Undeclared Capital and caravan purchase

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  • #22444
    Karen
    Participant

    Please advise how I would treat this case please as it has landed on my desk as an adjudication.

    Clmt received compensation payment over 5 years ago of £12,000, did not declare to LA, therefore benefit continued to be paid at full rate.

    LA discover that clmt had money, but he states that he purchased a holiday static caravan, that he stays in most weekends.

    Now, as the capital went straight to buy a holiday home – is this treated like a car and disregarded or as it is now valued at over £26,000 can we treat it as a 2nd home as they stay in it every weekend????

    any advice welcome

    #8062
    jamcon
    Participant

    Karen,

    In Commissioners Decision R(SB) 1/85, there was a dispute over the capital valuation of a chalet. Although it does not address your question directly, both the claimant and the DHSS regarded the chalet as a capital asset to be valued and there was no argument it was to be regarded as a personal possession.

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