Disregarding capital from Insurance payout

gtanvir

Hi

I received an amount of £7.5k due to my car being totaled. As far as I understand this money is to be disregarded as capital at least for six months. 

How do I report it? I have already £9k+ capital. Should I report the total and tell them what to disregard? 

Or I should just report £9k? 

Thanks

marcia_

gtanvir said:

Hi

I received an amount of £7.5k due to my car being totaled. As far as I understand this money is to be disregarded as capital at least for six months. 

How do I report it? I have already £9k+ capital. Should I report the total and tell them what to disregard? 

Or I should just report £9k? 

Thanks

 Is this for personal injury or the car? 

huckster

You report the total and then ask for disregard to be applied.

gtanvir

Its the car.

It says in the guidance, 

"An amount received from an insurance policy within 

the past 6 months can be disregarded where it is in 

connection with the loss or damage to the: 

• premises occupied by a person as their home

• personal possessions of that person

it is reasonable to disregard the money for a longer 

period if for example the:

• repairs will take more than 6 months 

• replacement of personal possessions will take 

more than 6 months"

Grumpy_chap

The car is "personal possessions of that person".
I'd assume you will replace the car in less than 6 months so extending the disregard won't apply.