Does anyone know how you get taxed on income from rental properties ?

Are you referring to income from a rental property in the UK while you are living in Oz ??

If you are then here we go !!

Firstly find yourself a damn good agent - or even better find a friend or family member to do it for you !!

Secondly make sure you are registered as an overseas landlord with the Inland Revenue. This means that you can receive income without having tax deducted from it.

When you get a UK tax return at the end of the tax year declare your profit (profit = income less mortage payments and repairs etc - insurance policies and endownments are not considered as expenditure for this). If your profit is less than the personal allowance then you should not have to pay any tax in the UK. (Obviosuly if you have any other income from other sources then this may change the last statement - I am assuming your only income is from rental property).

However you must also declare your rental income in Oz too (unless you are here as a temporary visa holder in which case you don't need too worry- just declare it in the UK).

You need to take the UK profit and convert it to AUD and then declare that amount in the relevant place on your Oz tax return. If you did have to pay tax on it in the UK, then that amount can be converted to AUD and shown as a tax credit on your Oz return.

Hope this helps.

Sorry, no I'm not - I'm talking about buying an Oz property and renting it out

In brief, as an Aussie tax resident the net rental income is assessable, but if you incur a loss it is probably deductible against your other assessable income (unlike in the UK) - this ability to deduct losses from activities such as property rental and share investments against your other assessable income (including salaried or self employment income) falls under the general heading of what is called negative gearing.

Do a search at www.google.com.au and I dare say you will find lots on the subject!

Best regards.

We were temporary residents (457) between 10/06/05 and 05/06/06, at which point we became permanent residents.

We have let our home in Edinburgh from September 2005 and receive monthly rent (in the UK not AU.

Are we liable to AU tax on our UK rental income during our temp. residence 09/05 - 06/06 and indeed are we liable after becoming permanent residents?

Yes, I think you are - don't forget to claim allowable expenses as well.

Best regards.