Inheritance of rental property

My dad passed away last year and I inherited his rental property. What do i need to do?


So there are two main periods involved -

  1. First Period from April of the year of death to the date of death and

  2. Second Period is the estate administration period from date of death


For the first period, a tax return for your dad will need to be completed for his rental (and any other) income


For the second period, things are a bit more complicated.


If any of the following conditions are met, a formal trust and estate tax return (SA900) will be due:

  1. Your dad's estate is worth more than £2.5 million at the date of death, or

  2. At least £500k worth of assets per year have been sold by the estate administrators or

  3. Total tax due from income or capital gains exceeds £10k during the administration period


If the above criteria are not met, then all that may be required is the preparation of a schedule showing the income arising


Want to know more?

t: 020 3603 2309

e: team@tax121.co.uk

© 2020 by Tax121.

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