How does buying a 2nd home affect tax credits and benefits?

fed_up_and_stressed

FBaby wrote: »

It really is incredible that one family up north could afford a second property for £60K and getting an income out of it whilst this would be what is required to put a deposit down on a main home in some areas of London, yet both families would be entitled to the same amount of benefit....somehow doesn't sound right at all.

But housing benefit would not generally be at the same level for both areas

FBaby

But housing benefit would not generally be at the same level for both areas

I would certainly hope that HB doesn't apply when buying a second property!

fed_up_and_stressed

FBaby wrote: »

I would certainly hope that HB doesn't apply when buying a second property!

the discussion was regards to HB are subject to different payment levels in all areas, due to regional variations in LHA not that a comment that housing benefit was applicable to the OP !

Teahfc wrote: »

Wow, why does the government and local councils put families on full benefits in these areas ? Why london when HB is so stupidly high when Halifax and many other similar towns with nice houses like that could not be utilised is beyond me ?

diymonkey

First of all let me thank those who have helped me with the original questions that I posted at the start of this thread...THANK YOU.

Now I appreciate that some people are not happy with the way the current benefits/tax system works, but as it stands at the moment, everyone has a right to this until such time that it is changed.

I would be most grateful if you could kindly post your concerns in a different forum as this forum is just to give tax/benefits advice to members and not to rant about how unfair the system is. I feel that my thread has now been hijacked and is going into a pointless political debate.

somethingcorporate

Many B2L lenders also require that you own your own home (I assume you do) and your meet a minimum income requirement (often £25k).

I suggest you seek the help of a good mortgage advisor.

Personally, I think you would be running a huge risk, B2L is time consuming and risky and if the money in the house ever does impinge on your benefits and you are forced to sell you could hit bankrupcy before you find a buyer.

There are easier ways to make money in this world.

sidefx

diymonkey wrote: »

First of all let me thank those who have helped me with the original questions that I posted at the start of this thread...THANK YOU.

Now I appreciate that some people are not happy with the way the current benefits/tax system works, but as it stands at the moment, everyone has a right to this until such time that it is changed.

I would be most grateful if you could kindly post your concerns in a different forum as this forum is just to give tax/benefits advice to members and not to rant about how unfair the system is. I feel that my thread has now been hijacked and is going into a pointless political debate.

Oh good grief!

You are looking for a way to take the !!!! out of the system.
Fill your boots, but people like you make me sick.
Sleep well you leech

diymonkey

@ somethingcorporate - thanks for the advice. You mentioned that there are more easier ways to make money, but what are they?

@ sidefx - people like me? I work just like everyone else and pay my taxes. Getting tax credits is just like any other tax allowances people can get, such as car, clothing and expenses, so the likes of you who have a sad life spreading hatred and abuse can go sc##w themselves.

nannytone_2

tax credits are nothing like the benefits in kind that you are comparing them to.
they are not like a uniform washing allowance, or a mileage allowance.

tax allowances are a reduction is tax due to certain expenses ... laundering uniform / work milage etc.
what expense due to your employment is being paid by tax credits?
they are a social security benefit that happens to be administered by HMRC.
once universal credit comes in ( and all parties have said they are keeping it) the 2nd property will become a capital asset and will be assessed along with any income you make from it

sidefx

diymonkey wrote: »

@ somethingcorporate - thanks for the advice. You mentioned that there are more easier ways to make money, but what are they?

@ sidefx - people like me? I work just like everyone else and pay my taxes. Getting tax credits is just like any other tax allowances people can get, such as car, clothing and expenses, so the likes of you who have a sad life spreading hatred and abuse can go sc##w themselves.

If you say so

diymonkey

nannytone wrote: »

tax credits are nothing like the benefits in kind that you are comparing them to.
they are not like a uniform washing allowance, or a mileage allowance.

tax allowances are a reduction is tax due to certain expenses ... laundering uniform / work milage etc.
what expense due to your employment is being paid by tax credits?
they are a social security benefit that happens to be administered by HMRC.
once universal credit comes in ( and all parties have said they are keeping it) the 2nd property will become a capital asset and will be assessed along with any income you make from it

Okay that's fair enough and I respect that, but I simply posted a question and was totally polite about it, but what gives people like sidefx the right to be abusive and damn right rude? I haven't milked a system, but was just interested in doing something for my family.

If he's not happy don't post on my thread.. Go elsewhere!