Reply To: Diminishing Notional Capital rule

#78518
Anonymous
Guest

[quote:716d1551a2]Alternatively within this 26 week period a large part of the £14k ‘gifted’ capital is returned by the family to the clmt who then uses it to repay some of the overpaid HB, CTB and I/S. [/quote:716d1551a2]
If HB was overpaid as a result of the capital you should be looking at diminution of capital in 13-week installements to calculate the overpayment, not 26 weeks.

Given 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?