owning a EU property and esa

COSTAS12345

I am in receipt of ESA and DLA. In May 2016 a few months ago, my parents transfered an apartment to my brother sister and myself, each one has 33% share. I am not renting out the holiday home, though can I hold it and still claim ESA.

Seperately can my parents gift me money to buy a property and still claim benefits.

Alice_Walker

A property that is not your main residence will count as capital if you are claiming means tested benefits. You don't say what type your ESA is?

With regard to buying a property, it would be best for your parents to give the money directly to the solicitor acting for you. This would be fine assuming it will be your main residence.

COSTAS12345

am on income related ESA. The thing is that I am not getting any rental income.

Alice_Walker

COSTAS12345 wrote: »

am on income related ESA. The thing is that I am not getting any rental income.

It doesn't matter, that is your choice. The value of your interest in the property will count as capital. Given the time that has already lapsed you need to declare this immediately to avoid a compliance investigation.

COSTAS12345

what will happen after I inform them, my esa will cease and will I have to pay the benefit back since the end of May?

Alice_Walker

COSTAS12345 wrote: »

what will happen after I inform them, my esa will cease and will I have to pay the benefit back since the end of May?

If the capital is over £16,000, yes. There may also be a penalty for failing to declare a change in circumstances, but it will be far less than if they find out otherwise (and you'd be surprised what they can find out).

Give them a call Monday morning, explain and apologise for the oversight. It should be easily remedied.

COSTAS12345

will do thanks, also does land count as capital as well

tomtom256

COSTAS12345 wrote: »

will do thanks, also does land count as capital as well

Yes the value of any land you own will also count as capital.

TELLIT01

I gift of cash would be treated as capital. As Alice Walker has already said, it would be better for your parents to pay any money direct to a solicitor for house purchase.

COSTAS12345

Hi just another thought, would it be wise for my parents to transfer back the ownership, by taking my name off the deeds and what would happen then?

[Deleted User]

COSTAS12345 wrote: »

Hi just another thought, would it be wise for my parents to transfer back the ownership, by taking my name off the deeds and what would happen then?

Considering you still need to tell the DWP as you already own it, it may be seen as deprevation of capital. Hiding assets doesn't get rid of the problem. You are meant to live off your wealth not take from the state while you sit on it.