Question:
I receive tax credits and am selling a second property. Would the sale of this property affect my tax credits as it would be taxed under capital gains and not income tax?
Arthur Weller replies:
If you look at www.gov.uk/hmrc-internal-manuals/taxcredits-manual/tcm0116000, 0118000 and 0120000 you will find no mention of capital gains as income determining eligibility to tax credits, so your capital gain should not affect your tax credits.
