall in value of the AU$ to the GBP and the current house prices in the UK pretty static. Is it worth renting our UK house out and renting in Oz for a few years until things improve? (if they ever do) I've heard that there are big tax implications on having property in the UK which you get rent for? Has anyone done this?
Thanks in advance.
Andy

bunnyboo · 22-03-2008, 09:44 AM

Hi Andy,
We have decided to rent our uk home out as we are entering Oz on a temp 4 year visa. Our accountant did mumble under his breath about taxable income on the rental but apparently after 'running costs' and mortgage payments he reckoned we would be within our taxable allowance. Also one rental agent did comment on the need to inform the inland rev that we were non domicile and the inland rev might insist that he kept hold of part of our rental income in case we owed any taxes??

I think our tax position will change once we get PR in oz but we intend to take advice before going and once we are there.

Sorry I can't be more informative but i hope it helps a bit?

Debsx

Sheerluck · 22-03-2008, 10:26 AM

Andy,

We've rented our house out, but only on a short lease in the hope that the market will pick up for the summer.

We have to forfeit 22% of our rental income directly to the letting agency, which means that by the time they've taken their chunk, the mortage is not quite paid.

Been meaning to find out if there are any capital gains implications if it's sold without us being resident. Must find out soon!

Dave

bunnyboo · 22-03-2008, 10:42 AM

Quote:

Originally Posted by Sheerluck

Andy,

We've rented our house out, but only on a short lease in the hope that the market will pick up for the summer.

We have to forfeit 22% of our rental income directly to the letting agency, which means that by the time they've taken their chunk, the mortage is not quite paid.

Been meaning to find out if there are any capital gains implications if it's sold without us being resident. Must find out soon!

Dave

Hi Dave,
If you find out what the situation is with CGT on monies in the uk will you run a new thread please? I will if i find out anything.

Many thanks
Debsx

Sheerluck · 22-03-2008, 11:12 AM

Debs,

Will do. Been meaning to find out for the last 5 months, just been too busy!

Dave

oxo · 22-03-2008, 02:50 PM

Thanks Deb and Dave.
I've been digging around on the Revenue and Customs web site and it's still not very clear. I did find this document on there but to be honest it's all mumbo jumbo to me. I think the answer is in there somewhere? HM Revenue & Customs: International series. It would be useful speaking to someone who has actually done it.
All the best
Andy