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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am a UK citizen living in Australia. I want to buy a house

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I am a UK citizen living in Australia. I want to buy a house around 250 thousdand pounds for my parents to live in.
We would purchase outright and transfer our money from Australia to UK (and pay it off here in Australia). as uk mortgage may be a harder issue with not working there.
will this just be the first stamp duty rate as is our first house in UK?
How do letting my parents stay in the house affect that they will pay me rent?
Although I still maintain my uk bank account will i be liable for UK or Australian tax?
What other fees am i up for (council tax etc).
Thank you.
Steve Horsman

Hi Steve

Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.

If you own any other property then the additional 3% surcharge will arise on this purchase. If you do not then there will just be the basic charge arising.

If you are paid rent - then as this income arises in the UK you will have to register with HMRC for rental income and complete a self assessment tax return each year to declare the rental income and associated expenses.

Link here to register for self assessment

But as you will be anon resident landlord then you will eitehr apply for the NOn Resident Landlord scheme (allowing you to have your rents paid free of tax deduction throughout the year) or your parents (as your tenants) will need to deduct tax and pay this over to HMRC

Link here re Non Resident landlords

As you are a UK citizen you will remin entitled to UK personal tax allowances, which may then render you NOT having any UK tax liability.

But you also will need to declare this income to the Australian tax authorities but can also claim any UK tax suffered (which may be NIL due to your entitlement to UK personal tax allowances)

If you are not paid any rent - then you have nothing to declare either in the UK or in Australia.

Your parents will be the ones who pay council tax, as they are the ones who will live in this property - along with all other utility bills so there are no other fees that arise through this process (other than legal fees to manage the purchase of course)

Your only other consideration would be making sure your bank are aware of any large transfer - and discussing this with them prior to the transfer, and any charges your bank in Australia would charge for this transfer.

Let me know if I can assist further - or if you have all that you need, then it would be appreciated if you could rate me for the level of service I have provided (or click accept)



Customer: replied 1 year ago.
Thank you Sam, Sorry when you say own any other property are we only talking about in the UK or does the fact that we own our own house in OZ count?


Any property anywhere - so if you own a property in Australia - then the 3% additional stamp duty surcharge will apply on this UK purchase I am afraid.

Whether its viable, maybe gift the money to your parents - with the proviso that they leave you the property in their will - that way they are making the purchase so no 3% stamp duty surcharge, you have no rental income - so not UK tax obligations -

Just then you have to consider your Inheritance tax position in Australia for "gifting" this money

Or loan them the money and they pay it back with no interest charges (so nothing to declare again) or if they pay you the loan back with interest - then the interest will be an income you can just declare in Australia.

But please do take legal advsie on either of these suggestions, as I am a tax expert and not a legal expert on how these should be approached or implemented (I can just advsie the tax position of each!)

Do let me know if I can assist furtehr but if you have all that you need, then it would be appreciated if you could rate me for the level of service I have provided (or click accept)



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