Work and child tax credits.

[Vonnie35]

Hi. Can anyone help.?.my husband and I separated 5 years ago and he's just sold what was our house under duress. He's agreed to give me £18,000 and of that I will give my 2 boys £5,000 so that they can use it when they're of a certain age. I'm currently claiming the above as I work part time and I'm a single parent still. Will I have to tell HMRC about the money and will it affect anything even though I'll be left with £8,000?

Are you claiming housing benefit?

If you have greater than a certain amount (16?) then you have to declare it. You can't just give away 10k and not have it 'count'.

Tax Credits aren't means tested. As above, housing and Council Tax benefit is though.

It wont affect tax credits but would affect housing benefit if you claim that. As other have said you can't just give money away as it would be seen as deprivation of capital.

I only want to give my children something so they I can tell them that that's what I worked for with their dad. Not to be sneaky or untruthful.

It doesn't really matter the reasons why you want to give some of it away - if you have money and don't declare it for some benefits then it will back fire on you as they will find out. As I said it won't affect tax credits.