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taxadvisor.uk, Chartered Certified Accountant
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My mother has an overseas property which was passed on to

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My mother has an overseas property which was passed on to her when my father passed away. Shortly after his death she added me as a joint owner to this property as being the only heir remaining. She has been declared as UK tax resident in the year for tax purposes. I myself am classified as UK tax payer as well. Back to the property, even though we are joint owners she is still taking 100 percent of the income. My first question is how is this declared on the self assessment? Do we have to both declare 50% as joint owners or do I declare 100% on her self assessment and nothing on mine? From my understanding is that you can declare it as how we receive income however I am not sure.My concern for the above is that if we declare 100% on her form and nothing on mine, will this be a problem when it eventually comes to Inheritance tax if she were to pass on. Could HMRC add on 100% value of the property to the estate as I had not declared that we were joint owners on my self assessment?Thanks.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Let's look at each tax separately -

Income tax

If your mother is taking 100% of the income, it is alright for her to declare the whole income on her self assessment tax return. You have a beneficial interest in the property .. it could be restricted to 50% interest for capital gains tax purposes only. Nothwithstanding the fact you have 50% interest in the property, you can have an arrangement with your mother that she gets 100% of rental income.

Inheritance tax

The income split has no bearing on percentage of ownership for inheritance tax purposes. Your share of the property is shown on the title deed at Land Registry records.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 4 days ago.
Thanks for your prompt response. Therefore just to be confirm I would not declare any foreign income on my self assessment.Yes please just a couple more if you do not mind. I wanted to know that when my father passed away I had to leave my job here in the UK and help my mother deal with my dad's estate in Malawi which required a bit of time out in Africa as you can imagine. During this time my mother would send some money to help up keep my some of my main expenses. Would this count as income? It was not regular, it was mainly to cover my mortgage and some living expenses as and when I needed it. Would I need to declare it depending on the amount I received? I do have some rental income in the UK that pays for other expenses.In addition on the self assessment form it also requires me to include cash figure that was brought into the country. Usually the practice is to exchange with the bank in the Malawi which we are declaring however sometimes we do exchange with individuals (friends mainly) which I am not sure if I have to declare. Would this figure also need to be included?
Thanks

Thank you for your reply.

Your additional questions are not related to te original question and therefore you need to put a fresh question.

You would not declare any rental income pertaining to property abroad as 100% of income is received by your mum and she declares it on her tax return.

Any monies given to you by your mum to fund your personal expenses whilst you were in Africa dealing with your dad's estate are out of scope of income tax. You don't report this as income on your tax return.

This is unrelated to your original question ---

In addition on the self assessment form it also requires me to include cash figure that was brought into the country. Usually the practice is to exchange with the bank in the Malawi which we are declaring however sometimes we do exchange with individuals (friends mainly) which I am not sure if I have to declare. Would this figure also need to be included?

I am not sure what form you are referring to. If the form requires you to state total cash that was brought into the country, then you should show total cash brought irrespective of how it was exchanged.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.

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Customer: replied 4 days ago.
Thank you for your help and answering my questions. Sorry I was referring to the self assessment form in the foreign income section.
Sure I will get that done straight away.

I thank you for accepting my answer.

Best wishes.