I’m dealing with a HB appeal. The clmt owns two properties which are rented out, and our original decision was that there was not enough activity and involvement for it to count as self-employment, so the net capital value of the properties counted, disqualifying her from HB. The clmt is 71 with health conditions that prevent much activity and the properties are a considerable distance away, managed by an agent and with insurance etc in place to deal with any issues. She visits the properties infrequently and both tenants have been in place for around 10 years.
She’s now provided evidence that she received a £50k personal injury payment in 2002, when aged 51. She used that as deposits for two flats, which were later sold to be replaced by two houses. Both houses have BTL mortgages on them, so the net capital value of the two is around £34k.
The pension-age regs disregard personal injury compensation with no time limit, so on the face of it there is a £50k disregard to apply and she will be entitled to HB.
But….does is matter that the payment was originally made while she was under pension age? Had she claimed at that time (I don’t know whether she did) there would have been a 52wk time limit, after which the money (or properties) would have to be held in a trust for the disregard to continue.
.