UC and unearned income

DollyMixtures21

Hi, I've looked all over the net and can't find the answer. I'm hoping someone can help. We are wanting to possibly rent out static caravan out for a few weeks in the summer to put towards running costs. I know the caravan is classed as a personal possession and not capital so I'm not sure how the income would be treated.

Could anyone point in the right direction

Thanks

Newcad

Rental income is not classed as income at all for UC.

It certainly isn't 'Earned Income'.
Then for UC it isn't 'Unearned Income' either unless it is included in the list in the UC legislation (and rental income isn't on the list): https://www.legislation.gov.uk/uksi/2013/376/regulation/66

However there is then a trickier question of whether a static caravan that is being rented out can still be a 'Personal Posession' or if it becomes a 'Capital Asset'.

If you are making money from something then generally it is an asset. (In which case the rent received would then also form a part of the capital value of the asset).

I have no idea just how a Decision Maker would regard "a few weeks" of holiday renting though, the rules are aimed more towards residential letting. (And there are other rules for regular holiday lets as a business).

PS. It might/will help when searching for things about this to use 'flat' rather than 'caravan', it's basically the same principle of renting a property out, albeit that you are talking about short non-residential lets (there again so are AirBNBs in a flat), they are just properties built from different materials.

PPS. While UC doesn't class any money received from rentals as income the Taxman certainly does.