Holiday caravan

petunia100

My mother has a holiday static caravan which is worth approx £20,000. It looks as though she will become unemployed soon and given her age will be unlikely to find work quickly. Will her holiday home affect her housing benefit if she needs to cliam it?

It does not generate any income and is used just by close family?

enabledebra

It would be disregarded as capital as it should be classed as a personal possession. The only way it would cause a problem is if the LA decided it was bought to get rid of savings so that HB could be claimed, and that seems unlikely on the face of it. It's not the same as owning a property.

oldestrocker

enabledebra wrote: »

It would be disregarded as capital as it should be classed as a personal possession. The only way it would cause a problem is if the LA decided it was bought to get rid of savings so that HB could be claimed, and that seems unlikely on the face of it. It's not the same as owning a property.

I'm not to sure that that argument would stand up. Personal possessions are what they are, items of a personal nature.

I do know that land which was purchased to put a caravan on for purely personal reasons (recreation & fishing) is treated as an asset for HB & CT purposes. The Council would reduce the value by about 10% to cover selling costs.

Jowo_2

Here is an actual DWP guide that the decision makers use to help them understand these complex regulations.

http://www.dwp.gov.uk/docs/hbgm-bw1-assessment-of-capital.pdf

"capital includes all categories of holdings which have a clear monetary value...A person’s capital resources are represented by the amount that they beneficially own..[.that is the person who stands to gain]"

Work your way through it, it does say that caravans are excluded but I don't know if this includes static caravans with letting potential as holiday homes or if they are included as property or not. Read through it, what do you think? I am not familiar with the rules but this is obviously a key guide.

[Deleted User]

sorry but i dont see how a caravan could be seen as a financial asset for benefit purposes,if that was the case then why not a car?

Jowo_2

As far as I know, a car is considered an everyday ordinary living expense. I doubt a holiday home can be considered in similar terms as a necessity. Can anyone provide a definate link or quote about a holiday home being considered as capital, rather than speculation/conjecture. I only whizzed through the DWP doc but it wasn't clear to me.

oldestrocker

Jowo wrote: »

As far as I know, a car is considered an everyday ordinary living expense. I doubt a holiday home can be considered in similar terms as a necessity. Can anyone provide a definate link or quote about a holiday home being considered as capital, rather than speculation/conjecture. I only whizzed through the DWP doc but it wasn't clear to me.

Why stop at a mobile holiday home? It would be no different than a holiday cottage except how it is built.

oldestrocker

woodbine wrote: »

sorry but i dont see how a caravan could be seen as a financial asset for benefit purposes,if that was the case then why not a car?

There is a world of difference between a touring caravan and a fixed sited holiday home.

enabledebra

I am basing my opinion that it is a possession on a commissioners decision
http://www.administrativeappeals.tribunals.gov.uk/aspx/view.aspx?id=2315 so as long as it resembles this case in the pertinent facts then it should be disregarded.

The HB guidance to decision makers specifies that caravans will be disregarded as possessions which is an indication of how they are asked to apply the decision but as ever there will always be exceptions.

oldestrocker

Unless there is something in Case Law to test this against, I think you will in the first place have to put the case to the LA. Let them do the leg work, and if they come back saying that it is an asset, ask them on what grounds they have made that decision.

I have read that case and I note that it first of all relates to the main or only residence. Also that it is on a NON residential site.

OK yes the case could help, but if it was me, I would put it to the LA to see what they think.

enabledebra

Upper tribunal decisions are case law and binding on decision makers and first tier tribunals.