Kept your flat in Sydney or your house in Wellington and rented it out? Once you're UK resident, the UK wants to know about the rent, and Australia or New Zealand still does too. Here's how it fits together.
How the UK taxes it
UK residents are taxed on their worldwide income as it arises, so the profit from your overseas rental goes on your UK Self Assessment return, converted into pounds. It's worked out under UK rules: rent less allowable costs such as letting agent fees, repairs and insurance. For residential property, mortgage interest isn't deducted as a cost: instead you get a tax credit at 20% of the interest. If you're a higher-rate taxpayer, that's less relief than you might expect.
Not paying twice
The UK has double tax agreements with Australia and New Zealand. The country where the property is can tax the rent first; the UK then gives you a credit for that tax against the UK tax on the same income. You pay roughly the higher of the two countries' tax, not both.
The option for new arrivals
If you moved to the UK in the last four tax years after ten years away, you can claim to leave foreign income and gains, including this rent, out of UK tax for those years. It's claimed on your return, and it costs you your £12,570 personal allowance for that year, so it's only worth it if the UK tax saved is bigger. The same goes for the relief on pay for days you worked outside the UK; the two can be claimed together, and you only lose the allowance once.
Worked any days outside the UK since you moved here?
If you moved to the UK in the last few years and travel for work, or work from home while visiting family, part of your pay may not be taxable in the UK. The free check tells you in two minutes whether it's worth claiming.
Do the free checkMaking Tax Digital
Since April 2026, landlords and sole traders with more than £50,000 of qualifying income (gross, before expenses) must keep digital records and send HMRC quarterly updates. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. For UK residents, foreign property income counts towards it.
Tax back home
Australia and New Zealand both tax rent from property there even when you live overseas, so you'll usually still file a return there. In Australia, foreign residents don't get the tax-free threshold, so tax applies from the first dollar of taxable rent. Check your position with the ATO or Inland Revenue, and keep records of the tax you pay there: you'll need them for the UK credit.
More for new arrivals: your first UK tax years.