talktosi Posted Sunday at 09:59 Share Posted Sunday at 09:59 Australian resident who receives UK income on rental property. I have done UK tax return and about to submit Australian tax return - but it seems that I will be liable for a big chunk of extra tax due to uk foreign income - despite paying Uk tax. It seems that I can only claim a foreign income tax offset for a maximum of the UK tax I have paid - which is far less than the extra tax the Australian tax office will ask me to pay. The “ not being taxed in 2 countries “ thing is far from the truth. Any advice very welcome Quote Link to comment Share on other sites More sharing options...
Marisawright Posted Sunday at 10:46 Share Posted Sunday at 10:46 42 minutes ago, talktosi said: Australian resident who receives UK income on rental property. I have done UK tax return and about to submit Australian tax return - but it seems that I will be liable for a big chunk of extra tax due to uk foreign income - despite paying Uk tax. It seems that I can only claim a foreign income tax offset for a maximum of the UK tax I have paid - which is far less than the extra tax the Australian tax office will ask me to pay. The “ not being taxed in 2 countries “ thing is far from the truth. Any advice very welcome It's never been true that you won't be "taxed in two countries". You're liable to pay tax in the country where you are resident, at whatever rate that is. If the rate is higher in your country of residence (Australia) than it is in the foreign country (UK), then of course you have to pay the difference. Having said that, are you sure you're claiming everything you're entitled to claim? Quote Link to comment Share on other sites More sharing options...
talktosi Posted Sunday at 21:47 Author Share Posted Sunday at 21:47 10 hours ago, Marisawright said: It's never been true that you won't be "taxed in two countries". You're liable to pay tax in the country where you are resident, at whatever rate that is. If the rate is higher in your country of residence (Australia) than it is in the foreign country (UK), then of course you have to pay the difference. Having said that, are you sure you're claiming everything you're entitled to claim? It’s makes a mockery of the so called Double Tax Agreement between Australia ( and many other countries) It seems I can only offset the amount of UK tax I paid against total income ( which is much less significant than subtracting it from my Australian tax liability. I am effectively paying tax twice. Quote Link to comment Share on other sites More sharing options...
rammygirl Posted Sunday at 22:57 Share Posted Sunday at 22:57 You should be taxed in Australia for the overseas rentals. There is a form to complete for this. You should seek advice from an accountant who understands this. A basic tax agent may not. They can also ensure you are claiming everything back. Likely they will pay for themselves going forward……. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted 8 hours ago Share Posted 8 hours ago 23 hours ago, talktosi said: It seems I can only offset the amount of UK tax I paid against total income ( which is much less significant than subtracting it from my Australian tax liability. That sounds odd. Is this where you're putting it in the tax return? https://www.ato.gov.au/individuals-and-families/your-tax-return/instructions-to-complete-your-tax-return/mytax-instructions/2024/tax-offsets/foreign-income-tax-offset Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.