New Landlord - Advice Please - Moving to Australia

movinghelp

Really sorry but I don't understand your post? Could you explain? We have had an asking price offer and progressed to reference checks so want to make sure we're completely prepared as we have about 6 weeks now until we move out.

booksurr

movinghelp wrote: »

Really sorry but I don't understand your post? Could you explain? We have had an asking price offer and progressed to reference checks so want to make sure we're completely prepared as we have about 6 weeks now until we move out.

hapylucky is referring to you letting ("renting out") the property not selling it - depreciation is a cost which the Australian Taxation Office allows against their income tax, HMRC does not.

Therefore potentially there will be a difference between your taxable profit for HMRC purposes (net of UK personal allowance) and your taxable profit for Aus purposes. Hence the need to ensure that the depreciation list is documented whilst you are still in the UK and able to document what it applies to in case the ATO demands details to support your calculation. If your tax due on the Aus calculation is higher than that due on the UK calculation you will pay the UK what it is owed and pay the difference to Aus. Hence the need to ensure the Aus figure is as low as possible so that there is no excess and no tax due to Aus (on top of any payable to the UK)

https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Investments,-including-rental-properties/Rental-property-expenses/

movinghelp

Ah, I see. Thanks for the link. I think I might need to sit down with an accountant or a financial advisor to get some help before I go as this isn't something I've had to deal with before.

booksurr

movinghelp wrote: »

Ah, I see. Thanks for the link. I think I might need to sit down with an accountant or a financial advisor to get some help before I go as this isn't something I've had to deal with before.

if you do then get one familiar with Aus tax as well as UK tax since the rules are rather different or at worse a UK one who you can tell to read the link I mentioned above as the principles will be familiar to any accountant and they should be able to work it out accordingly

movinghelp

Okay great, my sister's best friend is an accountant and her husband is Australian so she's going to give me a recommendation for someone to speak to. Openrent have drafted a contract which I'm just comparing against the government AST.

movinghelp

Just a quick one but for things like the EPC certificate and How to Rent leaflet do I just need to provide copies to the two tenants or to the tenants and the guarantor?

G_M

guarantor does not need thosedocuments, only the tenancy agreement (before they sign).

Make sure the guarantee is Executed properly as a Deed.

movinghelp

Great, thank you. Also they've asked if we would be willing to leave any appliances behind (hoover, microwave, toaster, kettle) which I'm happy to do but obviously don't want to get these tested by an electrician as second hand value of all 4 is less than £100. Should I just leave this as a goodwill gesture and leave them off the inventory?