Quick answer
While the estate is being administered, the personal representatives deal with the rent, and personal representatives are exempt from MTD. Once the property passes to you, the rent is your property income and counts towards your own MTD threshold.
Key facts
Personal representatives are exempt from MTD
Once the property is yours, gross rent counts towards your threshold
A first rental property is a new income source
If you later sell, CGT uses the Inheritance Tax value or market value
During the estate
Executors and administrators handling a deceased person’s affairs are on HMRC’s list of automatic exemptions. Rent received by the estate is dealt with by them, not through your MTD records.
When it becomes yours
From the date the property passes to you, the rent is your income. If you already let property, it joins your existing UK property business. If it’s your first let, it’s a new income source. See starting a new business or income.
Will it put you over the threshold?
Add the gross rent to any other property and self-employment income. Inheriting a property let at £1,800 a month adds £21,600 a year. On its own that’s over the £20,000 threshold that applies from April 2028, based on your 2026/27 return.
Start date | Qualifying income over | Based on your tax return for |
|---|---|---|
6 April 2026 | £50,000 | 2024/25 |
6 April 2027 | £30,000 | 2025/26 |
6 April 2028 | £20,000 | 2026/27 |
Inheriting with siblings
If you inherit jointly, only your share of the rent counts. See MTD and jointly owned property.
If you sell later
For Capital Gains Tax, the starting value is usually the value used for Inheritance Tax, or the market value if you don’t know it. See selling a rental property.