iNHERITANCE TAX ON RENTED PROPERTY

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in AAT member discussion
Hi everyone

I have a client who's aunt has died. she was living in rented property free of charge for a long time (20+ years). My client has been told that there may be inheritance tax due on the property from her estate.
Does anyone know about this, what it will be based on (value of property at death, years of occupation etc) or is this information incorrect? I believe her furniture is still there, so it was unfurnished and was her main residence.

Peugeot? anyone?

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:iNHERITANCE TAX ON RENTED PROPERTY

    Can't say I've come across this before. I believe if a property is rented by an employer or family member free or below market value the person renting it is assumed to have the value of rent not paid charged as income and taxed on it (or something like, not too up on my personal tax at the moment). If the aunt has been renting it free of charge with no assumed income for 20+ years I guess there may be an assumed untaxed income debt to be included in her estate.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:iNHERITANCE TAX ON RENTED PROPERTY

    Thanks. Anyone else have any thoughts on this or know where I can find out more?

    I did email ATT with query (& also asked if they have a student discussion forum) but no reply as yet.
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:iNHERITANCE TAX ON RENTED PROPERTY

    Hi Heather,

    I can't help you on this as I have never come across this before either. But have you tried the Revenue & Customs website?

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:iNHERITANCE TAX ON RENTED PROPERTY

    No, but I will now! Thanks

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