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I am a landlord by inheritance - wow

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By accident of interlocking wills, I find myself receiving a small three figure annual rent on my share in a few acres of agricultural land. Believe it or not this situation has been created by the Married Woman’s property act, the general abandonment of primogeniture, with an intestacy in the mix.  

I am told that my 1/8 th beneficial interest is via a bare trust.

This rental income is, I think, well within the zero rate band for property income, but should I report it on my Self Assessment tax return, so that HMRC can confirm that there is no extra tax to pay ? 

Comments

  • theartfullodger
    theartfullodger Posts: 15,691 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Declare, and also get valuations (file copies) for any CGT when it is transferred or sold several years in the future.  HMRC fines are to be avoided. 

    Know anything about the law and regulations of agricultural tenancies?  I humbly suggest some knowledge will be cheaper than the alternative (ignorance...) no offence..

    Congratulations and best wishes.
  • RAS
    RAS Posts: 35,536 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    First, is the property subject to an agricultural tenancy?

    Secondly, make sure you fully understand them for the country in which the property is located. I'm not sure about England but I know someone in Scotland whose neighbour acquired the right because the owner failed to keep the neighbour's flock off the land. 
    If you've have not made a mistake, you've made nothing
  • John_Pierpoint
    John_Pierpoint Posts: 8,401 Forumite
    Part of the Furniture 1,000 Posts
     Yes it is an agricultural tenancy in England, but that is a whole different can of worms, probably involving IHT new rules every time a trust beneficiary dies.
    Sent from Outlook for iOS
  • John_Pierpoint
    John_Pierpoint Posts: 8,401 Forumite
    Part of the Furniture 1,000 Posts
    I checked my self assessment guide (2024 version) and it said do not declare property income less than £1,000 ? 
  • poseidon1
    poseidon1 Posts: 1,337 Forumite
    1,000 Posts First Anniversary Name Dropper
    I checked my self assessment guide (2024 version) and it said do not declare property income less than £1,000 ? 
    That sounds feasible. Where you have no expenses to claim against your rent you get a standard expense allowance of £1,000 which either reduces the taxable rent, or in your case wipes out the rent entirely.
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