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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Does capital gains from the sale of a flat need to be put on

Resolved Question:

Does capital gains from the sale of a flat need to be put on a tax credits declaration?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise -
Are you asking this in relation to child tax credits?

many thanks
Customer: replied 2 years ago.

the form doesnt say child on it but we have two kids, school age so I guess so.

we bought a flat (my stepfather helped us) when our marriage was in trouble, 1 bed on our street. it took 6 months to get by which time we had sorted out our differences so we painted it and sold it, making a profit of 30k

does that help?? Lisa

Expert:  taxadvisor.uk replied 2 years ago.

Lisa, thank you for your prompt reply.


Income for tax credit purposes -

This is any money earned from paid work (overtime only counts if you work the hours regularly), self-employed profits or some benefits (such as contribution-based JSA or employment and support allowance, incapacity benefit (in some cases) or carers' allowance but not child, housing, council tax or disability benefits).

It also includes any extra income above £300 you (or a partner) receive from a pension, savings, renting out a property, or things such as a trust or interest in the estate of a person who has died.

You don’t need to include money paid for child maintenance or your children’s income and some maternity benefits are partly excluded.

For the self-employed, income is any profit made in the last tax year, as submitted on your tax return. If you haven't finished your tax return yet, make a best guess based on your profit so far. If your business is new and you've had no income from it in the last year, you can leave the income section empty.

http://www.moneysavingexpert.com/family/tax-credit-child-working-overpayment#income

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

thank you for getting back to me swiftly.

Still unsure if capital gains is income on this form as its not a pension, savings, renting out a property, or things such as a trust or interest in the estate of a person etc

Expert:  taxadvisor.uk replied 2 years ago.
Lisa, thank you for your reply.

Capital gain is not income as it is capital gain and not income.

Although you would bring capital gains in your tax return to ascertain what is payable to HMRC as Income Tax and/or Capital Gains Tax but you ignore it for the purpoises of tax credits.

I hope this is helpful
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

perfect, thanks for your help.

Lisa

Expert:  taxadvisor.uk replied 2 years ago.

I thank you for accepting my answer.

best wishes.

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