Disregarded Capital and rental income for UC

tiredconfused

Hi,

I have had a migration letter to move to UC from tax credits. Me and my partner own a second property which we rent out to my mother. She is over pension age and so assume that the capital will be disregarded according to the rules.

However I am confused about the income from the rent she pays us. Is this considered 'Other Income', 'Capital Income' or disregarded too?

Also when I declare the income from the property can I included the mortgage interest payments as expenses (you could on the old tax credits but not sure with UC and can't find any definitive answers anywhere).

I would be really grateful for some advice please.

Thanks

HillStreetBlues

tiredconfused said:

Hi,

I have had a migration letter to move to UC from tax credits. Me and my partner own a second property which we rent out to my mother. She is over pension age and so assume that the capital will be disregarded according to the rules.

However I am confused about the income from the rent she pays us. Is this considered 'Other Income', 'Capital Income' or disregarded too?

Also when I declare the income from the property can I included the mortgage interest payments as expenses (you could on the old tax credits but not sure with UC and can't find any definitive answers anywhere).

I would be really grateful for some advice please.

Thanks

Rental income under UC is treated as capital not income and that capital isn't disregarded.