will i loose benifits if i buy a house?

housebuyer5002

a family member has recently died and now my parents want to buy me a house? morgage free...thank you:j but what taxes will I have to pay. as I am currently in rented accommodation and get working tax credit and child tax credit. will I loose all of this or not. there may be a simple answer to this but im no good at this money stuff and buying a house is very scary.:mad: please someone help. thank you.

NYM

You won't have to pay any taxes. A parent can give anything they like to their children.

However, if they die within 7 years of making the gift, the value of the gift is deemed to still belong to the parent, so it will be included in the valuation of their estate for Inheritance Tax.

jules888

Lucky you!Grab it with both hands!

Voyager2002

Assuming that you would move to live in the new house, then you would of course lose housing benefit since you would no longer be paying rent.

Do remember that you would no longer have a landlord responsible for repairing your place, and so would need to budget for occasion house maintenance expenditure.

Mojisola

Depending on the size of your parents' estate, there may be an inheritance tax issue for them if they were to die within the next seven years.

pebbles88

Why've you posted the same thing 4 times on different boards on here?

BigAunty

How is receiving a gift of a house scary?! It's a blessing.

Owner occupiers do not have the equity or value of the house taken into account for means/income tested benefits like WTC/CTC,income support, council tax discount or so on.

It isn't regarded in the same way as capital like savings or investments or a second home,for example. These are regarded as money that the owner can realise easily by selling them whereas a person who lives in their own property can only recoup the value by losing their home...

thorsoak

As you won't have to pay any rent, then obviously, you will no longer be entitled to housing benefit.

housebuyer5002

pebbles88 wrote: »

Why've you posted the same thing 4 times on different boards on here?

I wasn't sure where to post it so I could get the best advice.

housebuyer5002

Voyager2002 wrote: »

Assuming that you would move to live in the new house, then you would of course lose housing benefit since you would no longer be paying rent.

Do remember that you would no longer have a landlord responsible for repairing your place, and so would need to budget for occasion house maintenance expenditure.

thanks you. I don't get housing benefit but pay nearly £600 a month so that would go into the 'maintenance pot'.

housebuyer5002

Mojisola wrote: »

Depending on the size of your parents' estate, there may be an inheritance tax issue for them if they were to die within the next seven years.

would like to know more about inheritance tax if you have any info? if they die within the next 7 years(hopefully not) would I have to pay the inheritance tax straight away.If they leave me anything will it come out of that.just asking incase...so im prepared.thanks in advance