nevip
welfare rights adviser, sefton metropolitan borough council, liverpool.
Member since 22nd Jan 2004
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RE: rental income from property
Fri 13-Feb-09 10:34 AM |
Generally, the usual position for second properties rented out is as follows. If the claimant does not intend to move into that property and thus cannot benefit from one of the disregards in paragraph 6, or none of the other disregards apply (apart from paragraph 7, which I will come back to), then any beneficial interest that the claimant has in the property counts as capital.
However, the interest of the tenant needs to be determined. If the tenant has some decent security of tenure, such as a tenancy for life (or arguably a fixed term or assured non-short hold tenancy) then the claimant will have a reversionary interest in the property and the capital value will be disregarded under paragraph 7.
Any rental income from property which is not disregarded or only disregarded under paragraph 7, will be taken into account as capital.
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