Reply To: Diminishing Notional Capital rule

#78521
Anonymous
Guest

Regarding the double-counting of notional and actual income.

If she genuinely gave away the £14,000, depriving herself of capital for the purpose of obtaining benefit, it would count as notional capital and assessed in accordance with the regs. If it had genuinely been given away she would not have any recourse to retrieve it. So if the family member she gave the money to decided to return it voluntarily, this would be actual capital. The money belonged to the claimant, then it belonged to the family member, then it belonged to the claimant again. I don’t see how the second transaction can affect the notional capital which arose through the initial “gifting”.