savings and tax credits?

freeride

Hi all,

We have just had an offer on our house and we are thinking about taking the offer and moving into rented accomodation for a year or two until the economy picks up. If we sell we will have around £75,000 in savings.

Does anyone know if this money affects our chance to claim working and child tax credit? I can't find any information on the HMRC website. I'm a self employed carpenter currently earning around £15,000 per year. My wife is currently un-employed.

Any thoughts

Thanks
F

exil

Capital doesn't affect tax credit. However interest on savings does count as part of your income.

Indie_Kid

exil wrote: »

Capital doesn't affect tax credit. However interest on savings does count as part of your income.

It's taxable income (so nothing in an ISA) above £300 PA that counts.

http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/other-income.htm

adj_2

Just to agree with the previous reply...we were in a similar situation as yourselves a couple of years ago. We were told by tax credits people that it all depends upon the amount of interest you will be earning on the savings. If you call the number on the tax credit paperwork they can advise you.