I am 59 years old, divorced, in full time employment and on…

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Answer 1

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1/9/2012

UK Tax Professional: Sam, Accountant replied 11 years ago

Sam, Accountant

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Hi

Thanks for your question

I am sorry to advise that whatever you do with the proceeds of the sale, this will inhibit any entitlement to housing benefit, as you will either have more than £16,000 in capital if you retain the sale proceeds, or be treated as having incurred a deprivation of capital, by passing the flat or the proceeds of the sale to your son.

Your state benefits (which I assume you mean state pension) are not affected by income, or capital, or assets you hold, as state pension is awarded on the basis of contributions made throughout your working life.

Sorry the news is not better

Thanks

Sam

Answer 2

UK Tax Professional: Sam, Accountant replied 11 years ago

Hi Allan

Thanks for the follow up questions and they are on topic so I can cover these within the same thread.

I am afraid the answer is the same, there is nothing you can do to avoid capital gains on the sale of this flat.

And whatever you do with this property, sell it now and give proceeds to son, or pass property to son, this will render you being treated as depriving yourself of capital, which will affect housing benefit, as I am sure you can appreciate there are many individuals out there, that do not have the benefit of savings or assets, that are in need of the help that housing benefit provides. You have sufficient funds when this property is sold, to cover your own living expenses, and thats how i will be viewed.

Your only options are

1) Sell the flat, and pay the capital gain due, and

2) Use the money to support yourself, until such time that your capital is less than £16,000 when a claim for housing benefit might be due OR

3) Move back into the flat in Perth,( and this maybe once the mortgage has been paid off if this presents a financial problem) , and then you have the flat intact to pass onto your son when you pass away.

Thanks

Sam

Answer 3

UK Tax Professional: Sam, Accountant replied 11 years ago

Hi Allan

You are very welcome and I am sorry the news is not more favourable.

Please do press accept so that your payment is passed onto me, and a bonus and any feedback is always welcome

Thanks

Sam

I am 59 years old, divorced, in full time employment and on…

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