Hi All,
Hoping to pick the collective brain! OH & I have a flat here in the UK & in order to avoid the mortgage redemption fee & sooth my mothers "burning bridges" mentality, we are hoping to rent it out - possibly only until the redemption fee period is up or maybe longer..........
My question is this:
As I understand it, as the mortgage is jointly held the income is also joint. Therefore the £6k we earn is split & because its under the (current) £4,000ish personal allowance neither of us are liable to pay income tax to everyone's buddy Gordon.
I had a look at the HMR&C website and it mentioned that there is a Double-Taxation Agreement with NZ and as far as I can figure, tax in the UK is waived in favour of income tax in NZ. Where I understand there is no personal allowance
Naturally I don't want to pay the higher rate in NZ (preferably I'd rather not pay any tax at all, but there you go) if I can.
Does anyone have any experience of this?
I also understand there is a way of offsetting agents fees against tax but it seems a mute point if I have to pay it in NZ - surely charges in one country can't transfer to another????
Any help is gratefully received as we're going round in circles trying to figure out whether we'd be better off selling up before we go over & take the [unwelcome] hit.
Thanks in advance,
Beano