Capital Gains on OPFP Means Test

D

Daretocare

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I hope someone out there can help me.

I bought my house 8 years ago with a County Council. My contract contains a Claw Back clause, in short if I sell I basically have to pay them a percentage (about 21%) of the profit.

I have been made redundant and applied for OPFP, I have failed the means test due to the value in my house. This test did not take into account that I will not fully solely own my house until 2022 because of the Claw back clause.

I would be very grateful if anyone could give me any imformation relating specifically to this.

Also can anyone explain what "less disregard Rent/Mortgage/Home-loan" means?

Thanks....
 
This is from the means assessment Operational Guideance issued by the Department of Social Protection http://www.welfare.ie/EN/OperationalGuidelines/Pages/meansassess.aspx


Assessment of house property

Property covered by this rule includes houses (other than a person's own home), buildings or land owned but not personally used or enjoyed.
The house in which a person resides, together with furniture and personal effects is not assessed.
Property must be capable of being sold, let or put to profitable use before a capital value assessment is applied.
The most common example is where a person owns a second house. If the house is let, the owner is assessed with the capital value of the property, not with the income from the letting. Similarly, the market value of leases and ground rents is assessed as capital; the income is not assessed.

Any outstanding mortgage registered against the property is deducted from the market value.
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Essentially the way that the clawback works is that it acts like a charge against the property, so again the value of any clawback that would be applied at this stage should be taken into account, there's at least a strong argument for it, as you don't have access to the full value of the property.
 
Ildánach said:
Essentially the way that the clawback works is that it acts like a charge against the property, so again the value of any clawback that would be applied at this stage should be taken into account, there's at least a strong argument for it, as you don't have access to the full value of the property.
Click to expand...

Thank you very much for your help...

Would anyone know where I might get a definative answer on this, as I have an appeal in a week and I would like to be prepared...

Thanks...
 
I doubt there's a definitive answer out there on it, but the Irish National Organisation of the Unemployed might be able to help 01 856 0088
 
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