Savings limit on Incapacity Benefit, DLA, Mobility, tax credits.

My partner and i have recently seperated and i have agreed to buy her out of the house. Effectively giving her half the equity which works out at £16K. I'm concerned that this amount may effect the benefits she receives. She has been registered disabled for almost ten years, receives Incapacity benefit, Disabled living allowance, has a car on Mobility and has recently become eligible for tax credits. She also works part time. We were not married, have no children and have split amicably hence my concern. I have heard that there is a limit of £12K, any clear advice would be greatly appreciated. Thanks

Comments

  • cattie
    cattie Posts: 8,841
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    edited 4 June 2009 at 11:49AM
    There are no capital limits for IB & DLA & as far as I know wtc. With wtc any interest from savings is counted as income, but the capital itself doesn't count.

    If she has £16k then she will not be able to claim any means tested benefits. Under £6k means tested benefits not affected, over £6k up to the cut off point of £16k means tested benefits are reduced by £1 for every £250 capital a claimant has. I believe working tax credit (wtc) is a means tested benefit.
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
  • Pepzofio
    Pepzofio Posts: 540 Forumite
    cattie wrote: »
    There are no capital limits for IB & DLA & as far as I know wtc. With wtc any interest from savings is counted as interest, but the capital itself doesn't count.

    If she has £16k then she will not be able to claim any means tested benefits. Under £6k means tested benefits not affected, over £6k up to the cut off point of £16k means tested benefits are reduced by £1 for every £250 capital a claimant has. I believe working tax credit (wtc) is a means tested benefit.

    Just to clarify re WTC, the first paragraph is correct - although WTC is technically means tested (in that it is affected by your income) it is not subject to the tariff income rules mentioned in the second paragraph.
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