Hello,

Can someone/everyone just advise on the following please?!

For PC purposes if a client has a second property AND they are renting it out, does the rental income count or the capital value (minus 10% for sales).

CPAG page 937 implies that only certain types of property are disregarded. However a college recalls reading (somewhere that they can’t find now) that rental income may count instead depending on the agreement between the owner and tenant.

Any answers please?

Thanks

Actual income from capital is disregarded, except in certain circumstances: para 18, sched 2, 2002 Regs. These circumstances are given in sched 5.

However, unlike the various benfits regulations, the main sections of the regs are silent on treatment of income from cpaital

Hi,

Depends who is in the other property, the value of the other property may be disregarded if a close relative, grandparent, grandchild, uncle, aunt, nephew or niece of claimant or partner is living in it who is aged 60+ or ‘incapacitated’.

If not then would prima facie count for the purpose of deemed income, though the actual rental income would not.

Regards