What way do i pay tax on this situation?

Hi,

This will be a bit long winded but bear with me!

I moved into a house owned by my Mam 7 years ago just after selling our house in 2005. We paid rent and also took on the renovation of the property coming in at about 36,000. Recently we decided it was time to buy a property again and we did so.

Now my Mum is going to rent out the property for 800 euro a month and give me 400 of that each month to repay all the money we spent on it as it was not very livable when we went there first.

Anyway how do I pay tax on this? I don't work but my husband does and he has my tax credits. Do I do a self assessment form at the end of the year or would my husband be better doing it?

Any info would help.

I take it you have no interest in the property at present other than the money you spent doing it up?
Essentially you have given a loan to your mother to do up the property. She is now repaying the loan to you. The repayment of a loan is not taxable so no need to worry.

So what way would that leave my mum? Would she need to pay tax on the full 800 or just the 400 that she would retain herself?

naomhbooboo said:

So what way would that leave my mum? Would she need to pay tax on the full 800 or just the 400 that she would retain herself?

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It's her house and her rent. The 800 a month belongs to her, so she's taxable on it. If she decides to give 400 a month to you it's unrelated to her receipt of the rent.