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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 50728
Experience:  24 years experience. Admitted in New South Wales and the UK.
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Currently in AUS and renting my house in the UK. We have

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Currently in AUS and renting my house in the UK. We have just begun to rent our house out to a family member (below market rate). We are being slammed by AUS tax because of the property in the UK. What would be the impact of informing them that the house is being rented to a family member?Will it affect us claiming for expenses?
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Nicola
Customer: replied 2 months ago.
I would like to speak to a tax expert from aus

Hi, I am Leon, a NSW Solicitor. I am reviewing your question and will reply again in a moment.

Good Afternoon

If you are living in Australia you have to declare all your income world wide. Australia and the UK have a Tax treaty to avoid double taxation

https://www.gov.uk/government/publications/australia-tax-treaties

You cannot do your own tax returns in australia you need a Certified accountant that understands these treaties and how to deal with the tax paid in the UK

You cannot claim the expenses in both countries.

You claim them in the UK

The figure being the taxable income is what you use here and then the tax you paid in the UK is also noted in Australia.

But you need an accountant to prepare your returns.

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Leon

Customer: replied 2 months ago.
Thanks for that, we have and are being slammed in AUS for our UK property. The question I did have was would it make any difference if a relative in the house at a reduce rate? If it doesn't and we will have to pay in the 100's again, it isn't worth declaring. Our rent in the UK now is approx 18K (UK) previously it was 26k. I pay the ATO $100 a month for my Income tax 551 and 001 PAYG (my wife pays more).Will declaring we have a relative rather than a tenant make a difference?

Good Evening

It makes no difference who rents from you.

It is income earning and you have to pay tax.

If you do not receive income then you do not pay tax on it. It is the income you pay tax on

Leon, Solicitor
Category: Australia Law
Satisfied Customers: 50728
Experience: 24 years experience. Admitted in New South Wales and the UK.
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