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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4810
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I am on sick benifit and recieve council rent rebate, but if

Customer Question

I am on sick benifit and recieve council rent rebate, but if I went over £6,000 in my bank acount I would then have to pay partial rent, I had around £5,000 in my bank and I was due to recieved an inheritance of £6,000 I invested my own £5,000 I already had by buying a few guitars. I was told this was legal as long as I did it before I recieved the money I was inheriting. Is this correct? Thank you. I suppose it would be legal even if I waited and had £11,000 in my bank and the spent £5,000 on guitars as it is my money but I was just wondering if I did get the correct advise.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Here is the advice from Coffeehouse: 'Anything over £6000 will affect benefits, anything over £16k will stop them altogether. They include childrens savings (other than the CTF that cannot be accessed until 18) as otherwise people would just move their savings to the childs account to claim.' You would be well advised to buy those guitars before the inheritance money hits your bank account! Your surmise that your benefits will be affected if your bank balance exceeds 6K is correct. I do hope that my advice has been of use to you.
Customer: replied 1 year ago.
Hi. Yes that is what I did, purchased the guitars before I got any inheritance, I was told this was legal.
Expert:  bigduckontax replied 1 year ago.
I totally agree so your bank balance never goes above the magic 6K.