Rental income from jointly owned property

jjimjam

I'm not really sure how to deal with my parent's property and the rent income from it.  My father died early this year and his will left everything to my mother.   They jointly own a property which is still receiving rent from the tenant.   This is being paid into what used to be their joint current account.  They are tenants in common with unequal shares.   

My question is about the rental income.  Can my mother receive the total rental income from the date of death.  Or do I have to consider it estate income, pay the tax on that and then a R185?   That sounds like more faff and I wouldn't know what date to end that.

getmore4less

As the will leaves everything to your mother then the beneficial interest in the income is hers from DOD and  there is no IHT due to spouse allowance.

Mother can just remove your dads name from the legal ownership leaving her as sole legal owner and assume beneficial ownership from DOD. 

HMRC probably be happy with the rental income not going on the administration income return and for your mother to include it in her income tax returns.

 

jjimjam

Thanks very much.    That all sounds straight forward.