Deprivation of capital allowances and time allowed before claiming

Happy_feet

Hi,

I'm hoping someone out there can help and put me straight. Here's the situation:

I'm a single, (part time)working parent of 2 year old and am hoping to return to uni either this year or next as I'm currently pretty unhappy at work.

I have just had to sell my house which has left me approx 25k capital. Although I have a 6k savings allowance I was hoping I'd be able to legitimately give at least some of my capital to my son for his future. Therefor being able to claim help with housing benefit whilst at uni?
ie: if I gave him say 10k now (in an account without my name on) would this come under the rules for deprivation of capital if then in 18 months time I was then to put in a claim for HB/IS.

Also, if this would be against the rules am I allowed to give away smaller amount more often?

Thanks

karenx

I'm pretty sure that would be seen as depreciation. Why can't you just use some of it for everyday living and bills etc??

fluffymovie

Your motives would be examined but tbh, if you are asking the question, it seems like you may already be considering giving it to your son even though you need it to live on and this would be deprivation,

Personal view only - As your child is only 2, would it not be better for him to see his parent working and not claiming benefits than having money in the bank for the next 16 years and a parent who is claiming?

dmg24

karenx wrote: »

I'm pretty sure that would be seen as depreciation. Why can't you just use some of it for everyday living and bills etc??

Agreed - giving away money in order to claim benefits is deprivation of capital.

sunnyone

Happy_feet wrote: »

Hi,

I'm hoping someone out there can help and put me straight. Here's the situation:

I'm a single, (part time)working parent of 2 year old and am hoping to return to uni either this year or next as I'm currently pretty unhappy at work.

I have just had to sell my house which has left me approx 25k capital. Although I have a 6k savings allowance I was hoping I'd be able to legitimately give at least some of my capital to my son for his future. Therefor being able to claim help with housing benefit whilst at uni?
ie: if I gave him say 10k now (in an account without my name on) would this come under the rules for deprivation of capital if then in 18 months time I was then to put in a claim for HB/IS.

Also, if this would be against the rules am I allowed to give away smaller amount more often?

Thanks, Becca

Basicly how can I have my money and get every benefit going then?

You cant and why should you be able too?

McKneff

No you are not allowed to give it away and yes it would be deprivation of capital.
Even planning giving small amounts away more often would be deemed the same.
You obviously know what the term 'deprivation of capital' means.
You would be committing fraud and they would, in time, catch up with you.
Remember, its us, the tax payer, that would be paying your housing benefit
while you tried to find ways of not spending your money.
I do understand where youre coming from but its a no no I'm afraid.

healy

karenx wrote: »

I'm pretty sure that would be seen as depreciation. Why can't you just use some of it for everyday living and bills etc??

I think you mean deprivation not depreciation

Happy_feet

Thanks for the advice. I guess it's not something that can be done.

However, in my defense I was not suggesting keeping all the money and trying to claim benefits for next 16 yrs. I'm aware I would have to use most of it to fund going to uni (rent nursery everyday living etc). It would probably last maybe 2 out of 5 years study (1 yr access, 4 yr scottish degree), then would have to claim help for final years of study. I was just hoping I could give some to my son whilst I'm still working and wondered if that would effect me claiming help in the future when the rest of the money runs out in a couple of years.

I do not claim any benefits and never have and I do not plan to after competing my degree.

sunnyone

Happy_feet wrote: »

Thanks for the advice. I guess it's not something that can be done.

However, in my defense I was not suggesting keeping all the money and trying to claim benefits for next 16 yrs. I'm aware I would have to use most of it to fund going to uni (rent nursery everyday living etc). It would probably last maybe 2 out of 5 years study (1 yr access, 4 yr scottish degree), then would have to claim help for final years of study. I was just hoping I could give some to my son whilst I'm still working and wondered if that would effect me claiming help in the future when the rest of the money runs out in a couple of years.

I do not claim any benefits and never have and I do not plan to after competing my degree.

You dont claim child tax credits or child benefit?

No one plans to claim benefits, life happens and the benefits safety net is there to help people when they need it the most, there are thousands of unemployed graduates.

Oldernotwiser

Happy_feet wrote: »

Thanks for the advice. I guess it's not something that can be done.

However, in my defense I was not suggesting keeping all the money and trying to claim benefits for next 16 yrs. I'm aware I would have to use most of it to fund going to uni (rent nursery everyday living etc). It would probably last maybe 2 out of 5 years study (1 yr access, 4 yr scottish degree), then would have to claim help for final years of study. I was just hoping I could give some to my son whilst I'm still working and wondered if that would effect me claiming help in the future when the rest of the money runs out in a couple of years.

I do not claim any benefits and never have and I do not plan to after competing my degree.

But your degree, with some childcare, would be funded,as would an Access course in Scotland,although a bit of savings to top it up would obvioiusly be useful.

If you're trying to avoid taking out a student loan for some of your study period then you need to be aware that any benefits will be assessed as if you had taken the loan out.

Happy_feet

sunnyone wrote: »

You dont claim child tax credits or child benefit?

No one plans to claim benefits, life happens and the benefits safety net is there to help people when they need it the most, there are thousands of unemployed graduates.

Yes of course i get tax credits and child benefit like almost every other parent in the UK. I didn't think those were the benefits we were talking about.