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INCAPACITY BENEFIT AND INCOME FROM HOUSE RENTAL

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11 years 10 months ago #25225 by Nellybaby
Hi
I am long time recipient of incapacity benefit and my condition is unchanged.I must now rent out my parents home which has been left to me.Will receipt of this income be classed as work from the point of view of incapacity benefit.Would it be better for me to transfer property to my husband.
Would appreciate any help.Should I contact Incapacity Benefits office directly.
Thanks!

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11 years 10 months ago #25245 by Crazydiamond
Replied by Crazydiamond on topic Re:INCAPACITY BENEFIT AND INCOME FROM HOUSE RENTAL
Nellybaby wrote:

Hi
I am long time recipient of incapacity benefit and my condition is unchanged.I must now rent out my parents home which has been left to me.Will receipt of this income be classed as work from the point of view of incapacity benefit.Would it be better for me to transfer property to my husband.
Would appreciate any help.Should I contact Incapacity Benefits office directly.
Thanks!


Although it would seem unlikely that renting out your parent's home would constitute work, it would be advisable to contact the office that deals with your IB claim preferably in writing, to find out if the circumstances as described will have any effect on your entitlement?

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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11 years 10 months ago #25250 by jima1
Hi CD,

I agree with you entirely. When I first moved to the Lake District over 20 years ago, we owned a static caravan which I used to hire out.

At that time I was advised by the former DHSS, that my IB would not be affected by any income from hiring out the van, as long as I wasn't in receipt of any means-tested benefits, which I wasn't.

However, you will have to inform HM Revenue & Customs as any income from letting out a property may be subject to Income Tax.

As things have changed quite a bit now it's the DWP, I agree with CD that you should contact the office that pays your IB.

Kind regards.

Jim

PLEASE READ THE SPOTLIGHTS AREA OF THE FORUM REGULARLY, OTHERWISE YOU MAY MISS OUT ON IMPORTANT INFORMATION. Nothing on this board constitutes legal advice - always consult a professional about specific problems

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  • Barkthedog
11 years 10 months ago #25251 by Barkthedog
I feel certain you will find that the second home (one left to you by parents) is not exempt when calculating monies available to you.

This then may apply if you are renting it out or not, although renting it out would be yet more income one would suppose.

Greatly depends if it is your only main home; although you must live somewhere.

I'd call them to chat it over to err on the side of caution.

BTD

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  • Barkthedog
11 years 10 months ago #25257 by Barkthedog
Actually thinking about it (as you do), I suppose that IB is not reliant on what monies you have capital wise? Is this also a reason why they (HMG) wish to get everyone across to ESA from IB? I see that what you have as far as ESA is concerned does indeed count.

BTD

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  • originaldave
11 years 10 months ago #25264 by originaldave
Replied by originaldave on topic Re:INCAPACITY BENEFIT AND INCOME FROM HOUSE RENTAL
you will not be counted as working by renting a house out but it will be counted as income, but thats after expenses are allowed

depending on the inome made and thats not the same as the rent charged and when IB was awarded you might have to pay more tax

is your IB pre 1995 12 April 1995 is the magic day ?

if you tell the tax man in advance that you are going to be getting income and will be happy to do a tax return each year he can put this on your records now ...... so if you are paying tax on your IB that wont be affected nor will the DWP become involved and you can deal with the tax man and they wont start trying to take tax or more tax from the DWP

also if you sell the house in future and get other benefits it might affect your ability to claim them as the house is not your main house and even if you where selling it to buy another house or upgrade the money would not be treated the same as selling your house to buy a new house

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