Hi Dads,
I own a property in England that I rent out.
My ex successfully applied for a 'variation report' on the rental income and it is now used in calculating my child maintenance.
My question is, when I sell this property will the CMS use the sales proceeds also to calculate the child maintenance payments? This would be significant!
Thanks!
Hi There,
The CMS will calculate the amount you pay based on your taxable income, as far as I am aware you wouldn't be taxed on the sale of the property unless you were buying and selling properties as a living
GTTS
Thanks for the swift reply GTTS.
I don't sell properties for a living, this is my only property and I will sell it to buy one I will live in.
I will have to pay Capital Gains Tax on the property sale.
Would that be included in the tax that CMS consider as income tax?
Thanks,
Colin.
Hi There,
I'm not 100% certain to be honest, I wouldn't have thought so as if you inherit money it doesn't get used within the calculation.
You would need to discuss with CMS to be certain
GTTS
Before you sell, I would recommend that you get professional financial advice - it might be that you could take a mortgage on the rental property to help you to buy the house you live in. There are tax implications though, which is why you need professional advice on this.
The variation has only been applied as you are obviously working with an income, if you didnt have a job and an income then your rental income cannot be used in the calculations, also any pension contributions you pay are taken off the amount you earn before its calculated.