Still a student/disabled unemployed and have a hefty SLC request due to one-off investment income

Wirebird

Just checking, but if you are still a student and/or disabled and unemployable, does a one-off investment income of say £100,000 mean you have to pay SLC on this. I know that you have to pay slc on this if you are unemployed in general as it is classed as capital income, but just checking as my son is still registered as a student (having issues completing because of disability) and is also pretty disabled and is not working. The money was going to be used by him to rebuild his life.

silvercar

Student loans become repayable the April after the end of the course, as a general rule.

Whether investment income counts may hinge on whether he is required to complete a tax return.

I’ll move this to the student board.

silvercar

https://www.gov.uk/repaying-your-student-loan/when-you-start-repaying#:~:text=You'll%20only%20repay%20your,you're%20on%20Plan%205

Seems to suggest

“The earliest you’ll start repaying is:

• the April after you leave your course

• the April 4 years after the course started if you’re studying part-time and your course is longer than 4 years

April 2026 if you’re on Plan 5“

Jemma01

can I clarify, what do you mean by "an investment income"? Are we talking about one off payment to his account, or are we talking about putting 100K in some investment account and generating money out of it? What is this 100K and where is it coming from? Is it inherited? Is it a gift?

Wirebird

one off income - from a trust and taxable hence it is capital

thanks for the answers so far

2Protons

https://forums.moneysavingexpert.com/discussion/comment/81972501#Comment_81972501

I would get some financial/legal advice as its coming from a trust so it probably isn't consider his own capital if he doesn't control it (and I wonder what type of trust as you mention your son is disabled so it could be a Disabled Person’s Trust too (or is it worth getting some advise on if this trust could be turned into one) which is also called a Trusts for vulnerable people - https://www.gov.uk/trusts-taxes/trusts-for-vulnerable-people which has some tax advantages over regular trusts)

Also why does the money have to be taken out of the trust? Could the trust not pay directly if its for a specific purpose e.g. the money was for a house deposit and it was being bought for your son's benefit?