Can someone please tell me, if we rent out our house in the UK, will we have to pay tax on the income, when it entered Australia.

I was under the impression that, as long as you only own one property whether it be England or Auatralia, you wouldn't have to pay tax - is this correct?

If this is the case, what happens if we eventually want to buy in Oz, can we put one house in my name and one in my husbands?

Any advice, would be greatly appreciated, we are having problems selling our house, due to the bad housing market at the moment, and this could be a solutions, but only if the figures work.

Thanks

Hi Edward

We took advise on Renting/Selling our UK property before we moved to Oz. If you are resident to pay tax in Oz then you will pay tax on all your income, this includes property in the UK.

You can reduce the tax bill by making sure the mortgage is an interest only one as you will get relief on the interest paid.

You would benefit from the UK property being in one name if say for example one of you earns a much lower income in Austarlia and is in a lower tax bracket.

Another thing we were told was that if you sell an investment within a year then you will pay 100% tax on the gains but if you sell it after a year you will pay only 50%.

I would assume that the same will apply even if you are only keeping the house because you can't sell it but I would advise you speak to a specialist as they should be able to advise what will work the best for you.

Hope this helps

Sharon
www.immigrate-to-a-new-life-in-Perth.com