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capital/home ownership
Hi folks.
I have a client who owns his flat. 3rd floor no lift.
He has heart failure and is vitually housebound sue to stairs.
He has the chance of a fkat from Association but he obviously has an assett due to the home.
receives IS/IB and DLA.
any ideas?
He rents it out.
he sells it?
If the flat is worth less than £16k after deducting 10% and any mortgage etc then if he rents the flat out and it is not disregarded as capital under certain provisions (including the one about him taking steps to sell it) then the income he receives from that is actually treated as capital so that shouldn’t be a problem (see reg 46(4) HB Regs 2006):
1. The capital value of the flat will not end entitlement to IS (although may be some tariff income etc).
2. The income from rent is actually capital as well.
Martin
[ Edited: 27 Apr 2012 at 02:26 pm by Martin Williams ]