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Tax credits and house sale

(16 Posts)
OhhBetty Thu 29-Jun-17 10:04:28

Sorry another tax credits one but I can't get an answer out of them. Does anyone know if the money from my house sale will be counted as income?
Thanks

Cocklodger Thu 29-Jun-17 10:12:24

Depends how much it is.
I don't know if it would count as income FWIW but from what I know of the benefits system it's a set amount you're allowed to have,
Either 6 or 16k depending on the benefit, they won't allow you to claim if you have more than this (in equity or in the bank)
So you'd have to live off house sale money until it got below the level they set, then you'd be allowed to claim. There's also a set amount of time they think the money you have will last so you can't just spend spend spend to get below the limit.
Sorry if this isn't what you want to hear but it's my (admittedly limited) experience with benefits and tax credits. flowers

MrsSkeffington Thu 29-Jun-17 10:13:33

Not if you're buying another straight away

reallybadidea Thu 29-Jun-17 10:15:16

No it won't. Interest above £300 from savings is counted as income, but otherwise not.

OhhBetty Thu 29-Jun-17 10:15:34

I can't afford to buy another one straight away. It'll probably be around 10k which I wanted to use to buy a house once I get my promotion in a year or two. I just can't afford the nursery fees to work more than I already do now as a single parent. Thanks for replies.

Brittbugs80 Thu 29-Jun-17 10:15:42

It might affect a claim if it's staying in your bank, though it would be considered savings rather than income.

Lovegaultier Thu 29-Jun-17 10:16:41

Only the interest counts as income

MrsSkeffington Thu 29-Jun-17 10:20:15

But a change of address might push you on to universal credits and that's a whole other ball game - savings are counted. I'd try and keep things going

OhhBetty Thu 29-Jun-17 10:34:22

Thanks. I was going to put it in a low interest account. It will be my only chance of having decent savings and my only safety net so I'm terrified. The area I'm moving to will still be tax credits as currently you can't claim universal credit if you have a child which I do. I can't keel this house as I can't afford it.

superfluffyanimal Thu 29-Jun-17 11:11:53

if you are just putting this into savings then I understand that it would count in any benefit claim?

MrsSkeffington Sun 02-Jul-17 11:33:19

Also look into deprivation of assets - if you wisely invest it could the interest contribute in place of tc?

Elendon Sun 02-Jul-17 11:39:08

It will affect your tax credits but only if you have to pay tax. I think you will have to declare this as income if you sell a house. HMRC will contact you. If you are on income support, savings below £6999 will be allowed.

Elendon Sun 02-Jul-17 11:41:10

Please be wary about the universal tax credits. They don't notify you until they are on universal tax credits. Your payment is stopped and then you get the letter.

BrieOnAnOatcake Sun 02-Jul-17 11:43:49

it will count as savings won't it?

LemonSqueezy0 Sun 02-Jul-17 18:01:36

Universal credits is coming in very fast, so please bear that in mind if you intend to sit on the money for a couple of years. UC is supposed to be fully live within 12-18months at most. Hope it works out for you.

MrsSkeffington Sun 02-Jul-17 21:33:36

Only for a change in circumstances not for existing claimants - migration over is still a while away. However everyone I know is being changed over for a change in circumstances

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