Tax credits - is capital from house sale considered an income?

Queenied

Hi

Any help on this issue would be greatly appreciated.

I think i would be eligible for tax credits as i have a child under 1. However I know they are means tested and i want to clarify what 'income' includes in a particular instance.

I know that savings themselves aren't included - although interest from these savings is considered - but what about money / income from a house sale?

I recently sold my house (principal residence so no CGT) and got about £40 grand back. However only about £17 grand of this was equity ( the rest was due to a smallish mortgage as i had put down a big deposit when i bought it).

So basically, is any of this considered income and therefore would it affect my eligibility to tax credits? If this is considered income am I correct to presume that only the capital / equity itself would be considered income?

Many thanks in advance for any advice you could offer.

Damzel_In_Distress

As far as i was aware any money you have is taken into account

I might be wrong,but i dont think i am as my grandad and nan were recently doing this and they had to much money in savings apparently...

saving or money from sale of a house doesnt really matter-money is money if its in your bank is it not??

[Deleted User]

Capital is not treated as income. Only the interest earned from the capital is classed as income.

Queenied

Thanks for taking the time to reply. I'm still not completely sure of what's counted as income so it's probably best I contact HMRC to find out the score!

[Deleted User]

you will have to declare any interest over £300 a year,as far as i know,but best to confirm it with them

whitewing

I am 99% certain that your house money would not affect tax credits, except for any interest you earned on it thro having the lump sum in savings.

Confusedconsumer_2

Queenied wrote: »

Hi

Any help on this issue would be greatly appreciated.

I think i would be eligible for tax credits as i have a child under 1. However I know they are means tested and i want to clarify what 'income' includes in a particular instance.

I know that savings themselves aren't included - although interest from these savings is considered - but what about money / income from a house sale?

I recently sold my house (principal residence so no CGT) and got about £40 grand back. However only about £17 grand of this was equity ( the rest was due to a smallish mortgage as i had put down a big deposit when i bought it).

So basically, is any of this considered income and therefore would it affect my eligibility to tax credits? If this is considered income am I correct to presume that only the capital / equity itself would be considered income?

Many thanks in advance for any advice you could offer.

Go to www.adviceguide.org.uk - look under benefits and/or visit/phone your local Citizens Advice Bureau