ex has 2 rental properties does this count towards assessment ?

PlayingHardball

chall1964 wrote: »

Payments for the use of a property that is not the NRP's main residence are taken into account as other income, unless the NRP is s/e. In which case the income is treated as part of the gross receipts of the business. If the NRP is not s/e, the amounts to cover income tax, mortgage interest, interest on loans for repair/improvements, council tax and water charges can all be deducted from the amount received as rent.

The agency can investigate and adjust if an asset is being underused ie; an investment producing less income than is reasonable.

Thank you, you clarified what I meant. I know income is taken into account, but I meant the CSA wouldn't be bothered if the NRP didn't make a profit.

And do you know the significance of 8% in these circumstances?

johhnyrotten

The 8% is a figure layed down in the rules. It takes into accout the house going up. if you had an extra house worth say £140,000 with no mortgage then 8% X £140,000 = £11200, /52 = £215 / week. This is classed as income. No ifs no buts. FACT

bdt1

Johhnyrotten - just interested, what if you had an extra house, mortgage outstanding was £140,000, but due to falling market, etc, it was only valued at £120,000, and attempts to sell the extra property still only brought in offers of £120,000 and below? So selling not viable!

There would be no 65k (or any) equity in such a property, and if rental income only just covered the mortgage, then for tax purposes there would in effect be no rental income from the property either? This would be apart from outgoings needed in the form of repairs/maintenance/building insurance etc etc, which would also be associated with such a property.

In reality how would the CSA deem this? I suspect they would still try and sting the owner for something, but what?

PlayingHardball

chall1964 wrote: »

Payments for the use of a property that is not the NRP's main residence are taken into account as other income, unless the NRP is s/e. In which case the income is treated as part of the gross receipts of the business. If the NRP is not s/e, the amounts to cover income tax, mortgage interest, interest on loans for repair/improvements, council tax and water charges can all be deducted from the amount received as rent.

The agency can investigate and adjust if an asset is being underused ie; an investment producing less income than is reasonable.

Hi, so does the last sentance above mean that when the CSA are looking into a variation based on 'assets', the CSA could take the 2nd property into the equation when assessing the amount the NRP should pay for chld support, even if the property is not being rented out. (which is the case of my ex who keeps his second foreign home for his holiday enjoyment only a couple times per year, therefore he won't voluntarily support his child here because he can't afford it! (he says)