Lottery Win

Dancing_Shoes

This is a bit of a silly hypothetical question but the thought popped into my head last night and I can't help but wonder.
What would happen if the NRP won the lottery? Would he have to give a percentage to the pwc? Would the CSA class this as income?
Now to throw a spanner in the works, what if the NRPP won the lottery and put it all into a sole account in her name only??

DUTR

I asked this before, apparently they assume 8% for assesment purposes (above the £65K) however as interest rates have dropped this 8% may be different now, I would imagine though for the PWC's living on claiming benefits it may detriment what they can claim for so could end up worse off :eek:, good luck with the draw though

Donedoingdebt

8% of what, the actual winning sum; ie: win a million & the CSA take 8% - £80,000?

I always assumed the CSA could only base their assessment on any money earned.

Therefore, in my opinion, the CSA should only base any assessment on interest earned on the 1 million. ie: 5% interest earned on 1 million - £50,000 a year & then they should take their 15% or whatever cut from that - £7,500 a year divided by 12 for a monthly payment of £625.

As I say, ONLY MY OPINION!!!!

DUTR

Donedoingdebt wrote: »

8% of what, the actual winning sum; ie: win a million & the CSA take 8% - £80,000?

I always assumed the CSA could only base their assessment on any money earned.

Therefore, in my opinion, the CSA should only base any assessment on interest earned on the 1 million. ie: 5% interest earned on 1 million - £50,000 a year & then they should take their 15% or whatever cut from that - £7,500 a year divided by 12 for a monthly payment of £625.

As I say, ONLY MY OPINION!!!!

I think they assume 8% of the winnings as income, however it may not be as straight cut as even with the more realistic 5%, that would be gross and subject to higher rate tax at 40%.
Personally I don't think any of it should be subject to assesment as the usual costs do not increase :cool:

karenx

What about if the NRP had inherited money?

DUTR

karenx wrote: »

What about if the NRP had inherited money?

I think it all falls under the banner of assets

LizzieS_2

DUTR wrote: »

I think they assume 8% of the winnings as income,

Assume 8% interest, capital itself is not taken into account. A large win would also cancel out tax credits.

Dancing_Shoes

So if it is under £65k (is that the asset threshold?) then none of it can be taken into account?
then over that figure they would take 8% and leave the NRP with 92%?
What then happens to monthly payments?

If I were to win and I am the NRPP and I put it all in my sole name then surely the pwc has no claim over this?

DUTR

Dancing_Shoes wrote: »

So if it is under £65k (is that the asset threshold?) then none of it can be taken into account?
then over that figure they would take 8% and leave the NRP with 92%?
What then happens to monthly payments?

If I were to win and I am the NRPP and I put it all in my sole name then surely the pwc has no claim over this?

Prolly still not as clear cut as that, suppose as an NRP you have £15k of savings and win say £70, that would leave you with £85k , but more so, why would the other party need to know that you had won anyway?

CRANKY40

I always understood it to be that they can't touch the capital, but you would be assumed to be receiving interest on your capital, so would have to declare the interest as income. I've never heard of having to hand over some of your winnings.

Blonde_Bint

I think the pwc would be entitled to some of your lottery winnings because if the child was in the nrp house child would benefit from the winnings but because child isnt he wont. most nrps would spend their winnings on all their children there are those who wouldnt though, so this rule is for them I suppose.

but I dont think you should have to give pwc any of your winnings on the lottery because this was pure chance, a punt I feel like if pwc are entitled to this then it entitles them to a percentage of anything you ever get in your life. If pwc has a windfall will nrp be entitled to any of it as the child does spend time in the nrp household........... where does it end:eek: