advice please...

[Janice]

Hi again,

God feel like this process is taking forever.. Anyway we are coming over on a permanent residency visa ENS, hopefully the process we be completed by 2009... What I wanted advice on is the following.

As we have not sold our house in the UK yet, we have someone who wants to rent it. I have heard that I will have to pay 40% tax on what I earn from renting my house. Is anyone in a similar position? any advice welcome. I also don't understand the whole money transfering system. Do you get taxed everytime you transfer money? Is it better to transfer a lump sum??

Thanks Janice

[Halo]

I am..... Just pay more off on you mortgage to match the rental... and its 0% tax. Tax is based on your yearly income.......

[kaz101]

Hi Janice,

I'm not sure about this yet since we've been told 2 different things...

We were told that we only pay tax in Oz, and then we've been told that we pay tax in the UK and then don't have to pay it here. So there is tax to be paid it's just how much and where?

We're getting our UK tax return done at the moment (the first year as non-UK residents) and we have investment properties there with rental income. Once that is done we've been told that figure goes into our Oz tax return.

We've transferred money since we sold our house in the UK. Until we get our Oz tax return done I'm unclear if we will be charged tax or how much. As Halo said tax is based on yearly income and we have tax credits in our favour in Oz already.

Not sure if anyone else has had tax returns done yet to give you a definitive answer....

Regards,
Karen

[Janice]

Originally Posted by Halo

I am..... Just pay more off on you mortgage to match the rental... and its 0% tax. Tax is based on your yearly income.......

Hi again,

Sorry if I am a bit thick but I don't understand this?? Do you mean for example if our mortgage was £600 PCM we only charge £600 rent to cover our mortgage, then we won't be taxed? If we actually paid off our mortgage and charged rent would be be taxed more.
We aslo have baby bonds for our children, these don;t mature until they are 16years, will we be taxed on these too? is it worth withdrawing them and starting again in Oz?




thanks Janice.

[Halo]

Correct... As as you are not making $$$ and ALL kids investments are tax-free.

[kaz101]

Hi Janice,

Halo is correct that you only pay tax on your profits, however don't forget that if interest rates go up in the UK ( I know some banks are dropping their rates at present) that there is a 2 to 1 exchange rate (almost). If you owe a pound in the UK you need to send over two dollars to the UK from Oz, and need to earn more than that before tax....

Not sure what happens with the kids bonds. You need to look at the penalties for closing down the bonds now, the tax in 16 years (who knows what that will be) - I don't think we have any accountants on forum but it may be worth contacting an agent and see if they can put you in touch with someone.

Regards,
Karen

[Janice]

Originally Posted by kaz101

Hi Janice,

Halo is correct that you only pay tax on your profits, however don't forget that if interest rates go up in the UK ( I know some banks are dropping their rates at present) that there is a 2 to 1 exchange rate (almost). If you owe a pound in the UK you need to send over two dollars to the UK from Oz, and need to earn more than that before tax....

Not sure what happens with the kids bonds. You need to look at the penalties for closing down the bonds now, the tax in 16 years (who knows what that will be) - I don't think we have any accountants on forum but it may be worth contacting an agent and see if they can put you in touch with someone.

Regards,
Karen

Will do thanks all.
Janice