Inherited property rental income tax

Hi, I have inherited a property and have been renting it out. I finally attained Probate in December and am about to change the name on the title deeds to my own. My couple of questions are.. 1: Am I correct in thinking the tax due is from the estate and this is from the date rental income began until I attain Probate or is this until the name is changed on the title deeds? 2: My 2 daughters were left a small provision in my Mother's will but she did not have enough savings for this to be fulfilled. Can these amounts be deducted from the rental income before tax is due from the estate? 3: Lastly How do I declare to HMRC the rental income that will now be going to myself? Many thanks for any help and advice. Kind regards Aiden

Apologies also 4: as the property is managed by an Estate Agent are their charges tax deductible? Many thanks

Hi ,
 

Thank you for your questions. If income is made form the property during the lifetime of the estate this is income received by the estate and not your own income from property. Your second question is not pertnent to income from property but the income form property belonging to the estate is not your daughters income and cannot be extracted form the income arising from the estate. The income you receive from property rental i.e from the date of probate needs to be declared on a self assessment tax return. Any agents fees arising in the outgoings of running your rental income can be claimed against any profit  . Thank you  .

Hi and many thanks for your replies - much appreciated. Can I just ask whether the agents fees/outgoings for the property can be deducted from the estate for the purposes of that tax bill or does that only apply to my finances after probate? Kind regards Aiden

Hi Aidey G,
The fees are tax deductible as an expense.
Whilst the property was in estate they would be applicable to the SA903.
Any fees occurred after the property was in you name can be claimed on the SA105.
Thank you.