Lump sum. Is this fraud?

[ItsAllAboutTheLighting]

Applying for student loan and they want my husbands earnings from 2019/20

That year we sold a house DH inherited and bought the house we're in.

One of the questions is "did you receive any other taxable income or lump sum"?

I didn't think we need to declare it because it was a house sale and purchase. We never actually received the money it went from solicitor to solicitor and house was bought outright.

But DH thinks we do (which I must admit, does sound correct in theory).

It's just the answer yes, and we received a lump sum makes it sound like I don't need a student loan when I most definitely do...

The property will have been liable for inheritance tax if the estate was above the threshold.

Unless you made significant improvements that increased the value, I'm of the opinion that the money from the sale doesn't count for capital gains tax, so doesn't need to be reported.

Caveat: I'm not an accountant, but I work in welfare rights and this has come up in the course of that.

I would just give HMRC a ring and ask them, it's the quickest and surest thing to do. It might come down to whether he inherited it in that period (rather than when it was sold) because it's about receiving a lump sum (although I don't know if the inheritance of a house constitutes a lump sum anyway). If he 'received' the house before that time it might be that he was just cashing in an asset that he already owned so wasn't 'receiving' anything.

Its not income, its a capital gain.

End of thread.

@MrsBison

Its not income, its a capital gain.

End of thread.

I'm gonna start ending my posts like that 💪🏻

In case that is correct, I'm putting a covering letter in with all the info explaining what that money is, and that it was capital gains tax.