Thank you for your clear response. I apologise for not realising that this is an “accountants only” site and will exit forthwith!
Just to add, I don’t mind paying for expert advice but the advice already received from an accountant is that all forms of income must be shared by the owners in the ratio of their ownership shares. This is not supported by the Gov.uk website although it’s not absolutely clear. I posted here because it would have been nice to have a second opinion, and also because this may be a question that accountants are asked more in the future.
Would it be acceptable to HMRC if our son paid us a market rent for our half and then then ran his Airbnb enterprise on his own behalf? That way we wouldn’t have to get involved in the Airbnb revenue, costs and profit at all.
That's great news, it would certainly simplify things. The property is continuing to be let and we are gifting our shares to our wives at the end of this financial year.
So if I understand you right, it will be sufficient for my brother and me to declare the income on our returns for 15/16? Would the £20-ish interest be ok on my wife's return as it will be included on the tax certificate for her deposit account?
The estate is to be divided equally between me and my brother. As the executor the income has come to me but hasn't been used. I've made one return of capital to both of us. My mother died in July 2015 and probate was granted in November. The IHT has been paid. Virtually all the income since July has been the rent which amounts to about £7500.
Please let me know if there is anything else that's relevant.
Many thanks for the explanations, I'm now starting to understand a little bit! Presumably as my expenditure on carpets was made in 2015/16 it has to be claimed in that year rather than being deferred into 16/17?
My answers
Thank you for your clear response. I apologise for not realising that this is an “accountants only” site and will exit forthwith!
Just to add, I don’t mind paying for expert advice but the advice already received from an accountant is that all forms of income must be shared by the owners in the ratio of their ownership shares. This is not supported by the Gov.uk website although it’s not absolutely clear. I posted here because it would have been nice to have a second opinion, and also because this may be a question that accountants are asked more in the future.
I must have misunderstood. Isn’t this somewhere where questions can be asked and experts, if they wish to, can give answers and advice?
Unfortunately no, but thanks for your interest!
Would it be acceptable to HMRC if our son paid us a market rent for our half and then then ran his Airbnb enterprise on his own behalf? That way we wouldn’t have to get involved in the Airbnb revenue, costs and profit at all.
Thanks for the replies. If we decided to assign 90% of the annual profit to our son, would we have to provide any justification to HMRC?
That's great news, it would certainly simplify things. The property is continuing to be let and we are gifting our shares to our wives at the end of this financial year.
So if I understand you right, it will be sufficient for my brother and me to declare the income on our returns for 15/16? Would the £20-ish interest be ok on my wife's return as it will be included on the tax certificate for her deposit account?
Thanks.
Sorry, let me add what you need.
The estate is to be divided equally between me and my brother. As the executor the income has come to me but hasn't been used. I've made one return of capital to both of us. My mother died in July 2015 and probate was granted in November. The IHT has been paid. Virtually all the income since July has been the rent which amounts to about £7500.
Please let me know if there is anything else that's relevant.
So should I go ahead and claim on a renewals basis? It would be for around £1500 rather than £1000 on the w&t option.
Many thanks for the explanations, I'm now starting to understand a little bit! Presumably as my expenditure on carpets was made in 2015/16 it has to be claimed in that year rather than being deferred into 16/17?
So that will include carpets? or don't we know yet!