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Capital Limit for Income Related Benefits

Please could someone clarify the difference between income and capital in the following situation?
If you were just below the £6k limit in your accounts as capital and claiming IR benefits but then received a 4 weekly payment that took your balance over the £6k limit would you need to declare that immediately?
Does the income become capital immediately or on receipt of the following payment of the same benefit?
I am aware of deprivation of capital rules but if the income does not become capital for a further four weeks are there restrictions on how this income can be spent before it becomes capital?

Comments

  • Please could someone clarify the difference between income and capital in the following situation?
    If you were just below the £6k limit in your accounts as capital and claiming IR benefits but then received a 4 weekly payment that took your balance over the £6k limit would you need to declare that immediately?
    Does the income become capital immediately or on receipt of the following payment of the same benefit?
    I am aware of deprivation of capital rules but if the income does not become capital for a further four weeks are there restrictions on how this income can be spent before it becomes capital?

    No.  None at all, as far as the means-tested benefit is concerned.

    The definition of when income becomes capital depends on which means-tested benefit(s) you're referring to.
  • Generally any unspent benefit income is included as capital at the end of the assessment / payment period.


    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1163111/admh1.pdf

    H1050
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
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