Just moved back from the UK so just trying to figure out how to handle my tax affairs.
Historically I submitted a tax return in each country and declared to both authorities my taxable income/losses.
Coming back, the bonus is that Australia still has negative gearing plus interest expense on a rental property is 100% tax deductible.
In the UK, you can only deduct a maximum of 20% interest expense, which means many landlords are paying higher taxes now.
Does this mean that by shifting my tax affairs for the UK property income/expenses to Australia, I can claim full interest deductions?
Ps. My family has an accountant who is very proactive/quick learner, but do you think I should find a firm that specialises in UK/Oz tax or is it straight forward to pick up?
You can negatively gear overseas property, yes.
As an Australian resident you are taxed on your worldwide income. You can't run two different sets of books, one for the UK and one for Australia. Your Australian tax return needs to include all your income from everywhere, but this will include allowable dedications too.