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Posted Sun, 07 May 2023 12:43:55 GMT by greg_au
I was living in Australia but have returned to the UK and have I started renting out my Australian home from Jan 2023. In Australia I must declare and pay tax on the rental income. The Australian tax year is from 1st July 2022 to 30th June 2023. I understand I must declare the income in the UK also. For the UK tax year 6th April 2022 to 5th April 2023, I can work out the rental income and deductions for that period easily enough. However, I'm not sure what to do about the foreign tax credit. As of 5th April 2023, I won't have actual paid any tax in Australia. I do know that I will be taxed by Australia at the non-domicile rate of 32.5% though. So do I just work out that amount myself and put it on my UK tax return?
Posted Fri, 12 May 2023 12:15:51 GMT by HMRC Admin 5
Hi,

As the tax return is not actually due until 31/1/24, you will have declared and paid your taxes in Australia to then work out the correct figure that applies for Jan 23 - 5/4/23.

Thank you.

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