Kind Advice Required regarding sale of a personal digital asset

Calculator1000

Yamor said:

I basically agree with @sheramber.

This would normally be taxed as income from IP (s.579 ITTOIA), or possibly as income from the disposal of "know-how" (s.583 ITTOIA). It could only be taxed as a capital gain if it was sold as part of the sale of a trade.

As such, it is "unearned income" for UC, and would reduce your UC £-for-£ in the AP in which you receive the money, but would not affect your award on an ongoing basis.

For Carer's Allowance, it counts as income, and would mean you lose entitlement for up to 19 weeks (£3000/151.01). However, you should be back on UC for most of that time, in which case the loss of the Carer's Allowance wouldn't actually affect you that much.

If this was the case, I am not sure it affects carers allowance as it states on their pages that ` savings and unearned income do not affect carers allowance, but earnings from work do. Employment and earned income means having a job. `  I have queried Hmrc over 2 weeks ago now but no one has come back to me yet.  I suspect they are as unsure as I am.

Yamor

Calculator1000 said:

Yamor said:

I basically agree with @sheramber.

This would normally be taxed as income from IP (s.579 ITTOIA), or possibly as income from the disposal of "know-how" (s.583 ITTOIA). It could only be taxed as a capital gain if it was sold as part of the sale of a trade.

As such, it is "unearned income" for UC, and would reduce your UC £-for-£ in the AP in which you receive the money, but would not affect your award on an ongoing basis.

For Carer's Allowance, it counts as income, and would mean you lose entitlement for up to 19 weeks (£3000/151.01). However, you should be back on UC for most of that time, in which case the loss of the Carer's Allowance wouldn't actually affect you that much.

If this was the case, I am not sure it affects carers allowance as it states on their pages that ` savings and unearned income do not affect carers allowance, but earnings from work do. Employment and earned income means having a job. `  I have queried Hmrc over 2 weeks ago now but no one has come back to me yet.  I suspect they are as unsure as I am.

When I say "unearned income", that is just for UC purposes. It does not mean it is unearned income for Carer's Allowance.

The regulations for Carer's Allowance specifically include this type not income as "earnings" for Carer's allowance purposes.