Buying a property to rent out

Tonawanda17

Hi, i asked this a few years ago but just to check. Would income from a rental property effect my esa (Contributions based) and also would it effect my permitted work earnings. Would the add the renal income and my PW earnings together (would it go over the limit)

Thanks

poppy123456

If it’s the only property you’re renting out then it will be ignored for CBESA. It would not affect your PW earnings either.

If you’re claiming help with any rent through housing benefit and/or council tax reduction then owning a property you don’t live in will mean both of those benefits will stop. If you’re claiming single person discount for CT then this will continue.

Don’t forget that your ESA is taxable income so may need to pay tax if the income from the property, working and ESA exceeds your tax allowance.

Tonawanda17

Thanks poppy. I did find something saying that if i was managing (looking after) the property it count as earnings. Maybe i am wrong. Thanks again

poppy123456

No problem. No, not if it’s your only property.

Tonawanda17

It would be, thanks again