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Universal Credit & Capital

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Have been in a panic the last few days after reading that under the new Universal Credit any capital will be taken into account unlike the Tax Credits we currently claim where it isn't.

Last year my husbands nana passed away and left to him part ownership of the land she had inherited a few years earlier, she was tenants in common 50% of with another unrelated person. So 25% to was to go in his name and 25% to his sister. Looking at the land registry documents we were sent the value stated in 2005 when his nana inherited that land was listed at under £100,000. As far as we have been made aware the land is virtually worthless as due to historic mining on the area the council have stated that no building is allowed on the land. There was mention at one point of a local farmer being interested in renting the land but only for a nominal amount as being local he knows the land is worthless. I think £50 a month was mentioned which when split isn't going to be any help.

Now i'm starting to think that being named on this land is going to be a huge millstone round our necks when UC comes in as they will take is as capital and we will end up not being entitled to anything and at the moment we rely very heavily on what we get in tax credits. I'm assuming due to deprevation of assets rules its too late to get the land transferred into trust for our little girl so i'm trying to work out what our options are as I can't see anyone wanting to buy a 25% share of a worthless piece of land. We currently receive £297 a month TC/WTC.

As much as it pains me our best option is probably going to be selling our house and downsizing as due to getting on the property ladder early in life I made quite a profit on my 1st property so our current home has a bit of equity in and our current mortgage is just a bit more than our TC income so that would be problem solved right there. But i haven't really looked if there is anything available for that price that is family friendly.

Just wondering before we start investigating the selling route if anyone knows where HMRC would get their valuation figure from for the land to work out our capital? And if it will be looked at any differently because my OH being a tenant in common we can't just sell up and get the money out of it to support ourselves. Obviously if he was the sole owner that's what we'd be doing straight away.

My mum suggested just not telling them about the land as she can't see how they would find out about it anyway but I really don't want to commit benefit fraud just for the sake of £3.5k a year.

It's just so frustrating as the land was due to go into my MIL's name but she decided just to split it between OH and his sister as it would eventually come to them anyway - wish i'd known about this UC ruling then!!

Any advice would be welcome. TIA

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