Council tax benefit when renting out property?

Alidee

I am a disabled person. When I was made redundant I couldn't afford to stay in my property so I rent it to my Cousin (by marriage). I tried to sell it but it was when the credit crunch hit and there were no buyers.

I now live rent free with my student partner/carer. I was a full time student last year but for health reasons have to go part time this year so cannot get student Exemption for council tax. I am worried that I will not get council tax benefit because I rent the property I cannot sell, even although my cousin pays the mortgage direct and I don't see any money or profit from him.

I only get IB and DLA for my income so couldn't afford to pay the £200 council tax for my current residence. I'm really really worried about this and the stress is really getting me down. I can't get a CAB appointment for three weeks and really need to have these forms
Sent in ASAP.

Can anyone advise me please?

[Deleted User]

couldnt your cousin get a mortgage in own name and buy the property off you?,sounds like it would solve a few problems

Torry_Quine

As the home you live in is your main residence then you could well be able to get council tax benefit. I presume your partner has let the council know they are a student so that you get the 25% discount. Is it £200 per month after this as that's a large amount. Is this form for council tax discount that you mention, if so complete it with the information you have.

Remember you will soon be changed from IB to ESA and undergo an assesesment for this and DLA is changing to PIP soon.

Notmyrealname

Alidee wrote: »

I am a disabled person. When I was made redundant I couldn't afford to stay in my property so I rent it to my Cousin (by marriage). I tried to sell it but it was when the credit crunch hit and there were no buyers.

I now live rent free with my student partner/carer. I was a full time student last year but for health reasons have to go part time this year so cannot get student Exemption for council tax. I am worried that I will not get council tax benefit because I rent the property I cannot sell, even although my cousin pays the mortgage direct and I don't see any money or profit from him.

Can anyone advise me please?

If it is a repayment mortgage, only the interest portion is a tax deductible expense so you would be deemed to make a profit even though the rent only covers the mortgage payment...for example:

Monthly mortgage payment £500 consisting of
Capital element: £200
Interest element: £300

Total income p.a £6000.
Total tax deductible expense £3600 (12x£300 interest)
Taxable Profit (and therefore declarable income) £2400.

Whether or not CTB will class it as income I don't know but I would be surprised if they don't.

Also a couple of other things:

1) Do you have permission from the lender to rent it out?
2) Do you have Landlords insurance on the property?
3) Do you get an annual gas safety check?
4) Have you informed HMRC you rent the property out?