Inheritance and benefits

Duncde

How will inheritance affect my benefits, currently on working tax credit and housing benefit for a housing association flat i live in. have just had a deposit of a large sum. about to get same again next month intend to use my right to acquire to buy my flat which wont leave much change. I'm not trying to avoid anything here just trying to be sensible.

pmlindyloo

Duncde wrote: »

How will inheritance affect my benefits, currently on working tax credit and housing benefit for a housing association flat i live in. have just had a deposit of a large sum. about to get same again next month intend to use my right to acquire to buy my flat which wont leave much change. I'm not trying to avoid anything here just trying to be sensible.

The inheritance would be counted as capital and if over £16000 you would no longer be eligible for housing benefit.

Capital is disregarded for working tax purposes unless interest on the capital is £300 or more a year.

You need to notify the council and HMRC as soon as the money is in your bank account.

50Twuncle

pmlindyloo wrote: »

Capital is disregarded for working tax purposes unless interest on the capital is £300 or more a year..

I fell foul of this 7 or 8 years ago - HMRC assume that interest is paid at some totally fictional rate - I think that they were working on about 10%.....

xylophone

You need to notify the council and HMRC as soon as the money is in your bank account.

have just had a deposit of a large sum. about to get same again next month

Needs to get on with it then!:)

Alice_Holt

50Twuncle wrote: »

I fell foul of this 7 or 8 years ago - HMRC assume that interest is paid at some totally fictional rate - I think that they were working on about 10%.....

Incorrect.

Actual income is used for tax credits. See https://www.entitledto.co.uk/help/tax-credits-other-income

https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/what-is-income/investment-income/

Note that excluded income includes:
"Income from Individual Savings Account or a Personal Equity Plan (including interest, dividends or other gains on such plans)"

Tariff income from savings is applied against income based benefits such as ESA / JSA / HB.

HollySocks_2

You should be able to use the inheritance to purchase a property, without it being classed as deprivation of capital. I'm in a similar situation, benefits were stopped a few weeks ago.


I would write to the DWP beforehand though, just to get confirmation that you're ok to use the inheritance and purchase the place under right to acquire. Cuts down on any potential problems.