Hi there,
I hope someone can help me.
I have been living in the UK since 2002 working.
I have a rental flat which has a yearly income of around $9600 and some shares which have under $100 dollars in dividends a year.
Since 2002, I have also accumulated further Fee Help (Hecs previously).
My problem is that i have not lodged a return since about 2005, which I am really worried about.
I am also in the process of selling the rental property.
My question is, as a non-resident for tax purposes, will the income on my property be taxed at the 29 cents to the $ and what about after I sell it?
I also have an outstanding mortgage on this rental property.
Also, would I my residential status be non-resident throughout the 8 years because I changed visa statuses throughout this time from working holidaymaker, to student visa, to highly skilled and now a UK resident.
Any advice would be appreciated.
Thanks!
$0 to $34,000 tax non resident 29%
it is almost the same as residents except you have no tax free threshold and no offsets and no medicare.
see
http://www.ato.gov.au/individuals/content.asp?doc=/content/33969.htmIf the shares dividends are fully franked you have paid 30% tax already so no more tax unless you reach 80,000 in income and then tax would be 10% more.
if the dividends were not franked you may have already had 48.5% tax withheld from the dividend.Property income of $9600 is that rental income as you get taxed on Net income.
So your net property income = rental income – (total expenses)
so you may find your net property income is smaller or negative.Capital gains tax would be the capital gain added to your taxable income but a 50% discount may apply
In your situation you could email the tax office and ask them.
http://www.ato.gov.au/individuals/content.asp?doc=/content/4892.htmduckster wrote:$0 to $34,000 tax non resident 29%
it is almost the same as residents except you have no tax free threshold and no offsets and no medicare.
see
http://www.ato.gov.au/individuals/content.asp?doc=/content/33969.htmIf the shares dividends are fully franked you have paid 30% tax already so no more tax unless you reach 80,000 in income and then tax would be 10% more.
if the dividends were not franked you may have already had 48.5% tax withheld from the dividend.Property income of $9600 is that rental income as you get taxed on Net income.
So your net property income = rental income – (total expenses)
so you may find your net property income is smaller or negative.Capital gains tax would be the capital gain added to your taxable income but a 50% discount may apply
In your situation you could email the tax office and ask them.
http://www.ato.gov.au/individuals/content.asp?doc=/content/4892.htmThanks so much Duckster. That doesn’t sound too bad. I’ve just come back to Oz to visit family with a new baby and it occurred to me that I hadn’t lodged a return for ages, and started panicking.
Really thought I was in the dog house with the ATO, and would need to pay thousands back, especially when I’m selling here to get a deposit to hopefully buy in the UK, and hence defeat the purpose of selling. But my property has been negatively geared most of the time, so hopefully the returns will be quite straight forward.
You don’t happen to know of a good/affordable accountant in Melbourne that you could recommend?
Cheers again.
I'm using http://www.robertjnixon.com/ but they cost me $770 last time I used them.
Status of residency for tax is different to that of immigration. So you may find that you could have been an Australian resident for tax purposes at least part of the time you were absent from Australia. There are also double tax agreements between UK and Australia. So you may be been required to declare the Australian income from here over there too. But you should be able to claim a credit for tax paid here (and vice versa) so you aren't taxed twice on the same income.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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