selling my business and tax credits

long_tall_sally_2 · 5 May 2011 at 10:39AM

I am thinking of selling my business which would mean receiving a lump sum of around £155,000.00.
This would be used to pay off the motrgage and also many debts atributable to the business that would have been sold.
How would receiving this sum effect the tax credits and child tax credits that we currently receive? (we have two kids age 6 and 7).

Oldernotwiser · 5 May 2011 at 2:04PM

Tax credits will be affected by the income you have after the business is sold, rather than the money you receive from the sale.

ManicMum · 5 May 2011 at 2:07PM

would you be liable for CGT? just as offshoot there.

System · 5 May 2011 at 2:43PM

I don't think that you would be able to pay off your mortgage unless you are in arrears as that would be considered deprivation of assets.

zagfles · 5 May 2011 at 7:05PM

!!!!!! wrote: »

I don't think that you would be able to pay off your mortgage unless you are in arrears as that would be considered deprivation of assets.

For benefits it might, it won't for tax credits as there are no capital rules.

selling my business and tax credits

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