Foreign Property Income but no UK tax return?

by Readers Question

3 months ago

Foreign Property Income but no UK tax return?

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Foreign Property Income but no UK tax return?

My wife and I own 2 properties in Australia and have been filing tax returns to the Australian Tax Office for the past 10 years. We are in credit with the ATO for A$100K each and have paid no tax.

Unfortunately we did not realise that we should have filed returns with the UK tax too.

Can anyone tell me if we now file with the UK tax can we carry over the allowable tax credit to the UK tax or will we have to start from nothing and pay any profit from now.

Also what is the best course of action seeing that we have just realised this.

We have all of the previous tax records and an Australian Tax consultant did all of our tax.

Many thanks

Nigel



Comments

Neil Patterson

3 months ago

Hi Nigel,

It is actually very common even for UK rental property owners to forget/not realise they need to complete a tax return regardless if any profit is made.

This will not take HMRC by massive surprise and if you employ a good accountant and go to HMRC before they come to you I doubt they will be too upset.

Nigel Black

3 months ago

Reply to the comment left by Neil Patterson at 26/03/2018 - 10:00
Hi Neil,
Many thanks for the information and reassurance that HMRC May be quite understanding seeing that this has been a genuine mistake and not for tax avoidance reasons.
We have got a full record of ATO annual submissions completed by our Australian Tax Consultant which indicates a loss. I have completed a full calculation of the income and expenditure according toHMRC allowable guidelines, including exchange rates and it still provides use with NIL tax due to a loss.
Am I right in saying that I will be able to submit the full financial account of the revised UK allowable items, including ATO forms from the initial dates 10 years ago?

Neil Patterson

3 months ago

Hi Nigel,

I am sorry I am not a qualified and insured accountant so I would not risk giving you specific advice.

zoe

3 months ago

Hi Nigel,
The requirements can be a nightmare to deal with yourself if you don't know it all.... I have property in both the UK and Aus (reside in Aus) and would not even consider attempting to deal with the tax on the foreign properties myself. I recommend you not only use an accountant, but a specialist who also understands the tax system. I use an Aussie company (GMTax) who do both aussie and UK tax returns, they are a specialist in this field and would be well worth contacting.
Good Luck.


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