Hello
I have just moved to lovely Adelaide with my wife and have PR status. I own and rent out a property in UK. I have registered as a non resident landlord so recieve rent without tax deducted. Towards the end of the tax year i will fill in an online tax return for the UK. I will add up Agent fees, repairs made on my property and my mortgage repayments and calculate what my profit was made with the rent i recieved. I calculate that it will be just above the 4500 rate so expect a small tax bill of a few hundred quid. does that mean that i won't have to pay tax on the income i made to the Oz Taxman.
A westpac advisor told me that i needed to pay tax on the CGT on the increased value of the property.
Is this true and therfore how much CGT will i pay if i sell in 2 years time?

I would suggest that you take advice from an accountant with experience both in the UK and Oz such as Alan.

Your's is a complicated situation. Your rental income is declarable both in the UK and Oz but subject to the double tax treaty so eventually you will get relief from double tax.

As a UK citizen you will still be liable for CGT in the UK on the profit made on your investment property since the day you acquired it and you will be liable for Oz CGT on the profit made since the day you arrived in Oz under PR until you sell it. Again subject to to the double tax treaty. You will need to obtain a valuation of your property on the day you arrived in Oz for PR purposes.

Having said all that I am sure I read somewhere that the UK was changing its CGT rules - another reason to get an expert opinion.

I have no idea how old you are or what your property is worth but what a lot of people who move from the UK forget is that if they have assets in the UK and have not established a change of domicile -not to be confused with residence - then their estate could be liable to inheritance tax if they die prematurely.

Perhaps you should think about transferring the property into a family trust but again you should take advice on this.

If the property was occupied by you as your main residence before it was let you may not have a CGT issue for at least 6 years ... search the ATO website, and if still unclear consider engaging a tax advisor with knowledge of both jurisdictions.

Best regards.

PS. As a permanent resident of Australia who is also tax resident your worldwide income is assessable in Australia, as Paddy says.