Parents rental income

Hi

I am hoping someone can help.

I get that the maintenance loan is assessed on parents gross taxable income but half their income is through rental income. I believe this is a new issue and maybe a rare once since HMRC have slowly disallowed Mortgage interest. Their taxable income at the beginning of their SA302 is a lot more than what their income actually.

Will the 'relief for finance costs credit' be reflected in their household income for the maintenance loan calculation? Its quite a large chunk at £25,00 and will make a difference as to whether I will be able to afford my rent let alone live.

Thank you

Hi, there is a box on the form that is for income from property lettings http://ow.ly/opMD30qijXx - they should put this in there. It will affect your funding as it is part of their household income.
Thanks, Isaac

Yes I agree that their property income is part of their income but how HMRC now calculate it is very different to a few years ago now that mortgage interest is taxed in a different way.

I don't think you understand my question.

3 years ago rental income would be calculated after all expenses including mortgage interest.

Now it isn't. Please see an attached example. In this example you can see the true profit is actually £2,000 but under the new rules is £9,000 but with a tax credit for the mortgage interest element underneath.

I am asking am I needing to give the £2,000 figure or the £9,000.

For our personal example this is a difference of just under £30,000 per year and a difference between me being able to accept my University place or not.