no longer being a landlord + tax

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  • PoGee
    PoGee Posts: 558 Forumite
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    Sea_Shell said:
    PoGee said:
    Thanks for replies. I'm divorced. The will does equalise estate. But hope someone can advise re whether allowing kids to live rent free in properties that have been generating rental income, will cause any issues with my own income tax, kids income tax and perhaps rent free being considered as gifts. They want to move in in late 2024.
    So, how would that work, if the one living in the dearer house "owes" the other?

    Are you planning for your estate to have enough cash to enable them to equal split?

    Eg Cash plus "little" house= 50%
    "Big" house = 50%
    My own residence will sort that, I think. I want a stress free retirement. I love them to bits but I feel they don't understand what it means to budget, paying bills, keeping on top of everything, tidying up after themselves....being a grown up.
  • PoGee
    PoGee Posts: 558 Forumite
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    molerat said:
    There will be no tax problems, you will simply be receiving a reduced income and declaring it.  You may have to carry on completing SA, they don't seem to react to changes in circumstances very quickly and there may of course be some questions over the reasons for the sudden reduced rental income but that will be easily explained.
    Thanks molerat, that's what I was hoping for. I'll keep doing tax returns as you advise.
  • Sea_Shell
    Sea_Shell Posts: 9,338 Forumite
    First Anniversary Photogenic Name Dropper First Post
    PoGee said:
    Sea_Shell said:
    PoGee said:
    Thanks for replies. I'm divorced. The will does equalise estate. But hope someone can advise re whether allowing kids to live rent free in properties that have been generating rental income, will cause any issues with my own income tax, kids income tax and perhaps rent free being considered as gifts. They want to move in in late 2024.
    So, how would that work, if the one living in the dearer house "owes" the other?

    Are you planning for your estate to have enough cash to enable them to equal split?

    Eg Cash plus "little" house= 50%
    "Big" house = 50%
    My own residence will sort that, I think. I want a stress free retirement. I love them to bits but I feel they don't understand what it means to budget, paying bills, keeping on top of everything, tidying up after themselves....being a grown up.
    Will having their "own" place help, or will they still rely on you to sort everything out for them.   Will they value the homes as if they do own them?

    Who pays for maintenance and repairs, for example?  Insurance?

    Do you get the call at gone midnight if something breaks!?! 😉
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.31% of current retirement "pot" (as at end March 2024)
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