Can I manage the renting of my mothers house?

by Readers Question

10:29 AM, 29th July 2015
About 3 years ago

Can I manage the renting of my mothers house?

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Can I manage the renting of my mothers house?

My mother recently moved in to the granny annex in our house. We have had to agree that she pays rent for the flat as she refused to move in otherwise. She is going to rent out her house with the idea that she will then use this to pay us.manage

Is there a way that I can take over the management of the flat so that I have the tax liability and she doesn’t have to pay any tax. She has a full pension from her job as a Nurse so if this does become an income she will have to pay tax on it.

Has anyone had a similar situation and any advice on the best way to manage this.

Many thanks

Ken



Comments

Neil Patterson

10:36 AM, 29th July 2015
About 3 years ago

Hi Ken,

I know spouses that charge management fees to spread the tax liability, but it does have to be a reasonable amount similar to what Letting agents will charge.

Don't forget though you would also have to self assess the income for yourself so it may not be worth the hassle.

Lynne Davis

13:18 PM, 1st August 2015
About 3 years ago

Another possibility would be for her to gift the house to you in lieu of paying rent - especially if ultimately you're going to inherit it anyway. It could also prevent the house from having to be sold to pay for care home fees (assuming that she lives long enough for it to be excluded from her estate).

We did something similar, where my in-laws gifted their house to us and we remortgaged it to finance the purchase of a retirement flat which had my husband's name on the deeds along with his parents'.

Ken A

8:51 AM, 3rd August 2015
About 3 years ago

Thanks Neil and Lynne, it is my first time posting so I should have given a bit more information on the situation. The house is going to be left to my nieces and nephews, so gifting it to me is not the obvious way. Also I already self assess as I am self employed and already have a rental property so that wouldn't be additional work.


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