I had a claim recently where what you describe happened. The customer moved from her own property into rented accomodation. The Pension Service amended the address but did not end the AIP. She has now sold her property and has more than £25,000 capital. Her AIP ends in 2007. The Pension Service are aware of the capital but, as an AIP was set, she continues to receive guarantee credit and therefore full HB & CTB until the AIP ends. I don’t know if she got lucky or if this will happen in every case. We’ll wait and see.
