Housing Benefit advice please

tightperson

I am currently not working due to medical problems nor is my wife. When I am well again and able to work what will I be entitled to if we do the following.

We want to move to an area 200 miles away. We would rent out our current mortgaged house as selling is very difficult at the moment. The rent we would get would cover the interest on the mortgage and estate agent fees but not leave any over to provide any income.

1) If I then took a low salary in my new job and earnt £15,000 to be taxed as PAYE.
2) If the company also made contributions to a pension of £15,000 for me as I don't have much provision at the moment and not too many years to do so
3) My wife still didn't work.
4) We rented a house in the new area.
5) We have two children at school.

I assume we will get FULL WTC and CTC, my wifes DLA without any problem.

My main question is where we would stand on getting help with Council Tax Benefit and Housing Benefit on our new property where my job would be as on the CTB & HB form it asks about property you have and pensions. Even though we would have no left over income from the property we rent out how would this effect everything? Thanks.

seven-day-weekend

tightperson wrote: »

I am currently not working due to medical problems nor is my wife. When I am well again and able to work what will I be entitled to if we do the following.

We want to move to an area 200 miles away. We would rent out our current mortgaged house as selling is very difficult at the moment. The rent we would get would cover the interest on the mortgage and estate agent fees but not leave any over to provide any income.

1) If I then took a low salary in my new job and earnt £15,000 to be taxed as PAYE.
2) If the company also made contributions to a pension of £15,000 for me as I don't have much provision at the moment and not too many years to do so
3) My wife still didn't work.
4) We rented a house in the new area.
5) We have two children at school.

I assume we will get FULL WTC and CTC, my wifes DLA without any problem.

My main question is where we would stand on getting help with Council Tax Benefit and Housing Benefit on our new property where my job would be as on the CTB & HB form it asks about property you have and pensions. Even though we would have no left over income from the property we rent out how would this effect everything? Thanks.

They will not pay you Housing Benefit to rent a place if you own a property elsewhere. Several reasons:

A: If you don't live in it the value of the house is taken as capital , and
B: You could live in it yourself and not claim Housing Benefit.

It also may be counted as capital (or even income) for the purposes of Council Tax Benefit.

Your wide's DLA should be fine, I think the amount of tax credits would depend upon your income.

tightperson

seven-day-weekend wrote: »

They will not pay you Housing Benefit to rent a place if you own a property elsewhere. Several reasons:

A: If you don't live in it the value of the house is taken as capital , and
B: You could live in it yourself and not claim Housing Benefit.

It also may be counted as capital (or even income) for the purposes of Council Tax Benefit.

Your wide's DLA should be fine, I think the amount of tax credits would depend upon your income.

Thanks very much, I thought as much.

shjo558

They would count the value of the property, less 10%, less any outstanding mortgate.

Example - House Value - £100K with £80K mortgate

So £100K-10%-80K = £10K

The capital limit for Housing Benefit is £16 so it would really depend how much net capital you have.

The full value of the property would be disregarded in the event that you are renting your property to an elderly relative.

Hope that makes sense.