cowgirlfromhell Posted January 21, 2015 Share Posted January 21, 2015 Can anyone tell me please, what happens if I have a joint mortgage on a property in Aus with my partner, who lives in the property, but I move back to the UK..what happens with regards to paying tax etc In Aus and the UK?. some advice would be appreciated .... Thanks! Quote Link to comment Share on other sites More sharing options...
toOZ2012 Posted February 1, 2015 Share Posted February 1, 2015 Not an expert. Will you be receiving rent or claiming expenses on your property in Australia? If no then not much to do from ATO's perspective. Your UK income will, usually, not be subject to income tax over here as long you are considered a non resident for tax purposes. https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency/ Quote Link to comment Share on other sites More sharing options...
Marisawright Posted February 1, 2015 Share Posted February 1, 2015 (edited) Can anyone tell me please, what happens if I have a joint mortgage on a property in Aus with my partner, who lives in the property, but I move back to the UK..what happens with regards to paying tax etc In Aus and the UK?. I'm not quite clear what you think you'd pay tax on? If you're not receiving any income from the propery then there's nothing to pay tax on. If you are leaving Oz for good, you become non-resident and then you're subject to tax at non-resident rates (which are much higher than resident rates). If your partner pays you rent, you'll have to pay 32% tax on the rent. If you subsequently sell the property, you'll pay 100% capital gains tax on the profit from the time you left to the time you sell. You declare your rent and capital gains on your UK tax return but you also declare the tax you paid in Australia so they don't tax you twice. Edited February 1, 2015 by Marisawright Quote Link to comment Share on other sites More sharing options...
Guest Posted February 1, 2015 Share Posted February 1, 2015 Sorry to pry but are you and your partner separating? If so, then the property should be re-mortaged in your partners name (with you obviously getting your share of the capital) and you simply walk away. Regardless of where you are resident you are liable for the mortgage so you shouldn't leave and still have that liability. If this is a temporary thing until your partner follows you then of course that is different. If the house is going to be sold eventually and you implicitly trust your partner then it may be worth re-mortgaging in their name anyway to reduce the capital gains tax liability as if the house is sold before they leave then capital gains tax would not be paid. Quote Link to comment Share on other sites More sharing options...
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