Second property

calcotti

peteuk said:

Owning a second home and tax credits is not the question you should be asking, as your tax credit will soon stop and you’ll be on UC.  Only you wont because you have a second property, 

Under Managed Migration UC will be permitted for 12 months before the capital is taken into account.

Dachshund23

I’m not on any benefits now haven’t been for a couple of years this is about when I was on tax credits at the time of me buying the property 

peteuk

Dachshund23 said:

Can anyone advise what are the rules if a second product is let rent free tax credits 

Does not mention anything about historical claim, current or future claim.

The rules as advised are simple for tax credit the ownership of a second property makes no difference to the claim.  Tax credit works on your income only, if you received rent on the property then that would be classed as income (there is a clause to this but as you state it was rent free it does not reply.  
What would have happened in the year you claimed Ta credit would be you estimated the household income at the start of the tax year and then using your P60 advised HMRC of your actual income at the end of the tax year.  AT the start they would calculate how much to pay and then at the end they recheck and make the adjustment if required.  And then recovery to payment or over/under payment made.  (Recovery of overpayment usually from the next years claim)

 

Dachshund23

What’s brought it all about is there is capital gains on second property’s which I did not know about which has had me looking at one thing then another which is when I looked back on tax credits it says how you can be deemed as having income even though you haven’t received it to stop people manipulating the system to claim tax credits or more tax credits and I’m real scared I’ve been doing something wrong 🙈