Savings Credit, Notional capital

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    We have a claimant already in receipt of savings Credit and Council tax benefit as she is over 80 she has an open-ended AIP.  She moved address earlier this year and we believe she has deprived herself of  capital from the proceeds of the sale in order to continue to claim benefit.

    As she is in receipt of Savings Credit are we allowed to include notional capital or can we only amend the AIF to over £16,000 with actual capital.


    Hi David,

    My interpretation of HBR60 27(8)(b)would be actual capital.

    Maybe someone else would beg to differ?

    Many thanks,

    Lesley :davie:

    Andy Thurman

    Hi Lesley,

    I will have a little grovel!!

    I’d say it depends on the PS position. Para 8 of HBSPC reg 27:
    This paragraph applies if—
    (a) the Secretary of State notifies the relevant authority that the claimant´s capital has been determined as being £16,000 or less;
    (b) subsequent to that determination the claimant´s capital rises to more than £16,000; and
    (c) the increase occurs whilst there is in force an assessed income period within the meaning of sections 6 and 9 of the State Pension Credit Act.

    So, have PS taken a conscious decision over this capital received and then disposed of? If they have (and they have decided the disposal was not “deprivation”, then I would say that you are bound by that (you could choose to check this/request it is looked at if you feel so motivated).

    If PS have not looked at the capital due to an existing AIP, then the para above kicks in and the capital is your call using regs 43-49 (as per reg 27) which includes reg 47 – notional capital! 🙂

    The third possibility (I can think of) is that PS have not yet been told/are yet to decide. In which case, I’d make sure they know and await their call before actioning as above.

    Andy Thurman

    That said, if you are considering notional you will need to properly establish the reason for the disposal, calculate a value (allowing any expenditure that cannot be attributed to that reason) and do the dim cap calc!!


    Thanks for the replies.

    The PS are not interested in the capital as she has an open-ended AIP due to her age and they will only consider beneficial capital changes.

    I needed to check if we can use notional capital to over ride the £16,000 limit or if we are limited to actual capital.

    Andy Thurman

    On that basis, yes you can. Have fun!

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