Housing benefit and dsiregarded capital

Comicrainbows

My friend is currently living in a van on her land which is jointly owned with an ex partner. On the land is a derelict barn which is currently uninhabitable. The intention is to do the barn up as holiday lets so it is not considered as residential property. They are not as yet running a business.

My friend has recently separated from her partner and plans to rent a property and claim housing benefit. She understands that in order to get housing benefit she needs to have less than £16,000 capital. Given her current situation would the property be disregarded for capital. If not is there anyway in which she can qualify for housing benefit and not be disqualified under the deprivation of capital rule, e.g. could she form a company and run it as a business, put the property in her ex-partner's name, etc.

She also has savings of over £16,000 in a savings account. Is there any way she could for example put this in someone else's name so it would not be seen as capital.

Any help would be greatly appreciated as her income is very limited.

danielanthony

Comicrainbows wrote: »

She also has savings of over £16,000 in a savings account. Is there any way she could for example put this in someone else's name so it would not be seen as capital.

No, as this would be fraud. She needs to spend her savings on supporting herself, this is what they are for....

pmlindyloo

Comicrainbows wrote: »

My friend is currently living in a van on her land which is jointly owned with an ex partner. On the land is a derelict barn which is currently uninhabitable. The intention is to do the barn up as holiday lets so it is not considered as residential property. They are not as yet running a business.

My friend has recently separated from her partner and plans to rent a property and claim housing benefit. She understands that in order to get housing benefit she needs to have less than £16,000 capital. Given her current situation would the property be disregarded for capital. If not is there anyway in which she can qualify for housing benefit and not be disqualified under the deprivation of capital rule, e.g. could she form a company and run it as a business, put the property in her ex-partner's name, etc.

She also has savings of over £16,000 in a savings account. Is there any way she could for example put this in someone else's name so it would not be seen as capital.

Any help would be greatly appreciated as her income is very limited.

This is very complicated and it could be that no one on here knows all the answers. You need specialist advice.

As regards capital taken into account then I found this:

Property you own but do not occupy [HB Sch 6, HB(SPC) Sch 6; CTB Sch 5, CTB(SPC) Sch 4]

The value of this property is counted as capital but you may be able to get HB/CTB even if the value of the property means that your savings are more than £16,000. This is because the value of the property may be ignored when your savings are worked out, in certain circumstances.
If the property is occupied by an elderly or disabled relative as their home, its value is not taken into account for as long as it is so occupied.
If you have recently acquired the property and you intend to occupy it as your home, its value may not be counted for 26 weeks, or for a longer period if reasonable, from the date you acquired it.
If you are trying to sell the property, its value may not be counted for the first 26 weeks after you start doing this. It may not be counted for longer than this if you are finding it difficult to sell the property.
If you are carrying out essential repairs or alterations so that you can live in the property, its value may not be counted for a period of 26 weeks from the date you first arranged for repairs to be carried out. It may not be counted for longer than this if you are finding it difficult to finish the work.
If you are taking legal action so that you can live in the property, its value may not be counted for the first 26 weeks after you start doing this. It may not be counted for longer than this if legal action is continuing and you cannot live in the property.
If you have left the property after the breakdown of a relationship, and it is occupied by your former partner, its value may not be counted for the first 26 weeks after you left. If the property is occupied by your former partner and they are a lone parent, the property will not be counted for as long as it continues to be so occupied.

Now, as to whether, carrying out repairs so that the building can be turned into holiday lets counts, I do not know the answer. You would need to ask the housing department.

As regards her savings being above £16000 then this would make her ineligible for HB.

She cannot give it away ot put it in someone else's name. This would be seen as deprivation of capital.

I also believe that putting the property into a company might also fall under the deprivation of capital rules.

Is there any reason why she can't use her savings to rent somewhere?

If she is using her savings to renovate the derelict building then she needs to think of a different way of doing it it.

Just my opinion.

HappyMJ

Selling or valuing a half share of land, co-owned with someone else, for a few pounds would be easy enough to do but it's the £16,000+ sitting in a savings account that would be harder. If the £16,000 was invested in the business and some time spent doing up the barn then they be an option open to her as she will no longer have the capital.

baza52

So your asking us to help your friend commit fraud.

Caz3121

She is very fortunate to have both assets and cash in the bank, she does not have to rely on taxpayers to support her. I am confused as why she wants to commit fraud rather than use her own money to support herself....if she is worried the savings will go too fast, she could get her ex to buy her out the barn to give her a larger pot or she could get a job

Jumbo_Cod

How much over £16,000 in savings does she have? If it's not a whole lot she can wait until she spends it on rent or whatever then apply for housing benefits.

real1314

Comicrainbows wrote: »

My friend is currently living in a van on her land which is jointly owned with an ex partner. On the land is a derelict barn which is currently uninhabitable. The intention is to do the barn up as holiday lets so it is not considered as residential property. They are not as yet running a business.

My friend has recently separated from her partner and plans to rent a property and claim housing benefit. She understands that in order to get housing benefit she needs to have less than £16,000 capital. Given her current situation would the property be disregarded for capital. If not is there anyway in which she can qualify for housing benefit and not be disqualified under the deprivation of capital rule, e.g. could she form a company and run it as a business, put the property in her ex-partner's name, etc.

She also has savings of over £16,000 in a savings account. Is there any way she could for example put this in someone else's name so it would not be seen as capital.

Any help would be greatly appreciated as her income is very limited.

Why would your friend expect to be supported by taxpayers who earn as little as £10k a year but pay tax and have no savings, whilst receiving nothing back, but she has £16,000 and some assets?

Is she really that selfish?

Anyway, the answers are 1) No she can't get the properties disregarded; and 2)i) giving the cash away would be deprivation os capital or 2)ii) Giving it to someone else to "look after" would be fraud. :cool:

Jumbo_Cod

Most people who earn as little as £10k per year don't pay income tax after disregards and allowances. And they get plenty in benefits through income support, working tax credits, child benefits, and housing benefits so they most definitely receive some back.

baza52

Jumbo_Cod wrote: »

Most people who earn as little as £10k per year don't pay income tax after disregards and allowances. And they get plenty in benefits through income support, working tax credits, child benefits, and housing benefits so they most definitely receive some back.

A single person might not be entitled to ANY of the above.

Jumbo_Cod

No. A single person is entitled to more benefits when they file as a couple, if one of them is not earning. Under a claim a couple receives a higher "applicable amount" (amount the government says is the minimum to live on). So if there is only one income between the couple, the single person can earn more benefits than before.