Renting UK property

At the moment our house is on the market for sale and we are leaving it in the hands of our estate agent

But in the north east sales are slow so we are thinking maybe if it has not sold say within 6 months we might rent it out

We have part UK pensions just over £100 a week between us that we will leave going into our UK bank to pay rates utilities etc

Where would we stand if we rented it would we pay tax in the UK even though we will be back in Oz

We get full Centefkink pensions so would have to declare any rent paid but could we claim costs of paying rates maintenance etc

I have checked with our local council and we could get a 25% discount on rates while the house is empty but if the house is empty for 2 years the rates go up to 150%

Just exploring options really so any info would be well received

Hello

>would we pay tax in the UK even though we will be back in Oz

That would depend on your overall assessable income less allowable deductions (and considering your personal allowance): https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2016-17/tax-and-tax-credit-rates-and-thresholds-for-2016-17 (you would also have to declare it in Australia but due to the DTA would not be taxed twice as such).

>We get full Centrelink pensions so would have to declare any rent paid but could we claim costs of paying rates maintenance etc

This should assist: https://www.humanservices.gov.au/customer/enablers/real-estate-income

Hope this helps.

Thanks Andrew I have written to Centrelink 3 times in the last few months ( uploaded documents to my account etc ) to ask about their rulings but as yet have had no answer Thinking it would be best now to see one of thier financial advisors after we get back to Oz in late April

Looking at the UK government site we would be well under the government threshold but do we still have the same allowances if we are no longer resident ie living in Oz

Hopefully the house will sell sometime soon and we won't have this headache !

Thanks Andrew I have written to Centrelink 3 times in the last few months ( uploaded documents to my account etc ) to ask about their rulings but as yet have had no answer Thinking it would be best now to see one of thier financial advisors after we get back to Oz in late April

Looking at the UK government site we would be well under the government threshold but do we still have the same allowances if we are no longer resident ie living in Oz

Hopefully the house will sell sometime soon and we won't have this headache !

Your questions look like ones that would be best put to an accountant rather than a financial advisor. Two very different things. Have you got an accountant?

No we don't have an accountant - we are both retired and get part UK pensions and full Centrelink pensions

I have tried to get information from Centrelink as I believe they will class our UK house as an asset when we are not living in it but I don't know if that eff effective immediately we leave or after 12 months

We don't really want to have our house rented but we are looking at options if it stands empty for months

Like I said I will see one of Centrelinks advisor when we get back as at the moment here in the UK I am getting no response from them on my questions

At the moment our house is on the market for sale and we are leaving it in the hands of our estate agent

But in the north east sales are slow so we are thinking maybe if it has not sold say within 6 months we might rent it out

We have part UK pensions just over £100 a week between us that we will leave going into our UK bank to pay rates utilities etc

Where would we stand if we rented it would we pay tax in the UK even though we will be back in Oz

We get full Centefkink pensions so would have to declare any rent paid but could we claim costs of paying rates maintenance etc

I have checked with our local council and we could get a 25% discount on rates while the house is empty but if the house is empty for 2 years the rates go up to 150%

Just exploring options really so any info would be well received

Interesting reading, have paid the last two years rates at 100 percent,the property was empty,thinking a good idea to email them see if they will pay me back 2 times 25 persent, worth having ago

Luckily we have sold the house or very nearly so the rates won't be an issue soon Good luck with trying for a rebate we have had huge fun cancelling utilities etc but will get there - we hope