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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I've sold my house. As I was in debt and had 48,000 left I've

Customer Question

I've sold my house. As I was in debt and had 48,000 left I've payed my debts of and put 16000 in a isa my husband works he gets 14750 a year I get working and child tax and child benifet. Will my tax credits carry on as normal or end I rung them to say I've moved and got money in bank but they they take savings into account unless it makes 300 a year in interest is this right ivam worried because the whole point of selling my house is so we could be debt free
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

To be clear you have in EXCESS of £16,000 capital - is that right?

JACUSTOMER-1usq01o6- :

Yes that's right but I did have 48000 to start with

Alex Watts :

You have more than £16,000 now?

JACUSTOMER-1usq01o6- :

Just 16000

Alex Watts :

So you had more than £16,000 at one point? They have stopped your benefit is that right?

JACUSTOMER-1usq01o6- :

I don't get benefits only tax credits and that's still going

Alex Watts :

Ok - but you had more than £16,000 at one point?

JACUSTOMER-1usq01o6- :

Yes 48000

Alex Watts :

Its bad news then. It looks like you disposed of the excess capital. I know you have paid off debts but you are seen to have otherwise disposed of it

Alex Watts :

What you can do is appeal the decision with Tax Credits

Alex Watts :

That means it would go to a Tribunal and then be decided by an independant body

Alex Watts :

But usually if you have had any capital over £16,000 and disposed of it, by debts or giving it away, they can stop the benefit

Alex Watts :

I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest

Alex Watts :

Can I clarify anything for you about this today please?

JACUSTOMER-1usq01o6- :

Do why was I told savings don't matter unless they make 300 a year in interest it feels like I've sold my house for nothing

Alex Watts :

Its capital generally of £16,000 a year or more. But given the low interest rates they may allow interest of £300 or under.

Alex Watts :

But as I said if they do stop the tax credit you can appeal and it will go before an independent Tribunal

JACUSTOMER-1usq01o6- :

So I am in trouble now

Alex Watts :

I agree it is unfair, but sadly those are the Regulations that cover tax credits. You should declare any change now to prevent them finding out, which looks worse

Alex Watts :

Can I clarify anything else for you?