Rent-a-room scheme, deceased landlord

Trusts Discussion
1

Good morning

I am dealing with the administration of an estate. Mum held a property as tenants in common with her son. Mum died. Her share of the property did not pass entirely to Son. Son continued to occupy, and rented out rooms under the rent-a-room scheme, and the total was below the taxable threshold.

We are being sent Mum’s share of this total. Please can people here advise whether they think that is a taxable receipt for the estate, or can the estate share the rent-a-room reliefs?

Thank you in advance.

Fiona Dodd
Mayo Wynne Baxter

2

Hi Fiona,

The Estate can’t claim rent-a-room because it has to be claimed by an ‘individual letting a room in their home’. I assume from your wording that the letting commenced after her death.

I guess this issue then is how the rent is shared. The calculation of the amount due to the Estate should be before rent-a-room allowance and then the Son claims relief on his share.

I hope i’ve understood your query correctly.

Lucy Orrow (now TEP!)
Lambert Chapman LLP