How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15914
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

At the moment my husband and myself have pension credit.i

Resolved Question:

hello,at the moment my husband and myself have pension credit.i have been left a flat by my late father who rented it out at £695 per calendar month less 6% agent fees.we wish to continue this to give us an income as we will lose pension credit .also we will have something to leave our son. my pension is £90.42 per week as i do not have full entitlement and my husbands is £135.18 per week.my question is would it be better to have the flat put in just my name (as it was left to me) or in both our names for tax reasons and will the new pension allowances make any difference .thank you mrs k l mcbride
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Is the only source of income that you each have other the rental income your state pensions? Which pension allowances are you referring to?
Customer: replied 1 year ago.
hi yes this will be the only income we will have.the pension allowances at moment is pension credit but this will stop when property is signed over by land registry.
Expert:  TonyTax replied 1 year ago.
Thanks.
How much of your pensions is pension credit?
Customer: replied 1 year ago.
the amounts i sent are pension without the credit amount
Customer: replied 1 year ago.
hello do i sit here or wait for an email?
Expert:  TonyTax replied 1 year ago.
OK, thanks.
In the current tax year you will receive £4,702 and your husband will receive £7,029 in taxable state pension. You each have a personal allowance of at least £10,600.
Assuming that you have only just started receiving the rent, you may as well leave the property in your name until the start of the new tax year on 6 April as you won't pay any tax on 3 months rent.
For 2015/16, it might be as well to put it into joint names as that way, you will each use more of your personal allowances of £11,000 and your husband will pay little if any tax. If it stayed in your name and you have no expenses other then the letting fees, you might pay a little tax but either way there's not much in it.
Take a look here for information on letting expenses:
http://www.which.co.uk/money/tax/guides/tax-on-property-and-rental-income/allowable-expenses-and-allowances/
There is information on tax here:
https://www.gov.uk/renting-out-a-property/paying-tax
I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
thank you for that,i think i will put it in joint names.there shouldn't be much tax to pay. if i have need of more advise i will come back
Expert:  TonyTax replied 1 year ago.
OK. Thanks and good luck with the letting.
TonyTax and other Tax Specialists are ready to help you

Related Tax Questions