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 TaxRobin Your Own Question
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17635
Experience:  International tax
Type Your Tax Question Here...
TaxRobin is online now

My mother has a flat in her name which is left to me in her

This answer was rated:

My mother has a flat in her name which is left to me in her will and she says is mine. I lived in the flat for 10 years but have now let it for two years. Last year I declared this income on my tax return, is this correct. Plus if I declare this income will the net rental circa £8k a year still be classed as gifted by my mother and have to pay tax on it again when she passes away.
Hello and thank you for allowing me to assist you.
If you do not own the property then claiming rent would not be appropriate. The rental of the property is taxed to your mother unless she turns the property over to you now.
This is not your income because you do not own the property.
Customer: replied 3 years ago.

Does this mean that the rental I am receiving will be taxed after my mothers death then? As stated after expenses it amounts to some £8K per annum I am receiving. I am concerned I will get a hefty tax bill when my mother dies (hopefully in many many years time)

No, it means your mother should be reporting the rental. The money to you would fall under the PET. The 7 year rule applies.
Gifts always use up the Inheritance Tax threshold first before the value of any other assets or property that the deceased left.
If the total value of the gifts that the deceased made is more than the Inheritance Tax threshold (£325,000 in 2014 to 15 tax year), tax will be due on all of the gifts that brought the total over the threshold.
TaxRobin and other Tax Specialists are ready to help you