Capital Gains Tax when on an ESA

BestWishesEveryone
BestWishesEveryone Online Community Member Posts: 2 Listener
edited December 2024 in Employment and Support Allowance (ESA)

Hello everyone,

Hope everyone is doing well and able to deal with life challenges :-).

Please if someone can guide me on a particular query:

I am on new style ESA that's taxable. In addition, I have a £700 per month job (£8400 per year) that's well within the £183/week wages to maintain eligibility for new style ESA. Even after combining these two taxable incomes, I am a basic rate tax payer.

My Husband gifted me shares that I am looking to sell, so my question is: Can Capital Gains of say £30k count towards ESA eligibility that puts a limit of c £9500 as net income to be eligible for the new style ESA

Thank you so much in advance.

Comments

  • BestWishesEveryone
    BestWishesEveryone Online Community Member Posts: 2 Listener

    So just to update: I spoke to the Govt ESA helpline. And it is all good. Capital Gains don't affect the ESA eligibility the officer confirmed.

    I also got this info from a charity, which validated the same:

    When it comes to new style ESA there are only a couple of things that will affect it – if you have a certain type of pension over £85 a week and haven’t paid at least 50% of the premiums or if you are a local councillor and have an allowance above £183.50 (same as the permitted work levels) Quite aside from any tax implications which I am not qualified to advise on, gifts or assets, savings, second properties etc are all ignored.

  • Jimm_Alumni
    Jimm_Alumni Scope alumni Posts: 5,717 Championing

    That's an interesting bit of knowledge thank you @BestWishesEveryone Certainly wasn't something I knew previously so I really appreciate you coming back and letting us know!

  • Netnerd
    Netnerd Online Community Member Posts: 9 Listener

    Slightly similar question to that above, I am on income related ESA, quite a while ago I put a little money into crypto currency and that is now worth enough to buy me a new car (I am disabled and on pip too). My question is that if I cash that in and buy a car will that affect ESA as in would they say I now have capital even though it goes straight on a car I need. A little back story, I have always had mobility cars until they cut people off with their new criteria.

Categories