Claiming tax credits and selling houses

chr1s999

Hi all, thank you very much for your replies. I have spoken with Tax Credits again and explained that we are paying Capital Gains on the property sales (so as to make it clear that it wasn't our own houses we were selling). The telephone advisor went to read the notes and then spoke to the team leader. She returned to me and said that they would like to phone me back on Monday (this was Friday) as there isn't any guidance on capital gains (!?). Anyhow they phoned me back today to ask somemore questions - one being if my husband is a property developer (which he is not) and they have gone away again to pass this to another department (the guidance department or something like that) and I am to phone back in a week to see if they have come up with an answer. They have already confirmed that if I do have to declare it I can offset my husbands self employment losses against it, so I am not too worried, however at the end of the day I do need to know !!!

I'll let you know the outcome

chr1s999

was glancing through past threads and came across this (appreciate that it is a couple of years old) - any relevance to my question???

http://forums.moneysavingexpert.com/showthread.html?t=88647&highlight=capital+gain+tax+credits

hotblu

Hello Chris999,

I have a confession... I was at work yesterday and asked my team leader... he didn't have an answer for me, sat their for about 30 minutes going through the guidance I can actually now say... I am stumped!

chr1s999

Hi Hotblu

Thanks for your reply.......its bazaar isn't it, and no problem at all I appreciate your replies.

It is very frustrating, How am I and others meant to get our claim right when Tax Credits don't know themselves...Like I have mentioned previously I have got such a mixed response over this question and surely I am not the first person to query this - or maybe I am just the most persistant!!! :-)

hotblu

chr1s999 wrote: »

Hi Hotblu

Thanks for your reply.......its bazaar isn't it, and no problem at all I appreciate your replies.

It is very frustrating, How am I and others meant to get our claim right when Tax Credits don't know themselves...Like I have mentioned previously I have got such a mixed response over this question and surely I am not the first person to query this - or maybe I am just the most persistant!!! :-)

Totally understand your frustration, I am just as frustrated because me and my colleagues are the first point of contact and its not nice not being able to give a straight answer - so sorry about that. The one thing I can confirm, like you pointed out (and I double checked with manager) as long as your profit from self employment is not from property rental, then you will be able to offset it, thus shouldn't affect outcome of capital gains. Let me know how you get on with that callback as am really interested to findout the answer.

Hotblu

Ps, good luck

chr1s999

Hi Hotblu

I presume you mean as long as the 'loss' from self employment is not from property rental. . . . .well my husband, as part of the business which made the biggest loss, does rent property however the loss is from buying some commercial property which isn't let. I presume I can still off set this? or would you not know?

Thanks