Tax onj rental income

Stubod

Hi,

A couple of questions if I may.

Myself and sister have recently inherited a house. We are looking to rent it out and share any rental income.

I do not currently have any other income, so would I have to pay any tax on any rental income?

My Sister has a job and pays tax at 20%, bur her spouse doe not work as they are retired. Would there be anything preventing them registering the house in his name so as to minimise any tax?

Thanks for any feedback.

theartfullodger

Stubod wrote: »

..............I do not currently have any other income, ..........

Really? Nothing to spend on food then.

No pensions, no benefits no nuffink?

If on benefits - I presume you mean this - you must inform the relevant authorities (not always the same office for each benefit..) of your new asset & any income when it arrives.

How much, roughly, is it worth, likely total rental per month?

Ever had any training in how to be a landlord?

da_rule

If your yearly income exceeded your income tax personal allowance (£11,500 per annum from April) then you'd need to fill in a self assessment and pay the relevant tax.

In terms of your sister. She could transfer her share to her husband, or you could do a deed of variation, whereby she gives the property to he husband. The deed of variation varies the will, so it is treated as if your sisters husband inherited the property.

Even if you don't have to pay tax, if any of you are on any sort of benefits the income will have to be declared.

Stubod

Ta for the replies, and answers to the questions as follows..

Income.....I have no income.....absolutely "nuffink"....(no pension, no benefits), I am currently living off savings (and an understanding wife).

Rental income.....we are looking at £450 per month total rental income....(ie £225 each less agent fees).

Landlord training......we are renting through an agent.

da_rule

I've just read something on the Gov.uk website that says that you must fill in a tax return where your untaxed income exceeds £2,500. Not knowing your agents fees, you may be under this, but on a straight split of 50/50 of the rent, you'd be receiving £225 a month which is £2,700 a month.

There's a helpline you can call to check whether you need to fill out a return if your income is below the £2,500 limit.

G_M

Stubod wrote: »

Landlord training......we are renting through an agent.

Then read this:

* Letting agents: how should a landlord select or sack?


and then read this:


* Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Topics covered:

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* Repossession: what if a LL's mortgage lender repossesses the property?

* New landlords: advice, information & links

Stubod

Hi Da..and many thanks for the reply....I will check out the helpline as you suggest.....