Diminution of Capital

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  • #23229
    Anonymous
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    Hello, am in the process of trying to put a spreadsheet together to work out diminution of capital cases and, looking at the guidance manual, it says that the lower capital limit does not apply in these cases and the tariff income starts from £0 instead of £3000.

    However, I can’t see anything in the regs that backs this up and the examples given are really confusing as one of them uses this rule and the other doesn’t 😕

    Surely the guidance manual must take this figure from somwhere in the regs and, if so, from where?

    Thanks

    #11551
    Anonymous
    Guest

    The reg that this comes under is Reg 103.
    No mention of this there, but do not know if any CDs that cover this? :15: 8)

    #11552
    Anonymous
    Guest

    I think a (not overly convincing) argument could be made that the £6,000 lower capital limit does not apply in the diminution calculation by virtue of reg 103(2) HBR 2006:

    “Capital shall not be treated as reduced over any period other than 13 benefit weeks [i:2e2234324b]or in any circumstances[/i:2e2234324b] other than those for which paragraph (1) provides.”

    (My emphasis, obviously.)

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