Tax Liability for parents Renting their house

billcabra

Registered User
Messages
3
Hi all,
Parents are thinking of renting their house( no mortage) and relocating to live with me.
At what rate will they pay tax on the income and how does it affect their state pension medical benefits if at all.
Mother late 70s father 81.....any advice or pointers much appreciated.
Thanks,
Billcabra
 
The rental treatment will be treated as income and taxed accordingly. Depending on their pensions and the rental income, there may be no tax, or probably not more than 20%
 
Unless they have other income/pension (other than the state pension) it is unlikely that they would go over the tax exemption level
Max State pension x 2 = E24,000 approx
Exemption for over 65's = E40,000
Would the rental income after allowable expenses be greater than E16,000

By the way their benefits (electricity, telephone and TV) can be transferred to your home but they will need to inform SW and make a new application
 
thanks for the advice....yearly rental income about 16k but in todays climate prob 14k