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Disposing of capital - allowed?
Comments
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The correct legal test in determining deprivation of capital is whether the disposal of capital was with a "significant operative purpose" to obtain, or increase, benefit (I'm assuming the benefit in question is one of income-based JSA or Income Support or income-related ESA).
Note that it does not have to be the MAIN purpose.
The test does not appear in bare legislation, but has been long established through decisions by the former Social Security Commissioners and, now, Judges of the Upper Tribunal. Such decisions are made in a jurisdiction considered to be similar to the High Court.
If the expenditure is not made with a "significant operative purpose" of increasing benefit, it will not count as deprivation of capital / notional capital. Ultimately, it is a judgement call by the DWP, but the fact a decision maker may personally not like the expenditure is irrelevant - it is the legal test that counts.0 -
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