deed of variation

slavs34

I recently inherited a house after my Mothers death. This house was being rented out and the rental income was going to my parents.
Once the property passes to me then I would receive the income. I'm in the fortunate position that I don't need the income and would prefer this to keep going to my father as it is a nice boost for his pension. The issue is that I could receive the rental income and give it to my Father but as I'm a higher tax payer then there be 40% to pay on the income. The solicitor said that we could do a deed of variation where we amend my Mothers will and the house passes to my Father he in turn would amend his will and then on his death leave me the house. It was explained to us that my father would also be able to use my Mothers remaining inheritance tax allowance that was not used so in theory the house could then pass to me free from inheritance tax as at the moment its below the threshold.
My question is if there is another way around this eg is it possible for me to inherit the house now and then say lease the house to my Father for a nominal fee so he continues to look after the house and receive the rent but I'm still the owner. Any advice would be greatly appreciated. Thank you

xylophone

Vary to give your father only a tiny portion of the house and split income to give 100% to your father? http://www.jonstow.com/income-tax-issues-with-ownership-of-rental-properties/

"People who are not married or in a civil partnership may own property as joint tenants in any respective proportion such as seventy-five twenty-five, but may split the rental income in a different way they have agreed between them, preferably in writing, if they have a disparity in their particular tax rates. Of course they may do this without regard to income tax tax, but the point is that they have considerable flexibility. For capital gains tax purposes, gains will follow the underlying beneficial ownership as outlined."