Council Tax Benefit affected by inheritance?

gordon_k

I've just inherited some money, with which I'm planning to buy a flat (I am renting at present).

I'm self-employed as a sole trader, and because my fledgling business (1 year old) is not yet earning very much, there's no chance of me getting a mortgage. So I'd need to buy somewhere outright - and knowing this, my dad is going to help out and top up the price difference for me.

While it will be amazing to have my own place, in savings terms this will leave me exactly where I am now - i.e. with not very much money at all, and having to budget pretty carefully!

So my query is: once I have bought the flat, will I then be eligible for council tax benefit, as I will have very little in the way of savings or income? Or will the fact that I had received the inheritance (and a further gift from my dad) mean that I'm not eligible for any reduction in this tax year?

karenx

It could possibly be seen as deprevation of capital. You have been given funds, used them all up in a very short space of time when its not been necessary then trying to claim benefits again. Surly it would be best to stay where you are, use the money for paying your way for a while till your business builds up then look into getting a mortgage. If its over 16k your housing benefit and council tax benefit will stop so you need to inform housing asap

seven-day-weekend

Or buy the flat and just pay the Council tax yourself. At least you will have the flat.

If you get a two-bed flat, you could have a lodger to help with the bills. You can charge up to £4250 a year in rent before you have to pay tax. See link below.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

gordon_k

karenx wrote: »

It could possibly be seen as deprevation of capital. You have been given funds, used them all up in a very short space of time when its not been necessary then trying to claim benefits again. Surly it would be best to stay where you are, use the money for paying your way for a while till your business builds up then look into getting a mortgage.

The thing is, it doesn't really make much sense for me to continue renting and thinking about a mortgage in a few years time, when my dad has (very generously) offered me the chance to buy somewhere outright, right now.

If need be I'll find a way to pay the council tax - I'm just trying to find out what the rules are on eligibility, so I can budget properly for the period ahead.