Is this income for child tax credit purposes

Paula_Jones_8691

Hi. I have recently got divorced and I live alone with my two children. I have maintenance from my ex husband and I claim child benefit.

As part of my divorce settlement I received some shares which I have sold to give me money to complete the sale of my house and to carry out home improvements.

I receive a dividend on the balance of the shares I have left which I know is classed as income for child tax credit calculations.

But the money I used to buy my home Is this classed as income for child tax credit purposes?

Any advice would be appreciated

tyllwyd

I would have guessed that it is your part of the capital that you possessed as a couple within the marriage, not income as such (but I have no knowledge so please don't take my word for it!)

xylophone

The shares were part of the marital capital assets that were divided on divorce? You sold some of the assets you received in the settlement to buy a home.

Capital is not income - you can receive income on capital.

http://www.hmrc.gov.uk/leaflets/wtc2.pdf