Capital disregard ending

SMB871

Hi All,

Looking for help / hope please! 

My husband wanted a trial separation at the beginning of the year, and so I moved in with my parents (easiest choice with a toddler) and claimed universal credit. He stayed in our house and I pay 50% of the mortgage.

I started claiming universal credit and the house capital was disregarded for 6 months. Well the separation turned into a divorce since May, and we’ve been having to go to mediation whilst putting the house on the market. Although we couldn’t market it until we’d agreed on finances.

The house has now sold for 45k more than it was valued at when the capital was calculated in March. I’m now having to prove capital again as 6 months has passed.

My concern is that they will now not pay me UC because of the house capital, but whilst paying for half the mortgage, child care and living on a part time nurses wage, I will be cutting it incredibly fine each month. 

When I spoke to CAB at the beginning of the year, they said that they are able to extend disregards if effort is being made to progress a sale etc. My work coach seems to think otherwise. 

Any help / advice before I declare capital tomorrow? 

Thanks all 

tboo

SMB871 said:

Hi All,

Looking for help / hope please! 

My husband wanted a trial separation at the beginning of the year, and so I moved in with my parents (easiest choice with a toddler) and claimed universal credit. He stayed in our house and I pay 50% of the mortgage.

I started claiming universal credit and the house capital was disregarded for 6 months. Well the separation turned into a divorce since May, and we’ve been having to go to mediation whilst putting the house on the market. Although we couldn’t market it until we’d agreed on finances.

The house has now sold for 45k more than it was valued at when the capital was calculated in March. I’m now having to prove capital again as 6 months has passed.

My concern is that they will now not pay me UC because of the house capital, but whilst paying for half the mortgage, child care and living on a part time nurses wage, I will be cutting it incredibly fine each month. 

When I spoke to CAB at the beginning of the year, they said that they are able to extend disregards if effort is being made to progress a sale etc. My work coach seems to think otherwise. 

Any help / advice before I declare capital tomorrow? 

Thanks all 

Disregards are for if the house is on the market and maybe extended

It appears from above the house has now sold, if correct then your capital from the sale needs to be declared.

If more than £16k then no UC. Unless you intend to use it for another property

The upper limit is £16000, so anyone with savings (capital) over £16,000 cannot get Universal Credit.

https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/

Capital disregarded for up to 6 months H2110 - H2999

H2110 In the disregards described below that specify a period of 6 months, that period may be extended where it is reasonable in the circumstances of the case1.

-1 UC Regs, reg 48(2)

Premises intended to be occupied
H2111 Premises that a person intends to occupy as their home shall be disregarded in calculating that person’s capital where the person
1. has acquired the premises within the last 6 months but has not yet taken up occupation or
2. is taking steps to obtain possession and they began those steps within the past 6 months or
3. is carrying out essential repairs or alterations in order to make the premises fit for occupation and these have been commenced within the last 6 months1.

1 UC Regs, Sch 10, para 4(1)

H2112 A person is taken to have commenced steps to obtain possession of premises as in H2111 2. above, on the date that legal advice is first sought or proceedings are commenced, whichever is the earlier1.
1 UC Regs, Sch 10, para 4(2)
Is it reasonable to disregard for longer
H2113 The DM may decide
1. to disregard the premises for a longer period if for example
1.1 legal proceeding are still being taken or
1.2 people have got possession and there is a good reason why they have not started to live in the premises
1.3 repairs will take longer than 6 months
2. not to disregard the premises for a longer period if people have for example
2.1 asked for legal advice and not followed it or

2.2 got possession and there is no good reason why they have not moved into the premises.

Premises ceased to be occupied
H2114 Where a person has ceased to occupy premises as their home following estrangement from their former partner, those premises can be disregarded from the calculation of that person’s capital where
1. the person has ceased to occupy those premises within the past 6 months or
2. the person’s former partner is a lone parent and occupies the premises as their home1.
Note: The disregard in 2 applies for as long as the conditions are satisfied and is not restricted to 6 months.

1 UC Regs, Sch 10, para 5

Premises person is trying to sell
H2115 Where a person is trying to dispose of premises, they can be disregarded from the calculation of that person’s capital where they are taking reasonable steps to dispose of the premises and those steps have been commenced within the last 6 months1.
1 UC Regs, Sch 10, para 6
Is it reasonable to disregard for longer
H2116 The DM may decide to disregard the premises for a longer period where for example the person
has done all they can to sell the premises and the asking price is no more than the premises are worth.

H2119 Where a person has received an amount within the past 6 months which is to be used to purchase premises that the person intend to occupy as their home, that amount can be disregarded from the calculation of that person’s capital where it
1. is attributable to the proceeds of the sale of premises formerly occupied as their home or
2. has been deposited with a housing association (see H2045) or
3. is a grant made to the person for the sole purpose of purchasing a home1.
1 UC Regs, Sch 10, para 13
Is it reasonable to disregard for longer
H2120 The DM may decide it is reasonable to disregard the amount for a longer period if, for example
1. people have tried but not found premises which are suitable for their or a member of their family's needs (in particular, if one of them is disabled and needs a certain type of accommodation)
2. the person has found premises and the
2.1 sale has not been completed or
2.2 seller later decides not to sell.

SMB871

tboo said:

SMB871 said:

Hi All,

Looking for help / hope please! 

My husband wanted a trial separation at the beginning of the year, and so I moved in with my parents (easiest choice with a toddler) and claimed universal credit. He stayed in our house and I pay 50% of the mortgage.

I started claiming universal credit and the house capital was disregarded for 6 months. Well the separation turned into a divorce since May, and we’ve been having to go to mediation whilst putting the house on the market. Although we couldn’t market it until we’d agreed on finances.

The house has now sold for 45k more than it was valued at when the capital was calculated in March. I’m now having to prove capital again as 6 months has passed.

My concern is that they will now not pay me UC because of the house capital, but whilst paying for half the mortgage, child care and living on a part time nurses wage, I will be cutting it incredibly fine each month. 

When I spoke to CAB at the beginning of the year, they said that they are able to extend disregards if effort is being made to progress a sale etc. My work coach seems to think otherwise. 

Any help / advice before I declare capital tomorrow? 

Thanks all 

Disregards are for if the house is on the market and maybe extended

It appears from above the house has now sold, if correct then your capital from the sale needs to be declared.

If more than £16k then no UC. Unless you intend to use it for another property

The upper limit is £16000, so anyone with savings (capital) over £16,000 cannot get Universal Credit.

https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/

Capital disregarded for up to 6 months H2110 - H2999

H2110 In the disregards described below that specify a period of 6 months, that period may be extended where it is reasonable in the circumstances of the case1.

-1 UC Regs, reg 48(2)

Premises intended to be occupied
H2111 Premises that a person intends to occupy as their home shall be disregarded in calculating that person’s capital where the person
1. has acquired the premises within the last 6 months but has not yet taken up occupation or
2. is taking steps to obtain possession and they began those steps within the past 6 months or
3. is carrying out essential repairs or alterations in order to make the premises fit for occupation and these have been commenced within the last 6 months1.

1 UC Regs, Sch 10, para 4(1)

H2112 A person is taken to have commenced steps to obtain possession of premises as in H2111 2. above, on the date that legal advice is first sought or proceedings are commenced, whichever is the earlier1.
1 UC Regs, Sch 10, para 4(2)
Is it reasonable to disregard for longer
H2113 The DM may decide
1. to disregard the premises for a longer period if for example
1.1 legal proceeding are still being taken or
1.2 people have got possession and there is a good reason why they have not started to live in the premises
1.3 repairs will take longer than 6 months
2. not to disregard the premises for a longer period if people have for example
2.1 asked for legal advice and not followed it or

2.2 got possession and there is no good reason why they have not moved into the premises.

Premises ceased to be occupied
H2114 Where a person has ceased to occupy premises as their home following estrangement from their former partner, those premises can be disregarded from the calculation of that person’s capital where
1. the person has ceased to occupy those premises within the past 6 months or
2. the person’s former partner is a lone parent and occupies the premises as their home1.
Note: The disregard in 2 applies for as long as the conditions are satisfied and is not restricted to 6 months.

1 UC Regs, Sch 10, para 5

Premises person is trying to sell
H2115 Where a person is trying to dispose of premises, they can be disregarded from the calculation of that person’s capital where they are taking reasonable steps to dispose of the premises and those steps have been commenced within the last 6 months1.
1 UC Regs, Sch 10, para 6
Is it reasonable to disregard for longer
H2116 The DM may decide to disregard the premises for a longer period where for example the person
has done all they can to sell the premises and the asking price is no more than the premises are worth.

H2119 Where a person has received an amount within the past 6 months which is to be used to purchase premises that the person intend to occupy as their home, that amount can be disregarded from the calculation of that person’s capital where it
1. is attributable to the proceeds of the sale of premises formerly occupied as their home or
2. has been deposited with a housing association (see H2045) or
3. is a grant made to the person for the sole purpose of purchasing a home1.
1 UC Regs, Sch 10, para 13
Is it reasonable to disregard for longer
H2120 The DM may decide it is reasonable to disregard the amount for a longer period if, for example
1. people have tried but not found premises which are suitable for their or a member of their family's needs (in particular, if one of them is disabled and needs a certain type of accommodation)
2. the person has found premises and the
2.1 sale has not been completed or
2.2 seller later decides not to sell.

Thank you for the comment! I’m not sure I understand all of the information, but I’ll read through again and check.

I haven’t lived in the property for 6 months, and I fully intend to use the money for another property. The house only sold last week, so not close to getting money yet. 

Alice_Holt

SMB871 said:

tboo said:

SMB871 said:

Hi All,

Looking for help / hope please! 

My husband wanted a trial separation at the beginning of the year, and so I moved in with my parents (easiest choice with a toddler) and claimed universal credit. He stayed in our house and I pay 50% of the mortgage.

I started claiming universal credit and the house capital was disregarded for 6 months. Well the separation turned into a divorce since May, and we’ve been having to go to mediation whilst putting the house on the market. Although we couldn’t market it until we’d agreed on finances.

The house has now sold for 45k more than it was valued at when the capital was calculated in March. I’m now having to prove capital again as 6 months has passed.

My concern is that they will now not pay me UC because of the house capital, but whilst paying for half the mortgage, child care and living on a part time nurses wage, I will be cutting it incredibly fine each month. 

When I spoke to CAB at the beginning of the year, they said that they are able to extend disregards if effort is being made to progress a sale etc. My work coach seems to think otherwise. 

Any help / advice before I declare capital tomorrow? 

Thanks all 

Disregards are for if the house is on the market and maybe extended

It appears from above the house has now sold, if correct then your capital from the sale needs to be declared.

If more than £16k then no UC. Unless you intend to use it for another property

The upper limit is £16000, so anyone with savings (capital) over £16,000 cannot get Universal Credit.

https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/capital-rules/

Capital disregarded for up to 6 months H2110 - H2999

H2110 In the disregards described below that specify a period of 6 months, that period may be extended where it is reasonable in the circumstances of the case1.

-1 UC Regs, reg 48(2)

Premises intended to be occupied
H2111 Premises that a person intends to occupy as their home shall be disregarded in calculating that person’s capital where the person
1. has acquired the premises within the last 6 months but has not yet taken up occupation or
2. is taking steps to obtain possession and they began those steps within the past 6 months or
3. is carrying out essential repairs or alterations in order to make the premises fit for occupation and these have been commenced within the last 6 months1.

1 UC Regs, Sch 10, para 4(1)

H2112 A person is taken to have commenced steps to obtain possession of premises as in H2111 2. above, on the date that legal advice is first sought or proceedings are commenced, whichever is the earlier1.
1 UC Regs, Sch 10, para 4(2)
Is it reasonable to disregard for longer
H2113 The DM may decide
1. to disregard the premises for a longer period if for example
1.1 legal proceeding are still being taken or
1.2 people have got possession and there is a good reason why they have not started to live in the premises
1.3 repairs will take longer than 6 months
2. not to disregard the premises for a longer period if people have for example
2.1 asked for legal advice and not followed it or

2.2 got possession and there is no good reason why they have not moved into the premises.

Premises ceased to be occupied
H2114 Where a person has ceased to occupy premises as their home following estrangement from their former partner, those premises can be disregarded from the calculation of that person’s capital where
1. the person has ceased to occupy those premises within the past 6 months or
2. the person’s former partner is a lone parent and occupies the premises as their home1.
Note: The disregard in 2 applies for as long as the conditions are satisfied and is not restricted to 6 months.

1 UC Regs, Sch 10, para 5

Premises person is trying to sell
H2115 Where a person is trying to dispose of premises, they can be disregarded from the calculation of that person’s capital where they are taking reasonable steps to dispose of the premises and those steps have been commenced within the last 6 months1.
1 UC Regs, Sch 10, para 6
Is it reasonable to disregard for longer
H2116 The DM may decide to disregard the premises for a longer period where for example the person
has done all they can to sell the premises and the asking price is no more than the premises are worth.

H2119 Where a person has received an amount within the past 6 months which is to be used to purchase premises that the person intend to occupy as their home, that amount can be disregarded from the calculation of that person’s capital where it
1. is attributable to the proceeds of the sale of premises formerly occupied as their home or
2. has been deposited with a housing association (see H2045) or
3. is a grant made to the person for the sole purpose of purchasing a home1.
1 UC Regs, Sch 10, para 13
Is it reasonable to disregard for longer
H2120 The DM may decide it is reasonable to disregard the amount for a longer period if, for example
1. people have tried but not found premises which are suitable for their or a member of their family's needs (in particular, if one of them is disabled and needs a certain type of accommodation)
2. the person has found premises and the
2.1 sale has not been completed or
2.2 seller later decides not to sell.

Thank you for the comment! I’m not sure I understand all of the information, but I’ll read through again and check.

I haven’t lived in the property for 6 months, and I fully intend to use the money for another property. The house only sold last week, so not close to getting money yet. 

       When you receive the sale proceeds in your bank,  then (on the assumption that you will use it to buy another property) - this applies from tboo's post:

"H2119

  Where a person has received an amount within the past 6 months which is to be used to purchase premises that the person intend to occupy as their home, that amount can be disregarded from the calculation of that person’s capital where it
1. is attributable to the proceeds of the sale of premises formerly occupied as their home,,," 


  Be very, very wary of any info like this which your work coach may tell you.

  The capital sum should be disregarded.
 DWP work coaches seem to be very poorly trained - this decision needs to be made by a DWP decision maker. And you have rights to appeal if the decision maker also gets it wrong. 
 Citizens Advice is a good place to double check any such info.
     

RobinHill

I went through a similar experience and found that funds from the sale of the family home are disregarded for a set period (I think six months) to allow for the purchase of a new home. There are conditions eg. "actively selling / sold / looking" etc. At the discretion of the DM this can be extended further. However make sure that it is made unequivocally clear that the funds are from the sale of the family home.

calcotti

RobinHill said:

I went through a similar experience and found that funds from the sale of the family home are disregarded for a set period (I think six months) to allow for the purchase of a new home. There are conditions eg. "actively selling / sold / looking" etc. At the discretion of the DM this can be extended further. However make sure that it is made unequivocally clear that the funds are from the sale of the family home.

As referenced in the guidance documents quoted by tboo, paragraphs H2119 and H2120.