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New btl tax rules and Child tax credit implications

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Comments

  • Alice_Walker
    Alice_Walker Posts: 574 Forumite
    slowpoke_rodriguez wrote: »
    That's what I thought, tax credits only depend on taxable income.

    So, OP, sell your BTLs and stick the profits, if any, in ISAs and premium bonds instead.

    While you are correct about tax credits, under Universal Credits ISAs and Premium Bonds will count as capital and affect her claim.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    MatthewAinsworth wrote: »
    I would think there would be long term capital gains in property just like most stocks, but why does it nor turn a profit?
    The usual reasons would include an inherently low yield, high maintenance costs and/or service charges, voids etc etc.
  • LisbonLaura
    LisbonLaura Posts: 1,121 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    funnymonkey wrote: »
    Good morning.
    Can anyone please help.
    I am a single mum and own 3 properties, one we live in and two I rent out.
    I make next to no profit at the rental only just covers the mortgage payments.

    I'll probably be labelled a pedant, but when I worked for a mortgage provider you did not own a property if it was mortgaged.
    ................
    Sometimes I think Phil & Kirsty were part of a deliberate socially destructive plan.
    Time will tell.
    I also thought this was a wind-up at first.
    Now I realise it's me that is well out of date on baseline entitlement assumptions.
  • booksurr
    booksurr Posts: 3,700 Forumite
    edited 28 August 2016 at 1:17PM
    LisbonLaura wrote: »
    I'll probably be labelled a pedant, but when I worked for a mortgage provider you did not own a property if it was mortgaged
    a first charge held by a lender has nothing to do with who owns the property, it merely puts constraints on what happens to the money when it is sold, so yes you are :D

    BTW hi, long time since I've seen you around :beer:
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    LisbonLaura wrote: »
    I'll probably be labelled a pedant, but when I worked for a mortgage provider you did not own a property if it was mortgaged.
    No, you'll be labelled "wrong", which you absolutely and completely are.
  • LisbonLaura
    LisbonLaura Posts: 1,121 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 28 August 2016 at 12:34PM
    booksurr wrote: »
    a first charge help by a lender has nothing to do with who owns the property, it merely puts constraints on what happens to the money when it is sold, so yes you are :D

    BTW hi, long time since I've seen you around :beer:

    Pedantic & wrong :j

    Hi booksurr, thank you. Indeed it has. Sold the 'yacht' & thought we would try 'reality' for a while. After five weeks in bonkers Blighty :( we think pre grim-reaper slow perpetual travelling is where the sanity remains.
    Looking for house by a lake or river, so I'll re-tune to the immortal 'Have a Look' thread:D :beer:
  • davholla
    davholla Posts: 523 Forumite
    I've been Money Tipped!
    peter_we wrote: »
    Any capital over £6000 has to be declared. This includes property that isn't your home.

    http://www.entitledto.co.uk/help/savings
    So how did she get tax credits?
  • sheramber
    sheramber Posts: 23,275 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    davholla wrote: »
    So how did she get tax credits?


    Only taxable income is included for tax credits. Capital is ignored.
This discussion has been closed.
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