Capital – self employed

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  • #45754
    alant
    Participant

    We have a married couple (pension age) who are self-employed running a business. It is not a limited company. They have a bank account described as a business account, which is in their joint names. There is no company name mentioned on the bank statements, just their names. This account has over £30,000 in it, and has done for some considerable time.

    I believe that under the regs we should disregard business assets. However, should this capital be disregarded? If so, then fair enough. However, it just seems a bit strange that we disregard a bank account (containing £30,000) in the names of the claimant and his wife just because it is a business account.

    If we are supposed to disregard it, does it make any difference that the account appears to have what look very much like personal income and expenses going in and out?

    Thanks for any help you can give.

    #128787
    David Southam
    Participant

    Is the capital ‘part of the fund employed and risked in the business’? It sounds to me like you have evidence to show that it is not, in which case it can be treated as personal capital rather than part of the business. See http://www.rightsnet.org.uk/pdfs/rsb/4_85.pdf – paragraph 11.

    #128809
    dayglow
    Participant

    You may also find Commisioner’s Decision CH/4258/2004

    http://www.osscsc.gov.uk/judgmentfiles/j1766/CH%204258%202004-00.doc

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