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Best Option for rent
Haze77
Posts: 20 Forumite
Hi,
My friend is getting incapacity benefit, income support and housing benefit. Living with partner and children in rented accomodation.
His parents are willing to give him a property with the condition that he cannot sell it. They cannot live in that property for some practical reasons.
Is there some way he can rent out the property that his parents give him and pay the rent he receives towards the rent of his rented home?
His housing benefit would obviously be reduced but how will his other benefits be affected?
Many Thanks in advance.
My friend is getting incapacity benefit, income support and housing benefit. Living with partner and children in rented accomodation.
His parents are willing to give him a property with the condition that he cannot sell it. They cannot live in that property for some practical reasons.
Is there some way he can rent out the property that his parents give him and pay the rent he receives towards the rent of his rented home?
His housing benefit would obviously be reduced but how will his other benefits be affected?
Many Thanks in advance.
0
Comments
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Rental income would be deducted from his Income Support and would, I imagine, entinguish entitlement to that benefit.
Why cant he live in the house even if he cannot sell it?0 -
He cannot live there because it is far away from where they are living now and his children are all settled into schoold etc.
How would it affect his Incapacity Benefit and Childrens Tax Credits?
Thanks.0 -
It will be ignored for IB purposes - not sure about CTC.He cannot live there because it is far away from where they are living now and his children are all settled into schoold etc.
How would it affect his Incapacity Benefit and Childrens Tax Credits?
Thanks.
Why cant the house be sold though? Is it being held in trust or something?0 -
As far as I know and this obviously should be double checked on the DWP website, Incapacity benefit should not be affected because its not means tested, neither should the Child Tax Credit. The Income Support though is paid as a top up i.e it is paid as the Incapacity Benefit paid is not sufficient according to the law to live on. As you will be receiving extra income from the rental of the property your Income Support would be lost altogether. Like I said though this all needs to be double checked on the DWP website as everybodys' circumstances are different and also no figures have been mentioned either.0
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The one benefit to take a big hit I imagine would be his housing benefit - as he would own a house! Is this the parents home that they are wanting to hand down to your friend now to avoid any inheritance tax etc. when they pass along?0
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