State Pension/benefits and inter-family rental payments

DiscoMaysie

All rent has been paid by bank transfer and is fully traceable since the date of the financial transfer for the shared ownership purchase.

From my perspective this was a low value 'buy-to-let' which helped my inlaws out in the process (and secured me a good tenant too).

bloolagoon

DiscoMaysie wrote: »

All rent has been paid by bank transfer and is fully traceable since the date of the financial transfer for the shared ownership purchase.

From my perspective this was a low value 'buy-to-let' which helped my inlaws out in the process (and secured me a good tenant too).

Did you pay tax on it, do you have insurance in your name?

DiscoMaysie

No tax to pay as the rent just about covers my costs for interest and share of maintenence costs.

No insurance in my name though.

lld01

You will have a difficult time proving to the council that this is not a contrived tenancy in the absence of a commercial tenancy agreement. In fact I think you will have difficulty proving that it is a "tenancy" at all.

Your MIL should definitely claim pension credit though if she only gets basic State Pension - she will also qualify for CTB.

pmlindyloo

I would be really interested to see if your MIL is allowed to claim Housing benefit.

As you say, no harm in asking.

Please let us know how you get on.

terryw

DiscoMaysie wrote: »

No tax to pay as the rent just about covers my costs for interest and share of maintenence costs.

No insurance in my name though.

Have you declared this to HMRC and produced annual figures to them?

Have you fulfilled all the other requirements of being a landlord like gas certificates?

DiscoMaysie

llD01
I have to agree with you really.
I know that what we have done is 100% genuine, but it will look a bit fuzzy when subjected to scrutiny from any HB assistance claim we tried to make. However genuine we may be!
CTB will be a huge help to the budget figures I have laid out for her, but she will still struggle I think.

pmll
I will keep you posted and let you know what they come back with. I wont be holding my breath though.

TW
All declared on my annual Tax Return.
No gas in the village, so no gas certificate required. Electrics are all signed off and still in date already.

terryw

DiscoMaysie wrote: »

llD01


TW
All declared on my annual Tax Return.
No gas in the village, so no gas certificate required. Electrics are all signed off and still in date already.

As this has been declared to HMRC this would appear to be evidence in your favour that it is a commercial tenancy.

The HB people are likely to ask if you would be prepared to follow through with possession/eviction procedures (as a landlord would with any tenant) if the rent is not paid.

elmer

As Big Aunty has already said as your MIL owns part of the property, she cannot claim HB.
It wont be a contrived tenancy as there is no tenancy as she owns part of the property.

elmer

fluffymovie

Your MIL owns 2/3rd of a property that she lives in. This means she will not be entitled to Housing Benefit for the £200 she was paying you.

She has other income related benefits open to her such as Pension Credit which she should claim and then perhaps she may be able to continue to repay the £200 pcm you ask for (or say that you may not ask for?)

However, I can confirm that she is not entitled to Housing Benefit for the address she lives in now.