Selling Property - CSA

Diablo_Nero

Hi,

I've had twenty years of the CSA. Dutifully paying whatever I've been required to do. Contact with my children broke down some time ago, and I have unfortunately lost that bond with them. The youngest child is 18 this month, and if he goes to University, like his siblings, I will finally be free of the CSA in September. (Later if he is guided to one of those qualifying educational courses that would continue his Child Benefit eligibility)
The reason I am posting though, is I have the opportunity of selling a house with a considerable amount of equity in it. I know that once the CSA is finished with me, it will be mine to do with as I will.
But if I sold it beforehand, could it be considered earnings, or attract some other form of financial penalty? I did Google this question in a few different forms, but couldn't find an answer.
I do wish to protect my financial situation, without being devious about it.

Guest101

It depends if it's a taxable income (ie an investment) or your personal home.

Diablo_Nero

Hi,

thanks for replying. Like most things in life, it's complicated. It was my long term family home for 15 years. Then 5 years ago I rented it out, and moved address, informing the CSA.
When the Tenants moved out 6 Months ago, I moved back in, but was happy to move out again for future new tenants. That didn't happen, so I'm at a crossroads. Whether to drop the rental price, or to sell.
If there is a liability, I just sit tight until it is out of the reach of the CSA, it will be my main residence (Council Tax, Electoral Role, etc), and sell up then.
So if you know, what are the various scenarios of liability, or non-liability, please?

jacquelinenicholas

regardless, just hang on and wait

Diablo_Nero

That may well be the result.
Firstly because there may be a financial penalty......and Secondly, because no Sod seems to know! :-)

I just fancied an informed choice, but you don't always get what you want in life. (Isn't that how we got the CSA thrust upon us).

HoneyNutLoop

The PWC could apply for a variation on the basis of assets, if all your assets total £65,000 or more. The home in which you live is excluded, but if you sell and you have that level of cash in hand, or at the bank or otherwise invested, she could ask for a variation.

The starting point to calculate income on the asset total is to apply the MOJ judgement rate of interest, which remains at 8%. So if you had assets totalling £100,000 the variation could determine you have £8000 additional income per year.

This is an exampl Upper Tribunal decision on assets. http://www.osscsc.gov.uk/judgmentfiles/j4616/CCS%205433%202014-01.doc

However, a variation is application based. If the PWC doesn't apply for one, your assets won't be taken into account in the standard calculation.

Diablo_Nero

Hi,

thanks 'Honeynut'. That's much more like the informative reply I was hoping for. Which in effect takes us back to the 'sit tight' option.
Sometimes, nowadays, a person can have just one asset in their life (Home), but it is worth a few hundred thousand pounds. If you release that into cash, it appears the CSA can come calling? (For it's 8% per annum of everything over £65k)
I'm happy with all of that, now I know how it works, and will crack on, a little wiser, but isn't it unfair that you could have two parents, both exactly the same, but one holds their assets in their house, the other in the bank, and they are both treated completely differently?
It's like the one I was told some years ago when I was struggling financially, and my ex-partner was earning great wage, and had met someone new who was earning more than the rest of us put together.
I asked if that could be taken into account, as my children were fine, and being looked after financially as good as could be hoped for. I was told, by a young, uncaring voice of the CSA, 'We don't really care if your ex-partner marries a multi-millionaire, we are assessing 'your ability' to pay', and then carried on taking £800 month, which crippled me for few years.
I will now apply the same cold logic to my circumstances.
Just a passing thought, and thanks for your help.