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Go Matilda - Your Gateway to Australia The Go Matilda Forums The Go Matilda Forums The Tax and Money Forum Tax Returns
The Go Matilda Forums The Go Matilda Forums The Tax and Money Forum Tax Returns|
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Have two questions if anyone can help...ATO really need a specific section on the site for new PR's, but hey why would they be helpful?!!Anyway, Contacted ATO and they sent an unhelpful email saying they wouldn't answer specific questions so any thoughts on these anyone???
1. I have transferred a property in UK to my parents - they now own it and have beneficial interest, but my name is still on legal title deed (due to fixed term mortgage) - Do I have to declare this on my tax return as an oversea's asset, given aside from my name being on deed, my parents own it? 2. Do we have to declare any savings in the Uk as an overseas asset on tax return? Cheers! |
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If your name is still on the title deeds then you still own the property (or at least part of it if your parents are also on the deeds). So long as there isn't income there shouldn't be a probelm, although CGT might come into play down the track.
As an Australian tax resident you have to declare income from all sources, and that would include interst from foreign bank accounts. Mark Willis
This message has been edited. Last edited by: Alan Collett, |
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Thanks for the reply - has confirmed what we were thinking...Annoying though as we didn't want to transfer all our savings for a year or so until we decide to purchase a house, but suppose if needs must to an avoid unnecessecary tax bill!
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- Who is paying the mortgage? If your parents => that would indicate they are paying rental income to you, which means there are Inland Revenue compliance requirements once you become a Non Resident Landlord.
- Don't forget UK Inheritance Tax issues. - Not sure how your parents can "own" the property if your name is on the title/mortgage deed => a lender would usually not be comfortable with such an arrangement. Are you sure this is in fact the situation? Best regards. Alan Collett alan-at-gomatilda-dot-com Registered Migration Agent Number 0102534 Fellow of the Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in Australia http://www.gomatilda.com and http://www.collettandco.co.uk Offices in Southampton - England; Melbourne, Perth, Brisbane, and Geelong - Australia |
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Thanks Alan - the situation is parents have bought the property from me, but the exchange date is delayed for two years (til end of fixed term to avoid penalties) my name stays on deed, so I have legal interest thats it. They pay mortgage, have all beneficial interest and property is theirs, I am not the landlord as far as I am aware and bills and any rent if they deicide to rent it. I am concerned as to whether I will need to put it as an overseas asset on my tax return given I have no interst finacially in it. Also if I do ned to declare on tax return whether I should get a letter from solicitors who dealt with transaction to send with Tax Return? Any idea's?!!!
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Sounds as if you haven't exchanged contracts?
Or is it simply a prolonged settlement date? For CGT purposes the property is sold when the contract is signed. There is a strong possibility that the ATO would construe your parents paying the mortgage for two years as income. As your name is still on the title deeds you will be assessed on the income if it is rented. You will be unable to assign the income to your parents as the anti-avoidance rules will kick in if the arrangement is for less than seven years. This is an Australian perspective only.
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Cheers Alan - this is what I was thinking, even though prolonged completion I thought as I am still on the title deed I would need to declare on tax return and what you are saying would more likely be the case. Bad news but hey - You're a star!
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Alan - Been speaking to stepfather about this and he will contact you privately for advice via your Firm, as to options and likely tax implications for me in Australia if the transfer/sale (he will explain!) goes through here in the UK. Cheers
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Mark - Thanks for the above - will contact Alan re your comments as they seem to make sense. Cheers
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On a Oz tax return you are not asked about your overseas (or Oz) assets just your income from these assets. The only time you have to declare them is when their status changes (generally when you sell them) and then they only want to know what your capital gain was after expenses. |
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