UK rental property via limited company

[ashley8]

Hello!

My partner and I own a UK BTL rental property through a UK limited company.

When we move to Australia under our PR visas, we will be deemed Australian tax residents. We are joint directors / shareholders of the limited company.

Personal tax reporting requirements are clear to me (we also own property under personal names), however I have received some conflicting expert advice for the limited company which has left me questioning what is required.

I am pretty sure that the UK company would report and pay corp tax in UK, however would it also have similar requirements in Oz including registration with ASIC as an Australian business? 

[paulhand]

3 hours ago, ashley8 said:

Hello!

My partner and I own a UK BTL rental property through a UK limited company.

When we move to Australia under our PR visas, we will be deemed Australian tax residents. We are joint directors / shareholders of the limited company.

Personal tax reporting requirements are clear to me (we also own property under personal names), however I have received some conflicting expert advice for the limited company which has left me questioning what is required.

I am pretty sure that the UK company would report and pay corp tax in UK, however would it also have similar requirements in Oz including registration with ASIC as an Australian business? 

I suggest you speak with @Alan Collett

[Cheery Thistle]

Also interested in this as we hold property in ltd too. 

[rammygirl]

It is a bit complicated. Basically if the Uk company is active then the ATO are interested. We looked at this as we have a dormant UK company holding assets. We do a company return in the UK every year and company registration in UK. Not VAT registered now only income is interest.

Any withdrawals as company dividends are reported to UK HMRC but are taxed in Australia as income. No wages are paid. 
You do need to seek professional advice about your particular situation going forward though. 

[Alan Collett]

On 03/10/2023 at 02:47, paulhand said:

I suggest you speak with @Alan Collett

Thanks for the kind recommendation, Paul.

Best regards.

[ashley8]

Thanks all, @Alan Collett I’ll drop you a message.

[Rachandian]

Keen to know this also . We have a ltd with 2 properties in and unsure what we would need to do if we move 

On 02/10/2023 at 12:58, ashley8 said:

Hello!

My partner and I own a UK BTL rental property through a UK limited company.

When we move to Australia under our PR visas, we will be deemed Australian tax residents. We are joint directors / shareholders of the limited company.

Personal tax reporting requirements are clear to me (we also own property under personal names), however I have received some conflicting expert advice for the limited company which has left me questioning what is required.

I am pretty sure that the UK company would report and pay corp tax in UK, however would it also have similar requirements in Oz including registration with ASIC as an Australian business? 

 

[Ken]

On 02/10/2023 at 21:58, ashley8 said:

Hello!

My partner and I own a UK BTL rental property through a UK limited company.

When we move to Australia under our PR visas, we will be deemed Australian tax residents. We are joint directors / shareholders of the limited company.

Personal tax reporting requirements are clear to me (we also own property under personal names), however I have received some conflicting expert advice for the limited company which has left me questioning what is required.

I am pretty sure that the UK company would report and pay corp tax in UK, however would it also have similar requirements in Oz including registration with ASIC as an Australian business? 

The short answer is that no, the company doesn't have any reporting requirements in Australia, either with ASIC or the ATO, however you have a Controlled Foreign Company and in your personal tax return should be reporting the Attributed Foreign Income attributed to you from that company. It's irrelevant whether or not it's actually been paid to you.

The long answer you have to pay a Registered Tax Agent for!