Means test Carer Allowance confusion

Marie1976

Does anyone know how the means test is assessed on a second property that is rented currently? Information on line is confusing.

Do they assess the rent or the property value or both?

TooTired123

https://www.boards.ie/discussion/2058292413/means-test-carer-allowance-confusion

It’s the property value. First €50000 is disregarded.

Marie1976

Any other opinions on this? There is conflicting information online.

TooTired123

I have copied and pasted the below from the Gov.ie website. I’ve also provided a link to the page.

It’s from the Operational Guidelines re Means Testing of SW payments and is the definitive guide to the rules surrounding entitlements.

Assessment of second properties

Property covered by the capital investment rule includes second houses and/or any other buildings or land owned but not personally used or enjoyed as the principal residence or farming business.

The house in which a customer resides – their principal residence or home - 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 customer owns a second house. If the house is let, the owner is assessed with the capital value of the property, and not with the income from the letting i.e. the rental income. 

Similarly, the market value of leases and ground rents is assessed as capital; the rental income is not assessed.

Any outstanding mortgage registered against the property is deducted from the market value.

https://www.gov.ie/en/publication/11f23e-means-assessment-guidelines/#property

Marie1976

https://www.boards.ie/discussion/comment/120481901#Comment_120481901

Thanks. From this I understand that the rent is not assessed as means and in this particular situation as the mortgage is slightly higher than the value this means that the capital value is nil or negative?

TooTired123

https://www.boards.ie/discussion/comment/120482597#Comment_120482597

The rent is not assessed as means in this situation and the value of the house is the valuation less the mortgage owing.

Marie1976

https://www.boards.ie/discussion/comment/120482654#Comment_120482654

Thanks it's below zero so