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Forum Home  →  Discussion  →  Income support, JSA and tax credits  →  Thread

Property occupied by family member

Phil R
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Nestor Financial Group Ltd

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My client owns a property, the net value of which is more than £16K.  She is looking at renting a property to look after her severely disabled daughter (adopted), as her current home is not suitable. Her aunt and uncle would like to move into the property as they are looking for somewhere new. Both are of pension age. The cl is in receipt of IS. My question is, would the value of the property be disregarded under Para 4, Schedule 10, of IS Regs if the family members were living there rent free? What if they were paying rent?

P496 of CPAG seems to say it is disregarded.

[ Edited: 23 Feb 2021 at 02:31 pm by Phil R ]
Elliot Kent
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Shelter

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Property occupied by a relative over SPC age is disregarded as capital for IS purposes. Relative is inclusive of an aunt or uncle. Whether rent is paid doesn’t matter (at least for the purposes of the question).

The property would not be disregarded for UC purposes because the UC regs only disregard in these circumstances where the property is occupied by a “close” relative which does not include an aunt or uncle.

 

Phil R
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Nestor Financial Group Ltd

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Thanks Elliot. It looks like the rental income will be treated as income less the mortgage, council tax and water charges (P 443 CPAG).

Paul_Treloar_AgeUK
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Information and advice resources - Age UK

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Just to add to Elliot’s point, if DWP argue, then the definition of “relative” is in reg.2:

“relative” means close relative, grand-parent, grand-child, uncle, aunt, nephew or neice;

Phil R
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Nestor Financial Group Ltd

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Thanks Paul, much appreciated.