A client receives Tax credits. Proceeds of partial sale of land from home are £75,000. Are Tax Credits lost and if so at what amount?
Gus Donnelly
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Income only
As far as I'm aware, only income is taken into account in determining tax credit awards, and no account taken of capital or capital gains.
On the face of it, there shouldn't be any withdrawal of tax credits here.
The only caveat might be if the transaction were treated as an income receipt, eg under s776 ICTA 1988, rather than capital, but then it would have to be shown as income on the ITR anyway.