Reply To: Diminishing Notional Capital rule


[quote=”mwigg1Given that the capital has been returned to the claimant, you could revise your decision to the effect that it was never notional capital but actual capital.

Alternatively, you mightt have a case where the capital is counted twice – once as notional capital and again as actual capital when it is gifted back to the claimant.

I think you need to establish exactly what has happened with this money. Why was it returned to the claimant? Did she genuinely give it away in the first place or was she just trying to conceal it from yourselves?[/quote]

Though I can’t think of a situation in which you would treat the same capital as notional and actual, I agree with mwigg.

Question 1 : I would tell the claimant that as long as claim is made within 26 weeks and reg 49 (1) still applies then actual capital held is of no consequence as I can only apply notional capital.

Question 2 : As mwigg said you would need to establish why capital was returned before deciding if HBR 49(1) still applies, if so then the 26 weeks still stand. (Until there is a change in circs that disapplies the reg HBR 49(1). Unless of course HBR 50 (5) has already been applied then it’s 26 weeks from then)

Hope that helps.