Tax Creds and Inherited house

moonpenny

After being unemployed for the last 6 months, I have just found a new job.
I am going to claim working tax creds and also the over 50 element that I can get for 1 year.
I have inherited a house that is going through probate at the moment but was valued at £70000. The house is a mess and at the moment is unliveable.
I have a couple of people interested in buying - builders, but am unsure what to do at the moment. I really don't want to take less than the £70000 if I can help it.
How is this going to effect my tax credits? At the moment, the house is "assets" - how does this effect me? but if I were to sell, what then?
I have struggled all my life on minimum wages and as I only have 3 years to go till I retire, this would have been my pension. Is there any way around this?
All comments appreciated.

mrs_pepperpot_3

was in similar situation so i asked inland revenue

when you sell your savings will be seen as assets and therefore your ta credits may stop.
however if you stuck it on the market, you could be waiting a year or more, so try to be patient, im eaving mine for 5 years until maret recovers, fortunetly mine is in great onditio so my brother is living there, but also remember capital gains tax when you come to work things out.

becky004

Could you not hang on to the house until you retire? Do it up yourself gradually over the next few years, it would then be worth more and give you a bigger pension pot.

cheepskate_2

mrs_pepperpot wrote: »

was in similar situation so i asked inland revenue

when you sell your savings will be seen as assets and therefore your ta credits may stop.
/quote]

This is quite incorrect.
When you sell it is not the amount of money you make but the interest on this amount that is taken into account .

moonpenny

Thanks to everyone who replied to my post.

I am frightened of hanging on to the house in the present climate because of falling values, and it being a low valuation already. However, it is food for thought.

Didn't know it was only the interest taken into account for tax credits.

Thanks again!