My mother has died recently. The house is bought in my name. My brother would like to stay there as a single tenant (I live elsewhere), and I will charge him £300 per month (he pays all bills). What are the tax implications for me?

Arthur Weller replies.
You are going to be in receipt of £3,600 gross rental income per annum (i.e. 12 x 300), which will be added onto your other income - investment income is usually the highest part of a person's taxable income. Any part of the income that falls below the higher rate threshold of £46,350 is taxed at 20%, and any part that falls above £46,350 is taxed at 40%. There are no National insurance contributions on this income. For rental income you look at each '6 April until 5 April period' separately.