- Posts: 6
× Members
Capiatl/Savings Limits
- P T Gadd
- Topic Author
- Offline
Less More
4 years 3 months ago #254918 by P T Gadd
Capiatl/Savings Limits was created by P T Gadd
Dear, Gary/BIS/Impression
Question relating to capital/savings limits
It is stated the first £6000 is ignored and capital/savings above this amount up to £16000, so effectively £10000 are subject to certain rules
Over £16000 then no benefit is awarded
Rules state that if you deliberately deprive yourself of capital/savings to gain benefit then notional capital will be applied and also tariff income
If you have diminished your capital/savings to meet your living expenses for example, this rule should not apply
Do the rules as mentioned apply to the first £6000 of any capital/savings or can you spend as you like and it really is ignored
Your comment on this matter would be appreciated
Regards, Paul G
Question relating to capital/savings limits
It is stated the first £6000 is ignored and capital/savings above this amount up to £16000, so effectively £10000 are subject to certain rules
Over £16000 then no benefit is awarded
Rules state that if you deliberately deprive yourself of capital/savings to gain benefit then notional capital will be applied and also tariff income
If you have diminished your capital/savings to meet your living expenses for example, this rule should not apply
Do the rules as mentioned apply to the first £6000 of any capital/savings or can you spend as you like and it really is ignored
Your comment on this matter would be appreciated
Regards, Paul G
Please Log in or Create an account to join the conversation.
- Gary
- Offline
Less More
- Posts: 8436
4 years 3 months ago #254945 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Capiatl/Savings Limits
Hi PG
If you are under SP age then tariff Income applies to bundles of £250 over £6,000 up to £16,000, if you have over £16,000 in savings then any means tested benefits you are on such as IR ESA, HB, UC will stop.
If you are of SP age or over then tariff income applies to bundles of £500 over £10,000 up to £16,000, any means tested benefits such as PC, HB will stop.
As you stated correctly, notional capital will apply if you deliberately deprive yourself of capital/savings. (this can be a grey area)
Any savings you have you can spend on what ever you want, it is your money, but if for instance you buy a Rolls Royce rather than a Skoda then you would more than likely be hit with notional capital.
Gary
If you are under SP age then tariff Income applies to bundles of £250 over £6,000 up to £16,000, if you have over £16,000 in savings then any means tested benefits you are on such as IR ESA, HB, UC will stop.
If you are of SP age or over then tariff income applies to bundles of £500 over £10,000 up to £16,000, any means tested benefits such as PC, HB will stop.
As you stated correctly, notional capital will apply if you deliberately deprive yourself of capital/savings. (this can be a grey area)
Any savings you have you can spend on what ever you want, it is your money, but if for instance you buy a Rolls Royce rather than a Skoda then you would more than likely be hit with notional capital.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Please Log in or Create an account to join the conversation.
- P T Gadd
- Topic Author
- Offline
Less More
- Posts: 6
4 years 3 months ago #254989 by P T Gadd
Replied by P T Gadd on topic Capiatl/Savings Limits
Hello Gary
Thank you for coming back to me
So just to clarify are savings under £6000 ignored or not
Regards
Paul G
Thank you for coming back to me
So just to clarify are savings under £6000 ignored or not
Regards
Paul G
Please Log in or Create an account to join the conversation.
- Gary
- Offline
Less More
- Posts: 8436
4 years 3 months ago #255018 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Capiatl/Savings Limits
Hi Paul
If you have savings less than £6k then they are ignored for any means tested benefits.
You may be asked to show bank statements for the last 3 months to verify that you have not hidden or given away any lump sums.
Gary
If you have savings less than £6k then they are ignored for any means tested benefits.
You may be asked to show bank statements for the last 3 months to verify that you have not hidden or given away any lump sums.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Please Log in or Create an account to join the conversation.
- denby
- Away
Less More
- Posts: 1305
4 years 3 months ago #255039 by denby
Replied by denby on topic Capiatl/Savings Limits
Hi Paul, this was decades back , but left me wary: an inheritance took us out of means tested benefit when my husband was unemployed and the children were too small for me to work much. It duly went, living quite frugally, on food, gas bills, children's shoes etc. But they queried how long it had lasted and accused us of intentional deprivation of capital as we did not have receipts for very much. So I would consider getting a box file or just a box, and getting in the habit of adding a receipt for every stupid thing you buy to it, in case. Hopefully if they asked and you showed them the box [?sent a photo of it] they would realise they had picked the wrong person to harass.
It was a hellish time and my poor husband, already on DLA for his smashed leg, had to take a school cleaning job for a while to get us out of the no-win situation. The "notional interest rate" has never changed as far as I know, and I would like them to show me where to invest that would give me the interest rate they assume!!!
Best wishes, Denby
It was a hellish time and my poor husband, already on DLA for his smashed leg, had to take a school cleaning job for a while to get us out of the no-win situation. The "notional interest rate" has never changed as far as I know, and I would like them to show me where to invest that would give me the interest rate they assume!!!
Best wishes, Denby
The following user(s) said Thank You: P T Gadd
Please Log in or Create an account to join the conversation.
- P T Gadd
- Topic Author
- Offline
Less More
- Posts: 6
4 years 3 months ago #255079 by P T Gadd
Replied by P T Gadd on topic Capiatl/Savings Limits
Hello Gary
I apologize for continuing the subject but your reply seems to suggest that even if your savings are below £6000 and then as you mention it is considered from bank statements your amount has say reduced from, £4000 to £1000 over a three month period, then it could possibly attract attention or am I being paranoid
Regards
Paul
I apologize for continuing the subject but your reply seems to suggest that even if your savings are below £6000 and then as you mention it is considered from bank statements your amount has say reduced from, £4000 to £1000 over a three month period, then it could possibly attract attention or am I being paranoid
Regards
Paul
Please Log in or Create an account to join the conversation.
Moderators: Gordon, Gary, BIS, Catherine, Wendy, Kelly, greekqueen, peter, Katherine, Super User, Chris, David