Main Residence Exemption Bill Passes Senate

The removal of the Main Residence Exemption was passed by the Australian Senate on Thursday 5th December 2019 which will see the Main Residence Exemption entitlement removed for Australian expats.

Australian expats who currently live overseas and own a property that was a former Principle Place of Residence (PPR) will now need to make a decision with regards to the property which could potentially see large tax bills arising if it is your intention to sell the property while overseas.

You now have to decide to sell your property before the 30th of June 2020 to retain either a full or partial entitlement to the Main Residence Exemption or to retain the property until you return to Australia as a resident for tax purposes.

Now that the bill has passed both the lower and upper house we await for it to receive Royal Assent.

Should you wish to discuss in further detail to see how these changes impact you please call an office local to you or send an enquiry via our website.

Let Property Campaign & Disclosure to HMRC

The UK’s Let Property Campaign, is a campaign run by HMRC for individuals who have undisclosed income in relation to rents received.

The Let Property Campaign gives you an opportunity to bring your tax affairs up to date if you’re an individual landlord letting out residential property in the UK while your are overseas.

If you owe tax or not on your letting income you’ll need to tell HM Revenue and Customs (HMRC) about the income you haven’t declared by making a voluntary disclosure or by registering for the Campaign.

Should you owe tax to HMRC due to your undisclosed rents and to obtain the best possible terms or settling these liabilities, you must tell HMRC that you wish to take part in the campaign. Once registered you then have 90 days to calculate and pay what you owe.

Who can take part?

You can report previously undisclosed taxes on rental income to HMRC under the Let Property Campaign if you’re an individual landlord renting out residential property;

* renting out a single property

* renting out multiple properties

* a specialist landlord, eg student or workforce rentals

* renting out a room in your main home for more than the Rent a Room Scheme threshold (https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme)

* living abroad and renting out a property in the UK

* living in the UK and renting a property abroad

* renting out a holiday home even if you use it yourself

You are not able to use this scheme to declare undisclosed income if you’re a company or a trust renting out residential property or if you’re renting out commercial property.

You may have become a landlord for many different reasons; you might not even think of yourself as one. This could be because you’ve:

* inherited a property

* just rented out a flat to cover your mortgage payments

* moved in with someone and need to rent out your house

You may have simply misunderstood the rules or been told differently.

Whether your errors were due to misunderstanding the rules, or you deliberately avoided paying the right amount, you should notify HMRC now rather than wait until they uncover the errors.

Should you wish to discuss further and take part in the Campaign or make a voluntary disclosure please call a GM Tax office local to you or submit an enquiry via our online enquiry form on our websites www.gmtax.com.au or www.gmexpattax.com

2018 UK Tax Returns Late Filing Penalties – £10.00 per day penalties to be avoided

Should you have missed the 31 January 2019 filing deadline you will have automatically received a late filing penalty of £100.00.

If your return is still outstanding as at 30th April 2019 a further penalty of £300.00 will be incurred and £10.00 daily penalties will commence from 1st May for up to 90 days or until submitted.

Act now to avoid incurring additional late filing penalties, we at GM Tax can assist you with your electronic submission of your UK Tax Return.

How do I register for Self Assessment

Should you need to lodge a UK Tax Return with HMRC and this is your first time you will need to register for Self Assessment, how you do so depends on your circumstances. You can use a form SA1 if you need to register but you’re not self-employed. For example, if you:

* become a company director

* receive income from land and property in the UK whether you are a tax resident or a non tax resident

* have taxable foreign income of more than £300 a year

* receive yearly income from a trust or settlement

* sell shares as a tax resident or sell a residential property as a non resident or tax resident or other assets liable to Capital Gains Tax

* have yearly income over £100,000

* have untaxed income that can’t be collected through your PAYE tax code

* have income over £50,000 and you or your partner carry on receiving Child Benefit payments

* have Capital Gains Tax or Income Tax to pay

Please contact an office local to you should you require any assistance with your UK Tax Return or registering for Self Assessment or alternatively you can submit an online enquiry via our website.

 

Do I need to do a UK Tax Return?

Yes you will need to lodge a UK Tax Return for the period 6th April – 5th April if you were:

* self-employed as a ‘sole trader’ and earned more than £1,000

* a partner in a business partnership

* a director of a UK Limited Company

You will not usually need to send a return if your only income is from your wages or pension and your income is taxed at source or covered by your personal allowance. However, you may need to send a Tax Return to HMRC if you have any other untaxed income, such as:

* money from renting out a property

* tips and commission

* income from savings, investments and dividends

* foreign income

Please contact an office local to you should you require any assistance with your UK Tax Return or alternatively you can submit an online enquiry via our website.