Letting a property when out of country

[mickthemechanic]

Hi

Myself and my family are currently looking into going to Australia on a 457 visa. We have a home which I am inclined to keep and rent out. There is a mortgage of 1/3 of its value at the moment which could be paid off before we go but would make things very tight. What are the legalities regarding income tax ETC. the rent generated would be about £4.5k-£5k a year how would this work being out of the country.

Mick

[audidoody]

You're going to need to get your lender's written permission. I wouldn't think there would be much tax to pay as you'll have a lot of deductions e.g. 15 per cent lettings and management fee, mortgage interest (you'll still get some relief), buildings insurance, repairs and maintenance, and your annual personal allowance.

[Eric Mc]

And if the property is jointly owned, the rent will be split 50/50 with each individual able to offset their UK personal tax allowance against their share of the rental profit.

You will probably need to sign up to complete UK self assessment tax returns though (both parties, of applicable).

[Ozzie Osmond]

Worth mentioning - does Australia tax "worldwide income"?

[mickthemechanic]

Hi

Thanks for the reply's. Yes I think Australia does have world wide tax but it would be split between my self and my partner as per the UK.