jiminoz

Thanks Graham - it is our only UK property and primary residence. As we haven't bought anywhere out here in Australia I understand the rules are that you are allowed to rent it out for up to 6 years before becoming liable for capital gains tax to the ATO. I'm hoping we can avoid it in the UK as well, having been out of the country for over 5 years, but will be seeking professional advice on this at some point before we come to sell. Cheers Jim

Thanks Buzzy Bee. I should have mentioned that I do fill in a UK tax return each year as well but the income is under the threshold for tax as a UK citizen, so no tax to pay there. Unfortunately not the case when the income is declared on my Aus tax return. I was hoping for a nice fat deduction there but will just have to wait until we sell it I suppose! Cheers Jim

Hi all Been searching the ATO website on this but I cant find anything as I don't think there is a freehold/leasehold system on apartments in Australia. I have a leasehold flat in the UK that is ticking down to 80 years remaining on the lease, and am currently negotiating with the freeholder to extend this for another 50 years or so. The cost is likely to be around 9-10k GBP. Until now the property has had a positive net rental income which is declared and paid for on my Oz tax return each year. My query is, would the cost of the lease renewal be considered a deductible expense by the ATO? Cheers Jim