Reply To: Deprivation of Capital.
MarkJust to complete this one…the notional capital provision has indeed found its way into the main regs. Reg 21 of The State Pension Credit Regulations 2002 -SI2002/1792. (note that this is different from the Act) says that:
” 21. – (1) A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to state pension credit or increasing the amount of that benefit except –
(a) where that capital is derived from a payment made in consequence of any personal injury and is placed on trust for the benefit of the claimant; or
(b) to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 22 (diminishing notional capital rule); or
(c) to the extent that the capital comprises assets administered on behalf of a person- –
(i) by the High Court under the provisions of Order 80 of the Rules of the Supreme Court, by the County Court under Order 10 of the County Court Rules 1981 or by the Court of Protection; or
(ii) in accordance with an order under Rule 43.15 of the Act of Sederunt (Rules of the Court of Session 1994)1994 or under Rule 131 of the Act of Sederunt (Rules of the Court, consolidation and amendment)1965 or under Rule 36.14 of the Ordinary Cause Rules 1993 or under Rule 128 of the Ordinary Cause Rules,
where the assets derive from an award of damages for a personal injury to that person”
My reading of this therefore is that you are right to believe that the notional capital used in any HB calculation is irrelevant information for the Pensions Service at this time.