Share Save schemes

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  • #19699
    Anonymous
    Guest

    I have a claimant who is paying into a share save scheme with her employer. She pays £50pcm and says she does not have any certificates as yet.

    At what point should the monies be treated as capital?? She has a few quid in the bank already so I don’t want to disregard it when a tariff income should apply.

    Zebedee seems to be not use on this one!

    Thanks

    #732
    David
    Participant

    Regarding your last point – now there’s a surprise!

    I think as they will have a value, you would take them into account whether or not there are any certificates. It should be possible for claimant to get evidence of the amount paid in to the scheme from the employer. However, if there’s only a small amount in the bank, I doubt if tariff income will come into the assessment.

    #733
    Anonymous
    Guest

    Appreciate what you are saying, Dan, but what value does her “investment” have at present?
    Reg 47 says
    [quote:b408d8992f]Capital which a claimant possesses in the United Kingdom shall be calculated—
    (a) except in a case to which sub-paragraph (b) applies, at its current market or surrender value less—
    (i) where there would be expenses attributable to sale, 10 per cent.; and
    (ii) the amount of any encumbrance secured on it; [/quote:b408d8992f]

    From what you have said there may be no surrender value at present, so maybe the question is, can she get at the money invested or is it tied in? 8)

    If there is no surrender value, you may have to consider deprivation. Has she done this for the purpose of obtaining (more) Benefit? 😉

    #734
    David
    Participant

    I am fairly certain that with all these schemes (and there are several types) it’s possible to get your money out.

    From the original posting, my guess would be the employee will be contracted to pay into the scheme for a fixed period. At the end of that period he will be have the option to buy shares – but he wont have to. Certainly, with this type, the money paid in can be withdrawn at any time – it’s just any tax bonuses are likely to be lost & if within a year of starting , no interest paid either.

    Consequently, there would be an associated capital value

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