Taxed on UK rental income in Australia?????

Hello

Spoke to an Accountant the other day and he said I should rent out my two properties here in Scotland as I would not be taxed on this (or very little) if it was under the £10,000 threshold for two people. Then he said if I was to transfer the money to Australia he 'didn't' think I would be taxed on this but I am very doubtful! I am looking for a link to an Ozzie tax specialist.......has anyone used one lately and can refer them to me?
Can anyone help me with this matter?? Any help would be greatly appreciated!!

Many thanks

Nom n Nat

 

Hiya Nnom& Nat,
Eh, I think you will be taxed in Aus. Its called Foreign Income or something like that I have been looking into same. They will deduct any tax you have paid in the uk from your tax bill. Aussie tax office website is very informative.
http://www.ato.gov.au/
Good luck .I will be watching this thread....
Allieanddermo

 

hi there. I believe you are taxed on all world wide income if you are living in Australia. You get a tax credit for any tax you paid in the UK and then if you owe anything above that (according to how your Australian tax is calculated and how much you earn in Australia) you pay the difference to the Australian tax office. The UK and Australia have a double taxation agreement. Thanks.

 

The ATO (Australian Tax Office) do ask, in each years tax return, about any overseas income. They do want their share. (If the Aus tax rate is 40%, and you pay 25% in the UK, then the ATO will want the difference of 15%)

Also if you sell the properties after migrating to Australia, you will almost certainly be up for Australian tax on any profit made on the properties, based on the AUD Value at the time of sale less the AUD value at the time of migration, less of course all selling expenses.

 

Does anyone know if you can carry a loss on property rental in the UK into Australia and use it as negative gearing here ? I know in the UK you can't use a loss to write down taxable income but you can here. So if I make a loss on my property in the UK can I bring that loss here, would seem fair if they want a share of my profit !!!

 

From the horses mouth for you:

You can offset accumulated losses against the capital gain when you eventually sell the property, so you do not actually lose the loss.

 

Thank you ! I thought it might be too good to be true !