Moving In With Elderly Mother In Law

[V8 Disco]

Hi, after a generally healthy life, sadly my mother in law (85) has been diagnosed with Altheimers' and mild dementia. She is widowed and is just about coping on her own at the moment, however my wife and I think that soon we'll need to move in with her to care for her full time. She has her own property and there is plenty of space for us, so renting out our own home and moving in with her is entirely feasible. We have briefly considered a retirement home for her but we feel that the unfamiliar surroundings would be too distressing for her. My question is, what are the implications of this arrangement from HMRC's perspective?

In case it's relevant, Mrs V8 has two brothers and power of attorney has been sorted. There is no mortgage on the MIL's house.

I know that I will have to pay tax on the income we get from renting out our own property, however the income would cover our relatively small mortgage.

Any advice/suggestions/'Gotchas'?

TIA.

[Simpo Two]

Well done to you; it's not going to be easy. I think you will qualify for Carer's Allowance which is about £3k a year.

[Eric Mc]

If you have a mortgage on your own property, you will need to notify the lender that you intend to rent it out. You will also need to notify insurers too.

Is your own home jointly owned with your wife? If it is, any rental income received will be split equally between the two of you and you will each complete and submit your own self assessment tax returns after the end of each tax year to cover your separate share of the rental profits.