Confused and new

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  • Confused and new

    Hi, apologies if this is not in the correct area. A few years ago my father inherited a property when my nan died, it took a number of years to go through probate for various reasons, but we have now decided to renovate it and rent it out (mainly to avoid the council tax bills we have accumilated!)

    The property is currently in the name of my father and my aunt, my father will next year buy the property off my aunt and own it outright. My father has a pension and works part time, so we would like to put the house in my mothers name, as she doesnt work. Who would be the best people to talk to about this, accountants or solicitors?

    We would also like to try and avoid further inheritance tax charges, as we have just paid 40% on the property, so is it possible to put the property in my mother and my brothers name, but only my mother pay tax on the rental income?

    Finally my parents home, if we wanted to avoid inheritance tax on this, what is the best way to do this, or would it be an accountant or solicitor we would need to see?

    Sorry for the probably dumb questions, but we are new to this, and due to become landlords a little by accident! Thanks for reading.

  • #2
    A tax advisor will be able to help you.

    Its probably better to make a calculation depending on your father's taxable income, the level of the rental profits etc to decide whether its worth to transfer to your mather's name.

    For inheritance tax purposes, again, it depends on the total value of the estate (£650k for both your parents together).

    I suggest you go to see an accountant or a tax advisor

    Comment


    • #3
      A tax adviser (sic) will help you. There will be more than one way to achieve this, and there are several possible outcomes from a tax perspective.

      To enable me to help you more please provide:

      1. Value of property today
      2. Value of property at probate
      3. Costs incurred on renovation since probate
      4. Value of your parents' combined estate

      Comment

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