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Original poster

UC is half parents house capital?

21 replies

octopusenergyfree50 · 28/02/2025 16:14

Many years ago my partners
parents transferred half of their house into his name. His mom still lives there, she is a pensioner.
Is this classed as capital for UC if we get no income from it?
Thanks

OP posts:
Diningtableornot · 28/02/2025 16:16

You should get proper advice, but I think it would be classed as capital. Your partner owns half a house. It belongs to him, it's not just 'in his name' for convenience. I suspect that people do this kind of thing without considering the consequences.

Goawayquickly · 28/02/2025 16:21

No, it's not counted as capital as his mum is retired and obviously a close relative, this gives an exemption. I just found it on found on the government website.

Totototo · 28/02/2025 16:39

Get confirmation on your specific case and in writing as far as I have read it will count however, only someone who is assessing your case and puts it in writing is enough to be sure.

Totototo · 28/02/2025 16:39

Goawayquickly · 28/02/2025 16:21

No, it's not counted as capital as his mum is retired and obviously a close relative, this gives an exemption. I just found it on found on the government website.

Show us a link that is not what I read.

Original poster
octopusenergyfree50 · 28/02/2025 16:41

Goawayquickly · 28/02/2025 16:21

No, it's not counted as capital as his mum is retired and obviously a close relative, this gives an exemption. I just found it on found on the government website.

Do you have a link please or photo of this? Thanks

OP posts:
Miley1967 · 28/02/2025 16:44

Very odd that people could potentially tie up capital in a parents house and still be eligible for UC ! I'm sure it is correct but surprised by some of these rules !

haufbiskiy · 28/02/2025 16:45

It is disregarded as per link above

Goawayquickly · 28/02/2025 16:46

From the government website after googling capital for UC purposes, there is a link to exemptions in the part about property

UC is half parents house capital?
Bromptotoo · 28/02/2025 17:02

UC Regs 2013 Schedule 10 Para 2.

https://www.legislation.gov.uk/uksi/2013/376/schedule/10

Original poster
octopusenergyfree50 · 28/02/2025 17:14

haufbiskiy · 28/02/2025 16:44

Thanks that's perfect

OP posts:
Original poster
octopusenergyfree50 · 28/02/2025 17:15

Thanks everyone

OP posts:
Soontobe60 · 28/02/2025 17:38

Its pretty disgusting that in a case where one person adds their adult child’s name to the ownership of their property - which is more than likely done to avoid paying care home fees in the future, and that the adult child can also claim UC despite owning half a house. Double whammy of entitlement that will end up costing everyone else more in taxes.

babasaclover · 28/02/2025 17:50

Soontobe60 · 28/02/2025 17:38

Its pretty disgusting that in a case where one person adds their adult child’s name to the ownership of their property - which is more than likely done to avoid paying care home fees in the future, and that the adult child can also claim UC despite owning half a house. Double whammy of entitlement that will end up costing everyone else more in taxes.

I have to agree. This is why we're all fucked

Bromptotoo · 28/02/2025 17:58

Soontobe60 · 28/02/2025 17:38

Its pretty disgusting that in a case where one person adds their adult child’s name to the ownership of their property - which is more than likely done to avoid paying care home fees in the future, and that the adult child can also claim UC despite owning half a house. Double whammy of entitlement that will end up costing everyone else more in taxes.

There are many and any number of reasons why somebody ends up as owner, or more likely part owner, of a home a pension age parent lives in. They could have bought Mum a home and fallen on hard times. Right to buy will have created it's share of cases too.

It's not actually all that common and trying to untangle arrangements separating the deserving and undeserving will throw up any number of hard cases. If Mum also has an interest in the place and rights to occupy then the value of the UC claimant's share may be quite small.

Government has rightly decided it's a situation there's no value in fighting.

If, OTOH, such an arrangement were entered into specifically so as to acquire title to benefit it might be seen as deprivation.

ClassicalQueen · 28/02/2025 22:23

Soontobe60 · 28/02/2025 17:38

Its pretty disgusting that in a case where one person adds their adult child’s name to the ownership of their property - which is more than likely done to avoid paying care home fees in the future, and that the adult child can also claim UC despite owning half a house. Double whammy of entitlement that will end up costing everyone else more in taxes.

No wonder everyone else is screwed! They should never be allowed to claim UC if they own half of a home.

Bromptotoo · 01/03/2025 08:17

ClassicalQueen · 28/02/2025 22:23

No wonder everyone else is screwed! They should never be allowed to claim UC if they own half of a home.

Show quote history

In all circumstances except where the home is occupied by dependent kids or close relatives who are either ill or pensioners the claimant has to show they're attempting to sell.

Do you expect people to make their aged parents homeless?

Lifestooshort71 · 01/03/2025 09:26

Soontobe60 · 28/02/2025 17:38

Its pretty disgusting that in a case where one person adds their adult child’s name to the ownership of their property - which is more than likely done to avoid paying care home fees in the future, and that the adult child can also claim UC despite owning half a house. Double whammy of entitlement that will end up costing everyone else more in taxes.

....and to avoid future IHT? Be interesting to hear from the OP what the intention was?

repellingmnvipers · 01/03/2025 09:33

@ClassicalQueen how does owning half a home that is inhabited going to help them pay the bills? He cannot liquidise the asset with the Co owner in situ. The only way it would net him income would be if him mother was paying rent on him half which I don't imagine to be the case.

WellsAndThistles · 01/03/2025 10:28

People have been doing this since 1980's - all those pensioners who managed to buy their Council Houses with their adult children paying the tiny mortgage.

Definitely something that the current government should be looking into, I don't think tax payers should be funding someone's rent payments via UC if they own another property.

Bromptotoo · 01/03/2025 14:33

WellsAndThistles · 01/03/2025 10:28

People have been doing this since 1980's - all those pensioners who managed to buy their Council Houses with their adult children paying the tiny mortgage.

Definitely something that the current government should be looking into, I don't think tax payers should be funding someone's rent payments via UC if they own another property.

The short answer is, that for the vast majority of claimants, you cannot own a property you do not live in and just get Universal Credit awarded ad infinitum.

There are three main exceptions. Where the home is occupied by close relatives over pension age or in receipt of health related benefits and if it's the home of a former partner who is a single parent of minor children.

There are other, short term, disregards for example 6 months where people have recently separated.

Outside of that you're going to be showing it's on the market or you're taking steps to that end.

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