My client's father has to go into a care home due to illness. The only way to pay for the home is to rent his (the father's) private residence out and the rent will be subject to tax. Any advice on how to plan this so that no tax is payable? Your assistance would be much appreciated.
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only way to pay for the home?
If you think this is likely to be the last move they make, could they borrow against the residence, anticipating a sale on his demise? Many local authorities will provide finance on that basis and the interest should be lower than in 'equity release' schemes.
Or do both of course.
In relation to the rental income, take care not to allow the tax tail to wag the dog. Rental income, less the costs of collecting it, less tax on the difference, is still likely to be more than the income generated by leaving the house empty.