Uk tax return

[alan999]

Uk have kindly sent me a tax return for 2012/ 2013 because although I've been down here for 6 1/2 years I've only this last year rented out my UK "home". The form seems very daunting, is it doable for a non- tax minded person or is it too full of pitfalls.

Thanks, Alan.

[chrisl34]

Uk have kindly sent me a tax return for 2012/ 2013 because although I've been down here for 6 1/2 years I've only this last year rented out my UK "home". The form seems very daunting, is it doable for a non- tax minded person or is it too full of pitfalls.

Thanks, Alan.

Hi Alan

Will leave how difficult the UK tax return is for another person, but be aware of the following NZ tax implications:

1. You have to include the UK rents in your NZ tax return

2. You can claim certain rental expenses in the NZ tax return

3. If you have a UK mortgage, exchange movements on the mortgage are generally taxable/deductible

4. If you pay any UK tax on the net UK rents, this tax can generally be claimed in NZ against the NZ tax liability on the net UK rents.

I have clients in your situation, so am familiar with the NZ issues.

[alan999]

Thanks for the info. My wife is still in the Uk and oversees the rental, living with our son. All transactions are in UKP to UK bank account etc. so all expenses and such are within the uk self assessment return, or hopefully will be! Is there anything to stop us putting all the rental income in my wife's tax return? After all she is the one with all the hassle.

Alan.

[chrisl34]

Thanks for the info. My wife is still in the Uk and oversees the rental, living with our son. All transactions are in UKP to UK bank account etc. so all expenses and such are within the uk self assessment return, or hopefully will be! Is there anything to stop us putting all the rental income in my wife's tax return? After all she is the one with all the hassle.

Alan.

Hi Alan

The income (and expenses) must go with whoever owns the property. If it is owned 50:50, then only your half would go into your NZ return. If your wife owns the property 100%, you wouldn't need to enter anything into your NZ tax return. If you own the property 100%, all income and expenses should be included in your NZ tax return in NZD.

Chris

[alan999]

Thanks for that info Chris. If things get too tricky I'll be in touch. Whereabouts do you live?

Thanks, Alan.

[chrisl34]

Hi Alan

The income (and expenses) must go with whoever owns the property. If it is owned 50:50, then only your half would go into your NZ return. If your wife owns the property 100%, you wouldn't need to enter anything into your NZ tax return. If you own the property 100%, all income and expenses should be included in your NZ tax return in NZD.

Chris

Hi Alan. I live on the North Shore of Auckland. Chris

[louiser]

Hi Alan,
Should be do-able, but I guess it depends on your exact circumstances.
We've filled one in for the last couple of years. Never done one before we came to NZ and rented our house out in the UK for 2 years before selling.
Neither of us are particularly financially astute but there's a massive booklet that comes with the form (or can be requested) that makes it manageable.
Since we were both overseas, we claimed for non-resident's tax relief for the start and noted that on our tax return each time.
We just needed to total up how much rent we'd received, how much we'd paid on the mortgage and how much we'd received in interest on our UK bank accounts (ha! about 2p).
Then divide each by 2, write them in the boxes on the form, sign & post.

We sold up at the start of the latest tax year - hope we've only one more round of form filling to go!