Tax on Income from inherited home

[Michael2374]

Hi,

My mum has been left a home in the will of her best friend. There is no contest to ownership as there were not any other relatives of the deceased.

The plan is to rent the house out and the question is around how much tax will be paid? For example we are planning to rent it to a local authority for £1,200 per month - are we liable to pay tax on the full income as there isn't any mortgage payments??

And are there any other taxes to be paid on it - inheritance tax??

Thanks in advance.

[section 44]

are we liable to pay tax on the full income as there isn't any mortgage payments??

Your mum will be required to pay tax on the full profit.

[Michael2374]

are we liable to pay tax on the full income as there isn't any mortgage payments??

Your mum will be required to pay tax on the full profit.

Thanks Section - does inheritance tax apply?

[Peter D]

What is the total size of the estate. IHT is part of the estate it is not your Mum's responsibility. Regards Peter

[Michael2374]

What is the total size of the estate. IHT is part of the estate it is not your Mum's responsibility. Regards Peter

Thanks peter - i believe relatively small - house worth approx 350k and some small share holdings and savings approx 15-25K

[Peter D]

What is her husbands status. Regards Peter

[Michael2374]

What is her husbands status. Regards Peter

She is widowed..

[Peter D]

Assuming he left everything to his wife then there will be two sets of NRB so no IHT.
Stop saying "we" it is not your house it is your Mums so it will be your mothers income. What are the LA going to do with the property ? Regards Peter

[Michael2374]

Assuming he left everything to his wife then there will be two sets of NRB so no IHT.
Stop saying "we" it is not your house it is your Mums so it will be your mothers income. What are the LA going to do with the property ? Regards Peter

Thanks peter - i say we as i am managing it for my mum - what is NRB?

the council just provide us tenants on minimum two year fixed agreements at 1200 per month (we) are responsible for the management/upkeep/repairs on the property.

[Peter D]

Nil Rate Band. NRB. Regards Peter