Letting inherited property near Poynton - salary concerns?

[Pickering]

Hi I inherited a property near Poynton a few months ago and have decided to rent it out and split the income between myself and my sister. I was wondering how this would work tax-wise? I understand money coming from property is taxable just like a normal job, but what about if it's immediately split? Will my sister pay income tax on it? How do we even pay tax on it? I just can't work out how it will go. I've checked sites like this salary calculator and because the tax bracket I'm in I would pay much more tax than my sister, which wouldn't work if we were to split the income and it was all taxed on my name (owner of the house). Where should I go for advice?

[POYNTONIAN 1]

Contact John Williams of Williams Cooper for tax advise 01625 872160

[Freewheeler]

There's some info here that may help: https://www.taxinsider.co.uk/1045-Joint ... rm_17.html

and plenty here: https://www.gov.uk/guidance/income-tax- ... se-studies

I'm no expert, but it seems like you would have to change the ownership of the property by giving your sister a partial share of the house in order for her to receive a rental income directly from it (for tax purposes). If you alone own it then all the income is classed as yours and taxed accordingly.

[lostcat]

You will need to register under Self Assessment. Keep a record of all the income and expenditure, there is no need for full accounts. You might find it helpful to employ an accountant to do this for you if you are not aware of all of the allowances etc.
If there is gas in the property you need an annual gas safe check appx £75 and any plugged in appliances should be PAT tested pre move in.
Take out landlord insurance. Directline have a good policy. Use an estate agent for finding a tenant but negotiate the fee, never pay the full price.
If you can , manage the property yourself. An agent will take 10% of the income for basically ringing up a tradesman and sending you the bill

The tax is down to you unless your sister actually owns some of the property.
Income from property jointly owned by people who are not married or in a civil partnership is taxed according to actual shares owned.