Tax Help Please - think we're getting the wrong advice

[Cal2]

Ok - it's tax related, but I'll try and keep it simple so I don't get confused!!!

 

1) UK pensions - pay tax in UK, do we declare here and pay tax here (Australia) as well as UK? if so, what do we pay where? We are now on PR.

 

2) UK House rented out (at small loss) - do we declare here? How does this work?

 

thanks for any help / advice

 

Cal2

[buzzy--bee]

Do you have PR/citizenship in Australia?

 

If so, you do a UK tax return for any income you earn in the UK and pay the tax owed in the UK.

 

Then you declare the UK income in your Australian tax return, and also declare the tax you paid on it already in the UK, which is then applied as a credit to your Australian tax owed.

 

So you only pay it once, but you declare it in both countries.

 

BB

[Andrew from Vista Financial]

Ok - it's tax related, but I'll try and keep it simple so I don't get confused!!!

 

1) UK pensions - pay tax in UK, do we declare here and pay tax here (Australia) as well as UK? if so, what do we pay where? We are now on PR.

 

2) UK House rented out (at small loss) - do we declare here? How does this work?

 

thanks for any help / advice

 

Cal2

 

Hi Cal

 

1) Yes you would have to declare in Oz and pay tax accordingly however generally a tax credit for UK tax paid will apply. That said generally Pensions can be paid gross from the UK and therefore assessed for tax only in Oz (I have hopefully attached a PDF which is/was a HMRC form to go about having this done however I am not sure whether this is still in date and still the process, perhaps @Alan Collett could clarify?)

 

2) Yes income and allowable expenses declared here in Oz, if making a loss then you are effectively negatively geared and thus generally the loss would be reduced due to the tax rebate received.

 

Regards

 

Andy

aust-indiv2003[1].pdf

aust-indiv2003[1].pdf

[Alan Collett]

Thanks Andy.

 

Yes, now the OP is a permanent resident the form should be completed and sent to the relevant ATO office for stamping and onforwarding to HMRC.

 

Tax deducted under PAYE since p/r was granted should be refunded, and not claimed as a tax credit against the Australian tax bill for 2013/14 - the UK pension income is now properly wholly assessable in Australia following the granting of permanent residency.

 

Agreed that the UK property loss can be tax deducted on the Aus tax return following the granting of permanent visas.

 

Best regards.