Moving out of the UK to Australia for two years, maybe more
Discussion
So what financial plans should I be thinking about?
I have shares in property so get rental income comes in monthly. I also have a few things that will need looking after so put into storage plus a private plate.
Also the sale of an inherited house will probably be completed once I'm away, worth thinking about?
Should I think about setting up a limited company which receives all the income then pays out bills/tax? Or am I over thinking it?
I have shares in property so get rental income comes in monthly. I also have a few things that will need looking after so put into storage plus a private plate.
Also the sale of an inherited house will probably be completed once I'm away, worth thinking about?
Should I think about setting up a limited company which receives all the income then pays out bills/tax? Or am I over thinking it?
Edited by AndrewEH1 on Sunday 14th September 20:50
Eric Mc said:
I was hoping the OP would reply as we could see what his line of (over) thinking was.
I have no idea really...that's why I'm asking!Currently rental income comes to me directly and then I do a self-assessment to ensure I pay the tax on the income minus costs. If I was living abroad this income would still be received. What are the, if any, tax implications of this?
When the sale of the house goes though I would have to pay capital gains if I was resident in the UK (it is currently being renovated and isn't my home). What happens if I was to be living permanently abroad at the time?
AndrewEH1 said:
Eric Mc said:
I was hoping the OP would reply as we could see what his line of (over) thinking was.
I have no idea really...that's why I'm asking!Currently rental income comes to me directly and then I do a self-assessment to ensure I pay the tax on the income minus costs. If I was living abroad this income would still be received. What are the, if any, tax implications of this?
When the sale of the house goes though I would have to pay capital gains if I was resident in the UK (it is currently being renovated and isn't my home). What happens if I was to be living permanently abroad at the time?
It is normal for those living overseas to appoint a rental agent to handle their rental affairs whilst abroad and there is a requirement for rental agents to deduct tax at source on rental income received from the tenants (this applies to rental income received by limited companies as well).
When you complete the self assessment tax return, if the tax deducted at source by the agent exceeds the true income tax liability, HMRC will refund you the excess paid.
A lot of the details are covered here -
http://www.hmrc.gov.uk/international/tax-incomegai...
I think the rules on CGT changed fairly recently. An awful lot of foreign UK property owners (especially in London) were escaping CGT completely. It was making it harder and harder for UK residents to compete.
Despite that, I'm not sure the rule changes will have made a huge amount of difference to the rich Saudis, Chinese, Malaysians and Russians who have been buying up London wholesale.
Despite that, I'm not sure the rule changes will have made a huge amount of difference to the rich Saudis, Chinese, Malaysians and Russians who have been buying up London wholesale.
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