Can I claim Housing Benefit once my house is sold?

terryw

rdpro wrote: »

it can be 'gifted' to the offspring..

.

Nope this is deprivation of capital.


https://www.workandpensions.gov.uk/housingbenefit/manuals/hbgm/parts/ptbp_01c.asp#bp_1700

rdpro

think on the difference between evasion (illegal) and avoidance (legal, with moral issues) - if you can save the 16k legally, and in the long term pass the benefit on to your children (uni fees, etc), what would your moral stand be?

I did the above for my mum when she was on a tiny pension to avoid CT, 'Gift With Reservation' is an accepted Inland Revenue term. Worth investigating..

rdpro

terryw wrote: »

Nope this is deprivation of capital.


www.workandpensions.gov.uk/housingbenefit/manuals/hbgm/parts/ptbp_01c.asp#bp_1700

Depends when it was gifted I guess - or ask the solicitor dealing with the conveyance to pass any profit direct to the chosen child.

terryw

rdpro wrote: »

Depends when it was gifted I guess - or ask the solicitor dealing with the conveyance to pass any profit direct to the chosen child.

OP has already said "no profit". It is capital which counts and if you give it away or gift it this is deprivation of capital. When you claim HB, the forms ask about properties sold and details will be required.

terryw

dmg24

terryw's information is correct, 'gifting' capital to children would be seen as intentional deprivation of capital. My use of the term profit (including the deposit) would in effect be equal to capital (from what the OP has said I am assuming they have no savings, as this would also count towards capital also).

Your entitlement to LHA (which has replaced HB) would depend on how much you are entitled to (this may be lower than the rent of your chosen property), your income, and your capital. If you go to the website of your local council, there will be a calculator on there that will give you an estimate.

rdpro

further down the page that Terry posted a link to:

The burden of proving that a claimant no longer has a resource rests with the claimant, because it is for them to establish title to benefit. Evidence of the disposal of capital would include

• a trust deed
• a deed of gift

So it counts as legitimate disposal, no?

dmg24

rdpro wrote: »

further down the page that Terry posted a link to:

The burden of proving that a claimant no longer has a resource rests with the claimant, because it is for them to establish title to benefit. Evidence of the disposal of capital would include

• a trust deed
• a deed of gift

So it counts as legitimate disposal, no?

No, you have taken it out of context. If you read the whole of the link, and more importantly, if you had experience of this in practice, you would know that it is not as simple as the five lines you have selectively quoted above!

wurzel1972

Ok, thanks you have all been a real help. I think at the end of it all it does seem to be a much more viable option to rent, even with savings, rather than hang on to this crap mortgage that I have. I will be much better off according to the HB calculator.

real1314

rdpro wrote: »

further down the page that Terry posted a link to:

The burden of proving that a claimant no longer has a resource rests with the claimant, because it is for them to establish title to benefit. Evidence of the disposal of capital would include

• a trust deed
• a deed of gift

So it counts as legitimate disposal, no?

rdpro, you really should not give out advice on something that you have no real experience of. It could have serious consequences for the recipient.
In any sale of property that leads to a HB claim, the Local Authority will check Land Reg records and establish the surplus capital, which they will themn expect to see declared by the HB applicant. Any discrepancy would have to be fully explained and could result in the applicant being treated as if they still have the full amount. There are very few ways to hide/move/dispose of capital that would be accepted.

However, OP if you have any significant debts apart from the mortgage (credit cards etc?), you may find that you can pay those off without penalty.

lil_me

wurzel1972 wrote: »

Ok, thanks you have all been a real help. I think at the end of it all it does seem to be a much more viable option to rent, even with savings, rather than hang on to this crap mortgage that I have. I will be much better off according to the HB calculator.

Calculators are not always correct, it's also LHA now not HB, there is a maximum they will pay towards accomodation depending on family size. You might be best contacting the council office for the area you are looking at renting in and asking them to tell you what you would be entitled to.