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: 15707
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

My dad was born in 1933, my mum was born in 1944, they

Customer Question

Hi
My dad was born in 1933, my mum was born in 1944, they have been married 50+ years.
They receive the state pension, interest on bank savings, money invested in stock market, a small private pension and rent out a property for approx. £1000 per month less expenses. They live in an owned property, therefore they have 2 properties in total (no mortgages), one of which is rented out.
What is their combined personal tax allowance?
Are there special rules on the sources of income stated above? My dad thinks some of the private pension is tax free (£3000 per annum allowed?)
Submitted: 7 months ago.
Category: Tax
Expert:  TonyTax replied 7 months ago.
Hi. Take a look here for personal allowances for the 2016/17 tax year. Each of your parents is entitled to a personal allowance of £11,000 for 2016/17. That means the first £11,000 of their respective incomes should not be taxed. As your father was born before 6 April 1935, he will be entitled to the married couiples' allowance which could reduce his tax by as much as £835.50 per annum (£8,355 @ 10%) but no less than £322.00 per annum (£3,220 @ 10%). If one of your parents has insufficient income to use all their personal allowance, they can transfer up to 10% of it to their spouse so long as the receiving spouse is not a 40% taxpayer. Read about that here. As the rental income is paid without deduction of tax at source it should be reported to HMRC in self-assessment tax returns along with their other income details. I'm not sure where your father has got the £3,000 figure from. I hope this helps but let me know if you have any further questions.
Customer: replied 7 months ago.
Thanks.
The rental property is in joint names - do my parents fill in a joint SA Tax Return or do they do one each?
Expert:  TonyTax replied 7 months ago.
They should complete individual tax returns so the rental income should be split on a 50:50 basis unless it is actually owned in proportions other than 50:50 and HMRC are notified on a form 17.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions