Tax on a rented property

Tax on a rented property

Author
Discussion

Leroy902

Original Poster:

1,540 posts

104 months

Wednesday 25th May 2016
quotequote all
This may sound like a dozy question, but if tax from a rented property is treated like income tax, does that mean you're entitled to the same personal allowance (£11,500 I believe), and it's whatever profit made above that amount that is taxable?

63 years old (not me), been a housewife all her life, gets a company pension via her husband who's passed away, and has 2 properties, 1 she lives in, and 1 she's renting out.

The basic maths is that you add it all up (pension and rent), whatever she makes above 11k is taxable at 20%?

Edited by Leroy902 on Wednesday 25th May 06:56

Leroy902

Original Poster:

1,540 posts

104 months

Wednesday 25th May 2016
quotequote all
A 63 years old (not me!), she's been a housewife all her life, gets a company pension via her husband who's passed away.

She has 2 properties, she lives in the first with her elderly mother-in-law that she takes care of, and rents out the second property, BUT the house she rents has her 2 sons and 1 daughter's names on the deeds as the owners, even though they have no part in any of the financing of the property.
The rent gets paid into her bank account.

How is the tax on property worked out?

Because she gets very little in pension, the total in rent and her pension totals lower than the £11.5 tax allowance, but do her kids, who as I mentioned haven't got any part in the financing of the property, in or out, have any baring on this?



Edited by Leroy902 on Wednesday 25th May 07:54

Leroy902

Original Poster:

1,540 posts

104 months

Wednesday 25th May 2016
quotequote all
Getting a solicitor to look over it all is probably the best idea.
Thanks for the help.