I just have a few queries regarding my IVA which I hope someone can answer. I am looking to move abroad to Dubai and work for a few years and wondered what impact it would have on my IVA. The main issue is putting my house up for rent. As long as I don't make a profit from the rental, is there an issue?
There is no problem in moving abroad, but I suspect that by working in Dubai your income will increase and therefore so will your contributions.
Was the property included in the IVA - ie do you have to raise equity at the end of the arrangement? There ought to be no problem in renting the property out, so long as you try and maximise the rental income to ocver the mortgage. If profits are made on this, then you will need to include this in any additional disposable income calculation that is forwarded to your IP for review.
It isn't necessarily the case that it will increase as my wife will not be working out there so unless accomodation is provided, we will be paying rent out there so there could not be a major difference. However, if there is then yes I understand that contributions will need to increase and thats not an issue.
The property was included but I don't see myself making any profit on the rental so again, hopefully not an issue.
Thanks Mel for clearing that up.....
There is another issue to consider. If you rent the property out long term it would become liable to capital gains tax [CGT] when you eventually sell it. If you remortgaged it in year 5 to pay creditors make sure that you are not taking out money that you will have to pay to HMRC at some stage in the future. You could find yourself with a CGT liability on the property but no equity left to satisfy that liability.
