Will We Pay Tax on Rental Income?
My partner, her brother and her sister were left their mother’s house in her will when she passed away. With the current housing market being as it is they are reluctant to sell and are considering renting out the property, as at the moment the property is standing empty and will be costing them money in council tax etc. We have been informed the rental value could be around £400 per calendar month. We’re unsure whether we would pay tax on this. All owners of the property are working and pay tax at a lower rate.
The gross annual income from the property will be about £4,800 (£400 * 12), before allowable expenses, like council tax. This is about £1,600 to each partner. After deducting allowable expenses, each partner will pay 20% income tax on the net amount.
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