Owning property and UC

luke123456

Hi

Currently under the tax credit system, if you own a property and have a mortgage you can still get Tax credits if your income is low.

With UC, will you still be able to get UC if you have a mortgage on a house?

thanks

nannytone_2

if it's the house you live in, yes.
not if it's a second property

luke123456

is that the situation with TC also

NYM

luke123456 wrote: »

is that the situation with TC also

I'm confused, isn't that the question you asked and nannytone answered?

With UC, will you still be able to get UC if you have a mortgage on a house?

nannytone answered

if it's the house you live in, yes.
not if it's a second property

nannytone_2

under TC, it isn't the asset amount, but the innterest/income that counts.

so a second home would be ignored, but the rent ( with a few deductions) will be counted

luke123456

Thanks nineteen that helps

Can you also tell me whats the difference between that which you explained about TC and UC....?

Will UC take into account the asset amount? (whether its your first or second property)

konark

If it's your only property it will be ignored under both systems, but a second property will count as capital ( and income) under UC and almost certainly leave you unable to claim.

Under the existing Tax Credits system only the net income from the 2nd house is taken into account.

nannytone_2

just occurred to me.

tax credits are being replaced by universal credit anyway, so no one will claim both at the same time, and also wont have a choice in which they claim.

densol_2

luke123456 wrote: »

Will UC take into account the asset amount? (whether its your first or second property)

Your question has been answered

luke123456

That reply didn't really help densol

luke123456

The main differenceI thought is that mortgage interest support won't be available under UC if you do any work, unlike now where you can get it if you work under 16 hours.

Can someone please explain this to me thanks