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Capital gains and tax credits

Ewa MitaEwa Mita Just JoinedRegistered Posts: 2
I wonder if someone knows the answer to this. I am just about to do my tax credits annual review. Last year I sold a property (which was rented and not private residence). I made some profit on the sale - capital gain. Should the gain be claimed as other income on working/ child tax credits forms or not? I have asked tax credits people twice and I received opposite answers: one was not to show the gain but interest only earned on savings held in the bank while the second answer was that all property income should be shown. I then spoke to an accountant who did not know answer to this and another accountant who was almost certain capital gains should not be shown on tax credits forms as it is not earnings income but income from investment (different type of income) - not for tax credits purposes. At the end of the day I am so confused that I do not know what to do - claim capital gain in tax credits or not? Does anyone know the right answer.

Comments

  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    You should check with the tax credit helpline, but I am 99.9% sure that capital gains does not come into tax credits, only income from employment/self-employment etc.
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