Backdating Council Tax Exemption Severely Mentally Impaired Effect on other benefits

gray1404
gray1404 Posts: 88 Forumite
I have worked out that a family member is entitled to an exemption on their Council Tax due them being severely mentally umpired. We visited the GP who signed the form from the local council. I have not sent this back yet.



However, we are concerned that a backdating request for the exemption (i.e. they pay back council tax that has already been paid) would have a further impact on their capital and their benefits would reduce further.

Any advise on this matter would be greatly appreciated. Would it be wise not to request backdating for this?

Comments

  • Mersey_2
    Mersey_2 Posts: 1,679 Forumite
    Redress (of any kind) isn't usually counted as income/capital as it's a one off windfall; but, best double checking with a welfare rights specialist.
    Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.
  • phillw
    phillw Posts: 5,594 Forumite
    First Anniversary Name Dropper First Post
    edited 18 November 2017 at 10:36AM
    Mersey wrote: »
    Redress (of any kind) isn't usually counted as income/capital as it's a one off windfall; but, best double checking with a welfare rights specialist.

    It's not a windfall, it's putting him back in a position he would have been in had he not been paying too much on his council tax. You need advice obviously, but you would need to inform a change of circumstances.

    I would certainly claim it & declare it. It's not that big a deal if it reduces the benefits, as you'll have a pot of money that you can live from. If he's also not paying council tax then I doubt he'll be noticeably worse off. As long as you avoid deprivation of capital rules then could spend the money until it drops below the £6000 mark anyway & then you get full benefits back, or you could invest it to try to get a return that makes up for the loss in benefits.

    Is there a deadline for when you have to claim? He could even start spending some of his capital now and then the refund wouldn't have as much impact anyway.
  • CIS
    CIS Posts: 12,260 Forumite
    Name Dropper First Post First Anniversary
    Is there a deadline for when you have to claim? He could even start spending some of his capital now and then the refund wouldn't have as much impact anyway.
    In principal there is no limit on how far backdating can apply and you have up to 6 years from when you realise you are entitled to place a claim.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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