tenancy and income tax

[semisane]

Hi dont know if anyone can help.

Girl-friend is renting house off her cousin's mother - he has a lasting power of attorney for his mother who is in a nursing home. The cousin has said the tenancy needs to end in May as "He said it was because when his mum dies and they inherit the house an income tax charge is added after 9 months of renting as they see it as income (when the house is sold it’s taken into account )"

I would have thought the income would be taxed anyway unless not being declared

Hope it makes sense - is this the case / not sure if that is enough info ?

Thanks in advance

[Simpo Two]

This may be about income relating to care home fees, rather than for tax.

[alscar]

Not sure this all sounds quite right and may be a mix of both correct and incorrect information ?
As LPA his correct use of such is to have only the interest of the donor at all times in mind for any decision making and when Mum passes the LPA is effectively cancelled and then the Executors take over.

[jonsp]

Ending in May means plenty of time to find somewhere else.

Would it cause significant problems for her finding somewhere else?

[semisane]

Hi thanks for the feedback.

Girl-friend is on mates rates for the rent and money tight so finding something affordable will be difficult and availability v short. Ideally she would like to stay until the mother passes and house sold....

Not sure if he just wants her out.

[Armitage.Shanks]

Perhaps he's focused on the Renters' Rights Act that takes effect in May which affords greater protection for tenants and AST agreements no longer apply. I've not read it in depth but i believe post May the only way to get a tenant out is through the courts for tenancy breaches (non payment of rent etc) or if the house is going to be sold and the requisite notice period is given. If she's recently moved in she is protected from May for the first 12-months of occupation. Otherwise 4-months notice needs to be given to move out.

There's a reason a lot of landlords are looking to offload rental property driven by the RRA and increased bureaucracy. The tenant has the upper hand, albeit the new legislation will just drive up rental costs. Info Here