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Carers allowance and rental income
Can anyone tell me whether getting rental income from a second property ( with no mortgage ) would be seen as self employment income for carers allowance, even though they aren’t registered with HMRC. It is over the £123 pw threshold if taken into account.
Their other income is occupational pension which is disregarded.
Thanks
Pippa
I would assume it could be classed us unearned income!
So worth putting a claim in then.
Many thanks
Looked at another way, the owner of a single tenanted property is unlikely to have that property disregarded for means-tested benefits if they tried to class is as a business asset, eg see the reasoning in these cases:
https://www.rightsnet.org.uk/pdfs/rfc/2_92.pdf
https://assets.publishing.service.gov.uk/media/58e50091ed915d06b00000dd/_2017__AACR_5ws.pdf
Hi Pippa
If they are renting out a single property this is likely to be treated as investment income rather than earnings and consequently ignored for carer’s allowance.
This is made clear at para 15743 of Volume 3, Chapter 15 of the Decision Maker’s Guide. It states that
”A person who
1. has a single property that is not the home
and
2. lets the property to tenants
and
3. collects rents and does any repairs
is not conducting a business. The property is primarily an investment. “
The guidance goes on to contrast this with the situation where someone rents out several properties and is treated as engaged in self-employment.