Whose capital is it?

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    Our claimant won some money – over £16,000 – paid to him in his name only by cheque. However, he has said that he had an agreement with another party that if either of them won money in this joint pursuit – it would be shared 50/50. He has provided a statement as has the other party, to this effect. He has also got some evidence of large cash withdrawals over a number of days which he says were to pay the other person although they are not clearly for any amounts which add up to half the winnings. The DWP stopped IS only for a month and as their capital limit is only £8000 that suggests to me that they accepted half of the money was someone else’s. But – assuming we also accept this, as the winnings were initially paid to him, do we treat him as having over £16,000 initially, and it only reduced when paid over to other person, thus ending entitlement. Or, do we say he only ever had half that amount as it was never really all his, thus not having to end entitlement as the capital would then be well under £16,000 from the outset?

    Any thoughts on this one? Thanks very much!

    david farrar

    I would treat half the capital as the claimant’s

    The other half being held in trust for the third party


    Thanks very much.

    Would anyone hold a different view? It’s just that a decision maker has treated him as having all the capital and now they have appealed and I am looking at it again.



    My only thought on this is the situation where you have a lottery win and a syndicate. No written agrement beforehand? Then the person who claims is deemed to be the sole winner for tax purposes. Nice to have such a problem – LOL.

    In my view, until and unless the monies have left the customers account they should be treated as his. On a recent thread, stainsby disagreed and quoted several decisions but I think I should stand by my arguments in this type of vague “i won it in the bookies” case.

    Kevin D

    Not had time to check for direct relevance, but the following CDs dealt with the issue of who capital belonged to (in varying contexts):

    R(SB) 23/85
    R(IS) 01/90 (aka CIS/0057/1989)
    R(IS) 02/93 (aka CIS/0449/1990)



    I will check those out. Many thanks Kevin for these and all for their contribution. Very helpful as ever!

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