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Hi All,
I was wondering if anyone can tell me whether if I sell my rental property the capital gains from this would count towards "income" under the child maintenance service rules?
I pay maintenance currently for the rental income side, but am considering a sale of the property to fund my legal costs and reduce the burden on my finances that the CMS place on me. Just dont want to declare anything yet to the CMS just in case.
Cheers
Sean
Hello Sean
The Child Maintenance Service works out child maintenance as a percentage of the paying parent's regular gross income, this is to ensure that payments are affordable.
You can find more detailed information about how the Child Maintenance Service work out payments here, https://www.gov.uk/
The Department for Work and Pensions (DWP) have a web application, ‘Sorting out separation’. It aims to make it much easier for separating and separated parents (and childless couples) to find the support they need, when and where they need it, and encourages them to collaborate on a range of issues. The link is http://www.dad.info/divorce-and-separation/sorting-out-separation
Regards
William
Hi Sean
It might be worth speaking to both CMS and HMRC - you will be charged capital gains tax so you'd need to clarify if that counts towards your taxable income or whether it's separate.
It might be worth looking at the option of increasing the mortgage against the rental property - this will reduce your income from the property and might also allow you to offset the increased interest against income, so also reduce your tax burden from the rental income - you'd certainly be advised to get some professional financial advice before doing anything.
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