Tax credits and share holdings

lee_rees

I was wondering if my girlfriend is entitled to claim tax credits, I tried phoning the tax credits helpline but they were clueless.

So here goes..

My girlfriend earns £32k a year but is about to be made redundant. She currently has made £6k profit from some shares which I've transfered over to her.

Would she be entitled to claim tax credits if she works a few hours a week for me at less than the entitlement threshold despite owning and making £6k from shares?

I am self employed and not entitled to any benefits, I've also maxed out my CGT and ISA allowances.

Also, she has not used her ISA allowance, could I strap some more shares into a self invested ISA for her or would this effect her entitlement to the tax credits? She owns a house which is mortgaged, I have my own house.

If her entitlement is £0 because of her earnings so far what about next tax year as there will obviously be no £32k just income (profit) from her share holdings.

GlasweJen

tax credits are assessed on a couples joint income so your earnings will nullify any tax credit award.

lee_rees

GlasweJen wrote: »

tax credits are assessed on a couples joint income so your earnings will nullify any tax credit award.

I do not earn income taxable earnings as they are all from capital gains and thus I pay CGT rather than income tax, therefore my earnings are not counted as income.

My question is will her share holding counter any tax credit allowance if her income is zero upto the tax credit allowance threshold.

To put things more simply, can she hold shares, profit from shares and claim tax credits.

nannytone_2

you taking the pee or what?

GlasweJen

I think this is a question for the tax credit help line sorry