Rental income

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    I have a case where we have rental income which need to be taken into accont under REG 17 (t) of the SPC 2003 Regs, However, I can’t find anything to allow us to deduct outgoings such as the mortgage and insurances from this income. Can anyone shed any light on this or do we have to use the gross income for pensioners.


    Is the customer IRO pension credits? If so you wouldn’t need to worry about it as long as PS are aware of the income. If not it depends whether or not the property in respect of which the customer receives ‘rent’ is the one they occupy as their home.

    If it is then the income is treated as such by HB(SPC) 2006 Reg 29(v) (sorry, I haven’t got the old regs to hand). The disregards from this ‘boarder, lodger, sub-tenant’ income are found in Sch 5 paras 9 or 10 depending on the circs.

    If not then, as I see it, you have two choices. If the customer is a self-employed property tycoon ignore the capital value of the properties and assess their self-employed profits, allowing their expenses for mortgage payments etc. If this is just a second property and you do not consider the customer to be gainfully sef-employed, it will be the capital value of the property that you take into account rather than income from it. At this stage you are only interested in the equity that the customer has in the property so would deduct outstanding mortgage from the value.

    Hope this helps

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