Deprivation of capital?

hundredk

Situation as follows.

Two brothers A and B living in the same property, owned as tenants in common, A having 2/3 share and B 1/3.

B has claimed means tested JSA for 7+ years.

If B gifts his 1/3 share to A would this affect his JSA claim having disposed of a £30k ish asset?

If A subsequently became landlord to B and B claimed HB this would be a contrived tenancy?

Any links to specifics on these two points appreciated.

Thanks

specialboy

B won't be able to claim housing benefit for a house he previously owned.

hundredk

specialboy wrote: »

B won't be able to claim housing benefit for a house he previously owned.

Would he be able to continue claiming JSA?

[Deleted User]

probably not income based,depends on what he intends to do with the money,it might be ignored for 6 months if he's going to use it towards buying another property

hundredk

woodbine wrote: »

probably not income based,depends on what he intends to do with the money,it might be ignored for 6 months if he's going to use it towards buying another property

everything would stay the same except B would no longer own a 30k share. There wouldn't be any money exchanged from A to B. B would gift the asset.

FBaby

hundredk wrote: »

everything would stay the same except B would no longer own a 30k share. There wouldn't be any money exchanged from A to B. B would gift the asset.

Then how can this not be deprivation of assets? It is in the exact two words, depriving oneself of an asset!!`

hundredk

FBaby wrote: »

Then how can this not be deprivation of assets? It is in the exact two words, depriving oneself of an asset!!`

I don't know, that's what I'm trying to establish. B is already receiving JSA whilst living in a house he owns 33% of. If he doesn't claim any more (ie HB), in terms of claiming JSA has he still deprived himself of funds by giving his asset away?

There are other circumstances which are complicated but basically A has convinced B to gift his share to A. I'd like to prevent that happening.

TELLIT01

I really don't think there is a simple answer to the question of continuing entitlement to JSA. Immediate thoughts are that it probably would be considered to be deprivation of capital, but I don't know if the scenario has been played out in way which would create case law for a DM to work from. If it hasn't it will be down to the interpretation of an individual Decision Maker and therefore open to appeal.
I'm curious about the reasoning behind the original idea. It does sound more like some kind of tax fiddle than anything else.

NYM

hundredk wrote: »

I don't know, that's what I'm trying to establish. B is already receiving JSA whilst living in a house he owns 33% of. If he doesn't claim any more (ie HB), in terms of claiming JSA has he still deprived himself of funds by giving his asset away?

There are other circumstances which are complicated but basically A has convinced B to gift his share to A. I'd like to prevent that happening.

I've just read one of your other threads....yes, I'm nosy

Is 'B' the easily influenced brother ? Did you gift/sell your share of the property to 'A' ....

It's confusing..:(

BigAunty

specialboy wrote: »

B won't be able to claim housing benefit for a house he previously owned.

Isn't this restricted for a 5 year period after they have sold their share or has this changed?

BigAunty

hundredk wrote: »

everything would stay the same except B would no longer own a 30k share. There wouldn't be any money exchanged from A to B. B would gift the asset.

This scenario can still be classed as deprivation of capital which covers people giving away their assets in order to become entitled to benefts. It's not restricted to the sale of capital to other parties.

Deprivation of capital is about intentionally doing this. It's quite a complex area.