In form IHT403, what is definition of Rents in section for gifts out of regular income?

anjo56

I have a rental property and am assembling records for IHT403 under the section on gifts out of normal income.  Am not clear if Rents means actual rental paid or is the net income after expenses as it is defined in Self-Assessment.  Have checked Guidance and can't find anything specific.  Can anyone clarify for me please? Thanks. 

eskbanker

I'd have thought that the rent itself would be in the 'rents' section of the income schedule, and the relevant expenses included within the expenditure section below it, e.g. mortgages, insurance, bills, 'other', etc, but wouldn't have thought it matters for IHT purposes if it all nets to the same thing?

anjo56

It would amount to the same thing but netting off means I could just lift the amount from my Self Assessment return rather than having to add the expenses to all my other everything expenditure. Thank you.

Bookworm105

it means you are declaring the source of your income so that the total you had available is transparent.

As such "rent" means net profit from your lettings business since that is the amount of money available to you to from which to fund a gift. Expenditure incurred in arriving at the net profit is irrelevant since that is your own cost, not expenditure you paid on behalf of the gift recipient.

anjo56

Thanks very much also.