poltax

I have some further questions: You state: "If income from property in the UK does fall below the personal allowance, then no income tax should be deducted, however, personal allowances and any deductions must also be taken into consideration.". Can you please elaborate on 'personal allowances and any deductions'? You state: "You would declare Australian employment income within the SA106 Foreign page, which would be included within your overall calculation.". The HMRC hotline was explicit that Australian employment income would NOT be considered in my UK calculation. Who is correct? Please provide a source of information as unfortunately I regularly get mis-information from HMRC which makes completing my taxes correctly a lottery. You state: "When declaring the mortgage interest figure, you would place this through as a residential finance cost, not an expense.". The question was whether the 20% of mortgage interest is given as a tax credit to reduce my final tax bill (rather than final taxable income). I do not want to know how to put it through, I want to know the outcome. You did not answer #5

I want to know whether I would need to pay capital gains tax if I sold my property now or in the future (assuming I remain living in it as my main residence until the point of sale). Below is a summary of my ownership period. Note that I would have been non-resident for tax purposes whenever I was abroad, and the entire property was rented for these periods. > I bought a property in the UK and lived in it as my main/primary residence for 3 years and 8 months. > I then moved abroad for 21 months, where I traveled and set up a location independent business that ultimately failed - resulting in no income for this period. > I then moved to Australia as a permanent resident (on a qualifying visa) to take up paid employment for 5 years. This was a job I applied to, with an entirely new employer (e.g. I was not transferred). > I then moved back to the main/primary residence in the UK for 3 months (where I am now). Please confirm any periods where CGT would be due, if any.

I am doing some forward planning as I intend to become an Australian resident for tax purposes, and I have a few questions as to how I will pay tax on my rental income. 1. The Australia Tax Office advised that under the Double Taxation Agreement, I should only pay tax on UK rental income in Australia. However my understanding is that I pay tax on this income in the UK first, then get a tax credit against any additional tax paid on this income in Australia. Is that correct? 2. Assuming the above is correct, am I also correct in saying that the UK calculation will only consider my UK income. E.g. if I my sole UK income is from rental property, and that income is £12,000 after allowable expenses, I would owe £0 tax in the UK, as I am under the personal allowance? And that this would be true even if I earned £50,000 from employment in Australia? 3. Am I correct that the UK calculation will be based solely on UK rules (around deductions, tax rate etc), and that the different rules for this type of income in Australia have no bearing on the UK calculation? 4. When performing the UK calculation I understand I can deduct 20% of the total mortgage interest paid against my final tax bill. Is this correct, or do I deduct the this from the total taxable income? 5. If I am non-resident in the UK for tax purposes, does the 20% mortgage interest deduction still apply? 6. Are there any changes to the UK calculation I need to be aware of on account of being a non-resident? Many thanks for your help.