Terms & Conditions

[Karen]

if someone has a 2nd property that they give away under consideration as ‘love, favour and affection’ …….. and then they receive it back a few years later under the same ‘love, favour and affection’… can the authority use the deprivation of capital rules to all it to add capital value for the full period or can you only take it for the period that the owns the property

The person who received the property started to rent it out and received rental income from it for the past 3 years, then they emigrated and gave the house back to the original owner

so, is there anyway to add the capital to the claim??

[Kevin D]

There seem to be two separate issues:

1) ACTUAL capital. Oversimplified, but this will normally boil down to whether it was the clmt’s or someone elses.

If something is ACTUAL capital, it cannot be notional capital.

2) If it is established that the time it not ACTUAL capital, then consideration is given to NOTIONAL capital. For notional capital, the correct test to apply is whether or not there was [u:4b3ccd0d47]a[/u:4b3ccd0d47] [b:4b3ccd0d47]significant operative purpose[/b:4b3ccd0d47] by the person to deprive him/herself of capital in order to increase, or obtain, benefit.

The purpose does not need to be the DOMINANT purpose; the (or “a”) purpose only needs to be SIGNIFICANT.

Hope that helps.

[Author]

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