Sam Tax Expert A lady of 85 years old has a rental profit from a rented property relating to the last 2-years. Her personal allowance for the year 2013-2014 is £10,000 approximately. The rental profit from the property is approximately is £4000.00 to £5000.00 1) If she draws state pension only and no pension credit, would it cause any affect in calculating her tax liability. As the income is still below the P/Allowance, which means she has not to pay any tax. 2) If she draws pension then we will have take in accoount the amount over the threshold and pay tax on it. Please clear the murky area in both the cases. With regards, ***** *****
In the second question, I meant to type Pension credit and in that question "credit" somehow got omitted. Any way, thank you very much. SAM 100050 does answer practically all the answers.
Mohan J Mitra