Depreciation and interest

I have rental income from my property in australia and I'm wondering if im able to and if so how to add in appreciation value into my foreign rental income on my self assessment ? Also if interest on my mortgage is allowed to be included into my self evaluation for my foreign income? I've read that interest isn't accepted on a UK rental property but in the foreign income section there's an option to add interest on a mortgage for rental property? As interest is deductible on my Australian tax return does that mean it's allowed for UK tax return?

Hi,
When you prepare your UK Self Assessment return you have to ignore what you put on your Australian tax return and start with your gross Australian property income and deduct only what is allowable in the UK. The guidance on replacing domestic items is here:
Allowable expenses
You can also see information guidance on the paper SA106 notes:
Self Assessment: Foreign (SA106)
No, as interest is deductible on your Australian tax return it does not mean that it is allowed in the UK. You can however add your residential property finance costs in box 24.1. This will give you a deduction 20% of the lower of either the finance costs, property profit after deducting losses brought forward or your adjusted total income. We take the tax that you have paid in Australia into account in box C and box 28 page F4. 
Thank you

Hi, thanks for your response. Im still a little confused as box 36 - residential financial costs. It says "the costs of getting a loan or alternative finance to buy a residential property and any interest on such a loan or alternative finance payments can be used to calculate a reduction in income tax" "Put the amount of any costs, interest and alternative finance payments in the box" Does this not mean I should enter the amount of interest paid on my mortgage for this tax year into box 36? Thankyou.

Hi ,
 

Yes the box is number 44 not number 36 you can enter the full amount of interest paid on your rental property mortgage but you do not get a deduction for the full amount.  You get 20% of the lower of either your entries in box 44, the profits of your property business or your adjusted total income .

Thank you .

Thankyou for your help. I have one further question.. As I moved to the UK on the 3rd of June do I need to declare my foreign rental income from the 6th of April up until the day I moved to the UK even though I was still living in australia ? I've read that split year treatment case 4 relates to my situation in some way. Do I disregard those 2 months prior to moving to the UK for my tax return ? Thankyou

Hi,
If split year treatment applies to you, then you only declare your non UK worldwide income from the date you arrived in the UK. From that day, you declare all of your worldwide income and capital gains.
Thank you.