Capital held to purchase a property – not!

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  • #31813
    mpullin
    Participant

    The claimant sold a property (didn’t tell us) and states that monies will be used to purchase another property – however they have spent a total of £33831.75 in 21 weeks – All the proceeds were deposited in a current account. It has not been used to pay off debts although they have been living well by the look of the bank statements – even loaning out money to friends! I am happy that sch.6 and sch 5 do not apply

    However for the submission to the TS a colleague (now away on holiday for 3 weeks) has inserted a paragraph to claimant which she extracted from case law on the subject –

    [quote:f0d0c5c4ed]”There has to be an element of certainty about the intended use of capital in order for the disregard to apply. The claimant must be able to demonstrate at the relevant time a practical commitment to a purchase that is bound to involve using the money kept aside for that purpose. Such a commitment can be demonstrated for example by a binding contract for purchase which is not yet completed, or by a firm commitment (e.g. an agreement ‘subject to contract’) in circumstances where the tribunal is satisfied the money could not reasonably be expected to be withdrawn from the project and used for other purposes such as living expenses instead”[/quote:f0d0c5c4ed]
    Unfortunately she has not put the actual case ref 🙁 I have looked at the case law on this site but am still no further forward

    Does anyone have any idea which case law she is referring to??

    Many many thanks to anyone who can help!

    #88965
    Anonymous
    Guest

    R(IS) 7/01, mentioned in this thread: http://hbinfo.org/forum/viewtopic.php?t=21582

    #88966
    mpullin
    Participant

    Many thanks for that – I checked the Case Law pages but not this page- doh! 😳

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