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Posted Mon, 02 May 2022 13:42:01 GMT by Patricia Malicka
I have sold my rental property. On my self-assessment, I declare the profits as capital gains. Do I include them in Other income on my Tax Credits renewal form? I also had capital gains from selling stocks and shares (held in a general account, not ISA). Do I include these gains in Other income on my Tax Credits renewal form?
Posted Wed, 04 May 2022 14:40:06 GMT by HMRC Admin 2

Yes, these are treated as other income.

You can find information in the notes that accompanied the  Renewal Notice. There is a help sheet to help work out the ‘Other’ income. An excerpt is shown below. 

"Working Sheet 3: Other income

Income from savings and investments, including dividends. Enter the gross amount, but do not include tax exempt savings like ISAs. Include the full amount of any ‘chargeable event gain’ from a life insurance policy.

Property income. Include all taxable property income. When calculating your allowable expenses for tax credits, you should deduct 100% of your finance costs. Do not include income from the Rent a Room scheme if it is under £7,500 or £3,750 if you are a joint owner. If your rental property made a loss, there’s a working sheet available online to work out your trading losses. Go to GOV.UK and search for TC825."

Thank you.

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