Tax payable on rented property

[Mayday]

Hi my husband has been left a small house in the country by his parents, we are going to rent out the property, we are new to this and wonder if we can put the proceeds of the rental income straight to our daughters account for her college fees bypassing our accounts? Are we still liable to pay tax on the income this way?

 

[mathepac]

Yes.

 

[dub_nerd]

Under certain conditions you can claim tax relief against money paid for tuition fees in the year you pay them. But you are definitely liable for tax on your unearned income from rentals. The two things are not connected and must both be accounted for.

 

[Ravima]

dub _nerd is correct. Two separate matters. Tax IS payable on rent and there MIGHT be tax relief on the fees.

also, don't forget to register for PRTB and to pay any LPT. Failure can be very expensive later on.

 

[dub_nerd]

dub _nerd is correct. Two separate matters. Tax IS payable on rent and there MIGHT be tax relief on the fees.

also, don't forget to register for PRTB and to pay any LPT. Failure can be very expensive later on.

... and, of course, to pay CAT on the inheritance.