Reply To: Undeclared Capital

#8626
Anonymous
Guest

Just one point – I’d suggest that you check the wording of Reg 103 as my understanding is that you can only deduct the amount of Housing Benefit overpaid in each 13 week period to reduce the HB overpayment and the corresponding Ctax provisions suggest that you can only deduct the amount CTB overpaid in each 13 week period for the purpose of calculating the diminuation of capital rule.

This is pretty impossible to input on most systems so you may need to consider manual adjustments, although with capital of £40,000 you may find that the capital stays in excess of the £16,000 limit for the overpayment period – depending on the size of the overpayment.

I don’t believe that the regs do permit you to deduct other overpaid benefits such as PC/JSA or IS nor to aggregate overpaid HB and CTB.