How is Australian income on Rental properties whichare owned…

Hi

Thanks for your response

Then this rental income needs to be declared to HMRC, as it would appear your tax position as a non domicile UK resident, requires you to declare all income you are in receipt of, and this net income (rents less expenses) is then liable to UK tax on the usual taxation basis called the arising basis.

However, if you feel that you and your husbands future will see you leaving the UK, then you have the right to ask for this income to be considered each year under the remittance basis.

However, if this income is in excess of £2000 a year, this will see a loss of personal UK tax allowances, and once you have been in the UK for 7 out of the last 9 years ( which is July 2013, 2013/2014 tax year) you also could be subject to the remittance basis charge which amounts of a one off £30,000 charge each tax year)

As you are married and it would seem planning to stay in the UK, then you are best disclosing this income to HMRC, before they become aware of it, for them to consider your tax position.

There will be interest due for late payment (and late declaration) but you have a better chance of avoiding crippling penalties.

You may wish to initially advise HMRC of this income and then engage an accountant to help you with the self assessment tax returns, which will include an employment page for the employment you have had each year and also a foreign income page for the rental income.

Thanks

Sam