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Where Taxpayers and Advisers Meet

Balancing different tax year UK vs. Australia

Posts: 4
Joined: Sun Sep 13, 2015 8:54 pm

Balancing different tax year UK vs. Australia

Postby CuredHam » Sun Oct 04, 2015 5:47 pm

I have a question with regards to calculating the tax for my overseas rental income. So the base situation is as follow:

- Domicile: Australia
- UK resident for taxation purpose
- Property in question: in Australia

I bought this property recently and now generating income that I'd like to declare in UK in arising basis.

Now since the Australian tax year is not the same with UK, how do I "equalise" this? For example, the Australian tax year ends on the 30th June. So do I have to maintain a month-by month rent vs expenses spreadsheet?

Likewise how do I correctly apportion the tax already paid in Australia? Since the tax is paid once a year, how do I even start to equalise this?

Does anyone know if it's possible for me to just treat it as a single summary number based on the Australian tax return? That means some of the income & expenses actually happened in the previous UK tax year.

Posts: 6538
Joined: Wed Aug 06, 2008 3:22 pm

Re: Balancing different tax year UK vs. Australia

Postby King_Maker » Mon Oct 05, 2015 10:46 am

These are the sort items you will need to consider when completing your UK Tax Return

1. Check the provisions of the UK-Australia Double Tax Treaty.

2. Convert the P&L figures from AUS$ to £Sterling.

3. Apportion the Australian accounts for the relevant UK Tax year - e.g. for 2014-15 it would be ~ 9/12ths x 2015 a/cs plus 3/12ths x 2014 a/cs.

4. Check to see that the accountancy principles are the same.

5.Check to see that the property tax(es) paid are the same.

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