tux182

We have property in the UK and we have used GM Tax to do both our UK and Aus tax returns - give them a call

Have you declared yourself non resident in the UK?

No i cant say i have!

I presume you ask as this will help?

Also - great stuff about GM tax! Looks ideal!!

It doesn't need an expert in Australian and UK tax, this is pretty basic tax stuff and most accountants will be familiar with dealing with a little bit of overseas sourced income.

 

You have also misunderstood my point on the tax credit.

 

If you find that making a profit of (say) $5k and paying $2k tax (so being, say, $3k up for the year) is less desirable than making $0, the by all means sell. Ask your employer for a paycut whilst you are at it, will also bring down that tax bill.

:wink:

Then all the accountants i've found thus far havent been confident with the situation. So i guess i'll keep looking for another. Ideally i'd like to find someone who is experienced in this side of things.

Yes i think alot between us is being misunderstood, both ways....

Thanks for the tip...

Its not as straightforward as wanting to make a profit or not. Theres a fair few other factors involved (needing a lump sum for a property in Oz, being tired of renting out and the hassles that come with it), to name a couple.

Moved to Money and Finance

Thankyou. Apologies for posting in the wrong area

you need an accountant for tax advice.

Totally - i'm struggling to find one in Australia that is also an expert in UK property considerations. Which probably could sort all of this out...

Well it is unusual but certainly not impossible that you made sufficient profit in a one bedroom flat in UK to attract tax

A tax return for the UK property for UK tax is required no matter how much or little you are making or losing financially. So when you profit, you attract tax.

Perhaps you just missed it as it would be in separate parts of the return.

No, i didnt. They told me in person face to face!

Should you sell? That made me smile.

I dont understand why you've said this. I do understand that paying tax means you must be making a profit! But, i dont fancy pay 2k+ in tax each each on that profit...

So maybe selling might just be an easier solution! This may have other complications

Hi All

I'll do my best to describe my situation. For the last tax year i got taxed 2k, which was mostly because of my UK property. At least from my understanding

I have been in Oz for 5-6 years. In August 2015, i finally got my PR

- I work full-time

- I have a small ebay business

- I also have a 1 bed flat in the UK, that i own and rent out.

I declare my property (tax wise) with the HMRC. My property makes a profit. Therefore i get taxed from the UK on my profit.

When i did my 2015/16 tax return in Oz this year (with an accountant). Despite paying UK tax, I had to pay Oz tax on it too!

My ebay business officially made a loss. My income from my job was also taken into account. But as mentioned the accountant said the bulk of the 2k was because of the property

My understanding is that i made X in rent as an income. But the interest on my outstanding mortgage is minimal. Therefore i have the difference to pay tax on, which is a large sum.

This hits me twice fianically (in the UK and in OZ). Or at least it did via this accountant...

So my question is

A) - Is this right?

B) - Can i do anything tax-wise to improve things?

C) - Is a better option to sell up?

D) - If i do sell, how can i bring the cash over to oz without getting taxed?

I hope this explains things.

Thanks in advance for any tips