Uc/capital

hatton12

How does Uc look at capital  for a property being rented out is it rental income or the market value?

Alice_Holt

hatton12 said:

How does Uc look at capital  for a property being rented out is it rental income or the market value?

  Market value less mortgage, less a 10% allowance for selling costs.

Note that rental is classed as capital (rather than income), so would be added to this figure.

See:

https://assets.publishing.service.gov.uk/media/65d336b3e1bdec2be1322238/admh1.pdf

H1602 on

https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/#:~:text=claimant's personal capital.-,Letting property,See our section on companies.

hatton12

Alice_Holt said:

hatton12 said:

How does Uc look at capital  for a property being rented out is it rental income or the market value?

  Market value less mortgage, less a 10% allowance for selling costs.

Note that rental is classed as capital (rather than income), so would be added to this figure.

See:

https://assets.publishing.service.gov.uk/media/65d336b3e1bdec2be1322238/admh1.pdf

H1602 on

https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/#:~:text=claimant's personal capital.-,Letting property,See our section on companies.

Market value £180000 mortgage remaining £65000. So uc would look at £115000 as capital. So no entitlment to Uc if I'm correct?

peteuk

hatton12 said:

Alice_Holt said:

hatton12 said:

How does Uc look at capital  for a property being rented out is it rental income or the market value?

  Market value less mortgage, less a 10% allowance for selling costs.

Note that rental is classed as capital (rather than income), so would be added to this figure.

See:

https://assets.publishing.service.gov.uk/media/65d336b3e1bdec2be1322238/admh1.pdf

H1602 on

https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/#:~:text=claimant's personal capital.-,Letting property,See our section on companies.

Market value £180000 mortgage remaining £65000. So uc would look at £115000 as capital. So no entitlment to Uc if I'm correct?

Unless your are moved over to UC via migration from another benefit, to which you will have a year in which capital is disregarded but you will still have a £4.35 deduction for every £250 or part of between £6K and £16K.

Newcad

peteuk said:

hatton12 said:

Market value £180000 mortgage remaining £65000. So uc would look at £115000 as capital. So no entitlment to Uc if I'm correct?

Unless your are moved over to UC via migration from another benefit, to which you will have a year in which capital is disregarded but you will still have a £4.35 deduction for every £250 or part of between £6K and £16K.

Just to note that the 12-month capital disregard only applies if 'migration from another benefit' means a Managed Migration from Tax Credits (WTC or CTC) to UC.
(Of course though, with over £16k capital you wouldn't/shouldn't be getting any of the other migrating benefits than Tax Credits anyway).