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Savings limit on Incapacity Benefit, DLA, Mobility, tax credits.
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# 1
bobmoat
Old 04-06-2009, 12:18 PM
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Default 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
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# 2
cattie
Old 04-06-2009, 12:35 PM
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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.
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Last edited by cattie; 04-06-2009 at 12:49 PM.
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# 3
Pepzofio
Old 04-06-2009, 12:42 PM
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Quote:
Originally Posted by cattie View Post
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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