Clive Smaldon

Not HMRC...Your parents MAY be able to claim UK personal allowances under terms of DTA (depends on nationality/where resident etc so not in all cases), which letting agents dont take in to account, and/or there may be costs not dealt with by agents. Regardless, it is usually better to receive the rent gross (NRL forms), complete the SA return annually and then pay HMRC rather than paying tax at source throughout the year. None of that affects the fact that a SA return is required each year for income from property as landlords outside of the UK.

Ooops, thats 18%/24% not 28%...I jumped back a year

Not HMRC...there is a box on the self employment pages specifically to enter "CIS deducted". As you havent entered this, the easiest way for you to rectify is to submit an amended return with all of the same information but this time with the CIS figure paid entered this time. (Box 81 on page SEF5)

Hello David. Noted re the IHT. The situation is that if the estate is selling the property then you need to do a CGT return on behalf of the estate, in this situation it goes on the estate CGT return only, not on any of the beneficiaries returns. If the property is divested there would need to be a CGT return for each of the beneficiaries. Under no circumstances should you put the full amount of the estate gain on your own return, You would only complete your own CGT return if the property is divested to you and the other beneficiaries first. Whilst 4 CGT returns might seem excessive if divested, each benefiicary could claim their annual CGT allowance against the gain if not used elsewhere, which is not possible within the estate, though this needs to be balanced against whether or not the gain would then split in to 18%/28% for any of them versus the estate amount. You could be paying more tax by selling the property in the estate than needs to be paid, or you may not be, but determining this is not possible without income details of the beneficiaries and knowing whether any of them use the annual CGT allowance elsewhere.

Not HMRC...no, because, on the return, you show the calculation again, AND complete the box on the CGT pages with the amount of CGT tax already paid. When you complete a CGT return you can only estimate your income so the CGT is an estimated figure based on the amount of BR available before higher rate CGT, when the return is completed it confirms your income for the full year and there may be additional CGT due or a repayment of CGT, depending on how good the estimate of income was when the CGT return is completed. To confim, CGT return first, based on bast estimates of other income, SA return later, confirming CGT figures and amount paid and accurate figures of income known.

Not HMRC...this is dependent on whose name the property is being sold. If it is being sold within the estate then there is one CGT return and one calculation...and it needs to then form part of the estate tax return also. I note there are 4 beneficiaries. What often happens in this situation is the property is divested from the estate in to the beneficiaries individual names before sale, meaning that each beneficiary can then use their own CGT allowance (so £3000 exempt x 4, if the individuals are not using their allowance elsewhere for the year) and the rate of tax can then be lower for larger gains (dependent on beneficiaries other income), but this may not be the case here. You should speak to your solicitor as to whether it may or may not be beneficial to remove/transfer the property from the estate prior to sale or not, but will need to know your siblings other income estimate for the year to determine this.

Not HMRC...as the 2nd company has paid you under PAYE this is also employment, you cant show this separately as self employed/freelance income, so you will have two sets of employment pages, one for each. If there are allowable expenses these are also claimed against the second employment on the employment page. You would only show the health benefit on the SA form if you have a P11d, meaning it hasnt gone through payroll, if its gone through payroll its already been taxed and doesnt need to be shown separately.

Correct, no income tax for you on receipt...only thing I'd say is in such circumstances many people keep the "potential" IHT to one side in case the giver passes within the 7 years, so as not to deprive the estate/beneficiaries in that situation...however, ultimately, if the giver has factored that in and/or everyone is ok with the situation ultimately those funds are yours to do with as you wish.

Not HMRC...because a gift of £100k is treated as a potentially exempt transfer for Inheritance Tax, and it only becomes exempt to IHT after 7 years. Should the person giving you the money not survive 7 years the money will be added back to their estate to calculate any IHT payable. If the person survived less than 2 years the estate is liable on the full amount of the gift, between 2 years and less than 7 then a tapered amount is added back.

Not HMRC...this is potentially horribly tax inefficient, your wife needs to talk to a local IFA re pension/investment advice...