can I use my inheritance to buy the house I live in?

jocrow

I m on tax credits and housing benefit. Can I use inherited money to buy the house I live in?

worried_jim

If it's for sale go for it!

jocrow

but it won't leave me much to live on, I have a low paid job and 3 kids. Will I still get some tax credits?

Caz3121

tax credits is not affected by capital. (only any interest over £300 per annum)

duchy

The answer is a qualified yes.

There are certain rules but if you don't own a house and are buying a suitable property (eg not a mansion with a helicoptor pad) then it shouldn't affect your tax credits.

Tax credits are based on income and using an inheritance to buy your only property wouldn't usually be a problem.

Call tax credits to discuss your specific circumstances but on what you've said - you should be fine.

Voyager2002

None of this should affect tax credits, which depend on income. (However, if you were to inherit a lot of money and put it into a savings account then the interest you receive would count as income and so might affect tax credits.)

Your Housing Benefit certainly would be affected by an inheritance, since the inherited money counts as capital, and HB is reduced when your capital is over about six thousand pounds. And this effect continues if you give the money away or spend it on something just to qualify for benefit again: in that situation you are treated as still having the money. If you buy your home then you are no longer a tenant and so do not qualify for HB.

jocrow

Thank you all so much that's great help.

superhooper1972

Why would the OP need HB if they have bought the house. It will be theirs no rent or Mortgage. I say go for it sound investment for your kids futures is worth more than any tax credits.

benniebert

superhooper1972 wrote: »

Why would the OP need HB if they have bought the house. It will be theirs no rent or Mortgage. I say go for it sound investment for your kids futures is worth more than any tax credits.

Absolutely correct. The only niggle they may have is if they/he/she were to ever claim a means tested benefit in the future. Questions could well be asked as to why the money was used in that way. Deprivation of Capital regulations might rear their ugly head.

superhooper1972

benniebert wrote: »

Absolutely correct. The only niggle they may have is if they/he/she were to ever claim a means tested benefit in the future. Questions could well be asked as to why the money was used in that way. Deprivation of Capital regulations might rear their ugly head.

And what a ugly head.:) I still say go for the house purchase. Who knows what the future holds. not buying will be a major regret in later life, knowing you had that chance and didn't take it.

Way i look at it is. millions would love to buy their own house but will never be able to, you have the chance don't let it slide away.

benniebert

superhooper1972 wrote: »

And what a ugly head.:) I still say go for the house purchase. Who knows what the future holds. not buying will be a major regret in later life, knowing you had that chance and didn't take it.

Way i look at it is. millions would love to buy their own house but will never be able to, you have the chance don't let it slide away.

You could look at it that way. But to ignore what may/could happen sometime in the future is a little bit of head in the sand? Surely knowing all of the pros and cons, the poster can make a well thought out judgement call. You should look at all possibilities and not jump in feet first without a considerable amount of thought.


Up to the OP at the end of the day, they will have to live with the decision they make.