Tax credits and capital gains

wenlouwoo

I became a sinlge parent to three children in 2011 after some time at home as a stay at home mum. I began part time work and claimed tax credits/ working tax credits until I can return to full time work as a teacher.

Part of my almost completed divorce has seen me recieve £28,500 from two surrendered endowments which I used to move to a smaller house and release my ex husband from the mortgage. My new house is owned entirely by me and I have a mortgage on it. I have £8000 savings remaining. My interest on the savings I had and still have after tax amount to £150.

Is the amount of money I've recieved counted as capital gains? Or is it a savings investment? Do I need to declare it on the 'other income' section for the tax credits declaration form? Beginning to panic slightly since the money was used to move house and accomodate my change of circumstances. I hadn't even considered that it would be taken into account.