Ronansmyth Posted November 23, 2015 Share Posted November 23, 2015 Hi All, I was hoping for a bit of advice. My wife and I will be heading to Australia in January and are looking to rent out our London flat. We have linked in with a letting agent and have found tennants, but are at a bit of a loss in regards to the tax implications. We have been advised to get an accountant, but we have also been adviserd to not get an accountant. We have been advised to send a P85 form to HMRC, but (can you guess where this is going) we have been advised froma different source not to bother. Had anyone been through this process and have any advice on the best course of action? Thanks Ronan Quote Link to comment Share on other sites More sharing options...
Marisawright Posted November 23, 2015 Share Posted November 23, 2015 Assuming you've got PR, you'll be an Australian resident (which means you'll have to declare your UK rent on your Australian tax return) - so you need Australian tax advice just as much! You need to get a depreciation report done on the property NOW, otherwise you'll miss out on deductions that you'll be able to claim, and will end up paying far more tax than you need to. I have no idea what the UK tax implications are for a non-resident renting out a UK property so that's the other thing you need to check. Because you've got both countries to consider, you really need an accountant who knows both - not easy to find. There's one on these forums somewhere, I forget who! People who are advising you not to bother may be thinking, keep quiet because no one's going to notice - a risky thing to do, since penalties for tax avoidance can be scarily high. Quote Link to comment Share on other sites More sharing options...
Guest Posted November 23, 2015 Share Posted November 23, 2015 I'd suggest you contact @Alan Collett - his company did my tax affairs when we first moved - those first couple of years are a bit more complicated and even though I had always done my own tax returns in the UK I found an accountant saved me a fortune in the transition. It is quite advantageous being a landlord in Australia even if the property is in the UK and an accountant will make sure you claim all the allowances. Although the rent just about covered our mortgage with depreciation we got a pretty decent tax rebate each year from the tax paid on employment. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted November 24, 2015 Share Posted November 24, 2015 Hi Ronan. Feel able to send a PM or email to me (click on my name to the left of this post), or complete the enquiry form at the GM Tax website (see the link below). Best regards. Quote Link to comment Share on other sites More sharing options...
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