Hi,

Does anyone have any advice on the tax implications of letting out at U.K property before moving abroad?

1)Income Tax: If the net income derived from the rental property is below the tax free threshold, does it need to be declared to the IR?

2) CGT: On the eventual disposal of your sole U.K property whilst a non-resident, are there any ways of avoiding an Australian CGT tax bill, when it would have been tax-free in the U.K as sole residence?

I know these are complicated situations, but any advice would be much appreciated before leaving for Australia.

Answered two topics before

posted 08-01-04 02:45 PM
Check out

http://www.inlandrevenue.gov.uk/cnr/faqs_capgains.htm


http://www.inlandrevenue.gov.uk/pdfs/ir87.htm#capital[/URL]

http://www.inlandrevenue.gov.uk/pdfs/2002_03/capital_gains/ir283.pdf

Assumeing you are going to become resident in OZ for tax purposes.
Your tax free allowance in UK means squat to the Australian Tax office, they are only interested in your Oz tax free allowance which is $6,000.
So once your worldwide income (investment and job income) exceeds this $6,000 you will be taxed in OZ as though all the income was remitted here (even if you leave it in the UK).
I believe if you just rent in Oz you can still claim your UK house is your main residence and so free of CGT.

be very careful, you are taxed on (income-costs) for the house. if you have no mortgage you will be taxed on the rent you receive, from the day you arrive in Aus. if you have a large mortgage on it and the costs are biggerthan the rent then you will not pay tax. the house can be your primary residence for up to 7 years i think provided you have lived in it for 1 year. for these years you will not be taxed on the increase in the value.

Get some proper tax advice before you arrive in australia!!!!