We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Selling own residential house
maggieaggie1
Posts: 4 Newbie
Hello
I am planning to sell my own flat which I am living and this is my only property.
Probably I would sell it for more than I paid for it.
After selling I will be renting for sometime until I will not find suitable property to buy to live in.
I claim tax credits ( working and child).
My question is , if I sell my property and I would get the money in my bank account so it would affect my tax credits? Do I have to declare it?
Thank you .
I am planning to sell my own flat which I am living and this is my only property.
Probably I would sell it for more than I paid for it.
After selling I will be renting for sometime until I will not find suitable property to buy to live in.
I claim tax credits ( working and child).
My question is , if I sell my property and I would get the money in my bank account so it would affect my tax credits? Do I have to declare it?
Thank you .
0
Comments
-
Yes you have to declare it.
However that may be disregarded for up to 12 months (in some cases longer for exceptional circumstances) in order for you to buy a new property to live in. Any money left over from that will be taken into account. To my knowledge it is not savings that are taken into account but earnings from said savings another more versed in Working Tax Credits rules will be able to confirm.
It is best to declare any and all changes at the point they change. Any changes to money especially. From a money saving point of view, if your savings have reduced you should be much more proactive in informing as this may mean that less money is taken into account increasing the amount of money you can get. Won't save you mega bucks, but every little helps.
litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/what-counts-income-tax-credits
(Not allowed to post links, so preface with the usual).0 -
Yes you have to declare it.
However that may be disregarded for up to 12 months (in some cases longer for exceptional circumstances) in order for you to buy a new property to live in. Any money left over from that will be taken into account. To my knowledge it is not savings that are taken into account but earnings from said savings another more versed in Working Tax Credits rules will be able to confirm.
It is best to declare any and all changes at the point they change. Any changes to money especially. From a money saving point of view, if your savings have reduced you should be much more proactive in informing as this may mean that less money is taken into account increasing the amount of money you can get. Won't save you mega bucks, but every little helps.
litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/what-counts-income-tax-credits
(Not allowed to post links, so preface with the usual).
The poster is only claiming tax credits so most of what you have said does not apply.
For tax credits it is only the income (interest) that you receive from your savings that is taken into account. If it is less than £300 a year then it is disregarded.
More information here:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/696649/WTC2_A_guide_to_Child_Tax_Credit_and_Working_Tax_Credit.pdf
pages 22/230 -
Yes you have to declare it.
However that may be disregarded for up to 12 months (in some cases longer for exceptional circumstances) in order for you to buy a new property to live in. Any money left over from that will be taken into account. To my knowledge it is not savings that are taken into account but earnings from said savings another more versed in Working Tax Credits rules will be able to confirm.
It is best to declare any and all changes at the point they change. Any changes to money especially. From a money saving point of view, if your savings have reduced you should be much more proactive in informing as this may mean that less money is taken into account increasing the amount of money you can get. Won't save you mega bucks, but every little helps.
litrg.org.uk/tax-guides/tax-credits-and-benefits/tax-credits/what-counts-income-tax-credits
(Not allowed to post links, so preface with the usual).
The disregard (for means tested benefits) you mention when having savings from a house that you intend to use to buy another residential property is 26 weeks but may be extended in certain circumstances.
And just to reiterate, this does not apply to tax credits.0 -
Is the money form selling own residential property is countable as capital in tax credits?
If I sell for more than I paid for, is is a profit- income for tax credits purpose?
Do I have to declare it in renewal pack for the next year in tax credits?0 -
Tax credits are about income. If you have a £100k on deposit at 1% they want to know about the £1000 of income.maggieaggie1 wrote: »Is the money form selling own residential property is countable as capital in tax credits?
If I sell for more than I paid for, is is a profit- income for tax credits purpose?
Do I have to declare it in renewal pack for the next year in tax credits?0 -
The 'profit' is not income. Ii is not taxable nor do you have to declare for tax credits.
If there is any bank interest on the account that the money is in( or any other bank account) needs to be shown in the 'other income' box. You deduct £300 from the total other income and put the balance figure in the box.
If there is no other income and no bank interest then there is nothing to declare.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601.1K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards