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when is cash gift `change of circumstances?'
- droopy
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11 years 4 weeks ago - 11 years 4 weeks ago #119361 by droopy
when is cash gift `change of circumstances?' was created by droopy
(Firstly, this is not an urgent topic so definitely not a priority for moderators ...)
-When would a cash gift constitute a need to tell DWP about `a change of circumstances' if it does not push your savings above £6000?
(it would not be counted as taxable income because the sum of money is not large enough - i do not recieve housing benefit and esa is not taxable income.)
If i am supposed to declare it, and my claim will therefore be suspended while the details are investigated - for however long that would take - or if this would somehow throw an even bigger spanner in the works for me, i can just refuse to take the cash gift.
I have been attempting to find an answer for this question - on this site and elsewhere on the internet - but to no avail.
Grateful for any info,
droopy
-When would a cash gift constitute a need to tell DWP about `a change of circumstances' if it does not push your savings above £6000?
(it would not be counted as taxable income because the sum of money is not large enough - i do not recieve housing benefit and esa is not taxable income.)
If i am supposed to declare it, and my claim will therefore be suspended while the details are investigated - for however long that would take - or if this would somehow throw an even bigger spanner in the works for me, i can just refuse to take the cash gift.
I have been attempting to find an answer for this question - on this site and elsewhere on the internet - but to no avail.
Grateful for any info,
droopy
Last edit: 11 years 4 weeks ago by Gordon.
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- Gordon
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11 years 4 weeks ago #119365 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic when is cash gift `change of circumstances?'
droopy
You are required to inform the DWP if your assets and savings exceed £6000 and you are receiving an Income Related benefit such as ESA(IR) or Income Support, whether it is taxable or not is not relevant.
So if your savings and assets do not exceed £6000 then there is no specific requirement on you to notify the DWP, however, the banks do notify a variety of Government agencies when large deposits are made to a claimants account, so if this pushes you close to the limit the DWP may write to you about the payment.
It's not possible to say whether they would suspend your payments or not, but I would not expect this to happen providing you were prompt in replying to any request for information that they might make.
Gordon
You are required to inform the DWP if your assets and savings exceed £6000 and you are receiving an Income Related benefit such as ESA(IR) or Income Support, whether it is taxable or not is not relevant.
So if your savings and assets do not exceed £6000 then there is no specific requirement on you to notify the DWP, however, the banks do notify a variety of Government agencies when large deposits are made to a claimants account, so if this pushes you close to the limit the DWP may write to you about the payment.
It's not possible to say whether they would suspend your payments or not, but I would not expect this to happen providing you were prompt in replying to any request for information that they might make.
Gordon
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- slugsta
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11 years 4 weeks ago #119369 by slugsta
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by slugsta on topic when is cash gift `change of circumstances?'
Droopy,
If you were to refuse the gift, you should be aware that you could be treated as if you had actually received the money if DWP found out and judged that you had refused the gift in order to remain eligible for income-related benefits (look up 'deprivation of capital').
If you were to refuse the gift, you should be aware that you could be treated as if you had actually received the money if DWP found out and judged that you had refused the gift in order to remain eligible for income-related benefits (look up 'deprivation of capital').
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- Jim Allison BSc, Inst LE, MBIM; MA (Consumer Protection & Social Welfare Law)
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11 years 4 weeks ago #119376 by Jim Allison BSc, Inst LE, MBIM; MA (Consumer Protection & Social Welfare Law)
PLEASE READ THE SPOTLIGHTS AREA OF THE FORUM REGULARLY, OTHERWISE YOU MAY MISS OUT ON IMPORTANT INFORMATION. Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Jim Allison BSc, Inst LE, MBIM; MA (Consumer Protection & Social Welfare Law) on topic when is cash gift `change of circumstances?'
If I were you I'd invest it in buying some Premium Bonds.
I had a similar situation last year, and much to my surprise although I informed the DWP they said it was OK.
I had a similar situation last year, and much to my surprise although I informed the DWP they said it was OK.
PLEASE READ THE SPOTLIGHTS AREA OF THE FORUM REGULARLY, OTHERWISE YOU MAY MISS OUT ON IMPORTANT INFORMATION. Nothing on this board constitutes legal advice - always consult a professional about specific problems
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11 years 4 weeks ago #119378 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic when is cash gift `change of circumstances?'
Jim
Premium Bonds are classed as capital in regard to Income Related benefits and therefore continue to count towards the £6000 limit, so there is no advantage in the OP in doing this other than the potential for them winning a prize.
Gordon
Premium Bonds are classed as capital in regard to Income Related benefits and therefore continue to count towards the £6000 limit, so there is no advantage in the OP in doing this other than the potential for them winning a prize.
Gordon
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- Jim Allison BSc, Inst LE, MBIM; MA (Consumer Protection & Social Welfare Law)
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11 years 4 weeks ago #119426 by Jim Allison BSc, Inst LE, MBIM; MA (Consumer Protection & Social Welfare Law)
PLEASE READ THE SPOTLIGHTS AREA OF THE FORUM REGULARLY, OTHERWISE YOU MAY MISS OUT ON IMPORTANT INFORMATION. Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Jim Allison BSc, Inst LE, MBIM; MA (Consumer Protection & Social Welfare Law) on topic when is cash gift `change of circumstances?'
Sorry Gordon, I'm not in receipt of any Income Related benefits, so no doubt that's why the DWP advised me accordingly.
Jim
Jim
PLEASE READ THE SPOTLIGHTS AREA OF THE FORUM REGULARLY, OTHERWISE YOU MAY MISS OUT ON IMPORTANT INFORMATION. Nothing on this board constitutes legal advice - always consult a professional about specific problems
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