catatemyfish Posted September 6, 2017 Share Posted September 6, 2017 Hi, Just after some advice with regards to declaring my UK rental income on my Australian tax return. Are there any deductions on profit received from your rental property that you can make on your Australian tax return that you can't on your UK one? I get my tax return completed in the UK (solely rental income) each year and then pass this info onto a local tax agent to lodge my tax return to the ATO but I'm not convinced that she knows the ins and outs of the UK and Australian systems and I worry that I'm paying too much tax to the ATO unnecessarily. TIA Quote Link to comment Share on other sites More sharing options...
Ken Posted September 7, 2017 Share Posted September 7, 2017 You may be able to claim some depreciation - but you need a Depreciation Report to do so. See the thread "Depreciation report on UK rental property". I don't know if the cost of obtaining the report (which should itself be claimable) will be worthwhile but it looks as if Alan Collett may be in a position to advise. Other than that have you incurred any expenses on your UK rental property that you haven't been able to claim on your UK tax return? Quote Link to comment Share on other sites More sharing options...
Collie Posted September 7, 2017 Share Posted September 7, 2017 Mortgage interest is the big one and any expenses incurred in renting out the property (advertising, agents fees etc) The big difference is that if you make a loss on your rental property you can offset that against other income in Australia (Negative gearing) 1 Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted September 9, 2017 Share Posted September 9, 2017 Yes, as Ken mentioned you should explore claiming a tax deduction in Australia for the depreciation of certain items within the let property in the UK. Maybe also what is called a Capital Works Deduction, subject to the age of the property. Please feel able to send a PM to me (click on my name to the left of this post) if you would like details of the firm of Quantity Surveyors we work with, and who will have a freebie discussion with you about the merits of having a report prepared - they have a UK office and their fees are tax deductible too. If you have prepared tax returns previously where deductions to which you are entitled have not been included you should be able to lodge amendment requests to generate tax repayments. Best regards. 1 Quote Link to comment Share on other sites More sharing options...
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