Giving savings to family member to claim unemployment allowance/tax credits?

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tomocat3
tomocat3 Posts: 12 Forumite
in Benefits & tax credits
I know there is a threshold of savings above which would reduce/block your claim to unemployment allowance/tax credits. Are there any rules which prevent you from transferring your savings to a trusted family member to hold in their bank account?

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  • kingfisherblue
    kingfisherblue Posts: 9,203 Forumite
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    tomocat3 wrote: »
    I know there is a threshold of savings above which would reduce/block your claim to unemployment allowance/tax credits. Are there any rules which prevent you from transferring your savings to a trusted family member to hold in their bank account?



    If you transfer funds to another family member in order to calim benefits, it is Deprivation of Capital. So yes, there are rules to prevent this. You will be treated as though you still have the money.
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    Are you happy to commit fraud?

    https://www.gov.uk/benefit-fraud
    You commit benefit fraud by claiming benefits you!!!8217;re not entitled to on purpose. For example by:
    not reporting a change in your circumstances
    providing false information
  • marliepanda
    marliepanda Posts: 7,186 Forumite
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    tomocat3 wrote: »
    I know there is a threshold of savings above which would reduce/block your claim to unemployment allowance/tax credits. Are there any rules which prevent you from transferring your savings to a trusted family member to hold in their bank account?

    Do you really think you're the first person to come up with this genius idea?
  • antrobus
    antrobus Posts: 17,386 Forumite
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    tomocat3 wrote: »
    I know there is a threshold of savings above which would reduce/block your claim to unemployment allowance/tax credits. Are there any rules which prevent you from transferring your savings to a trusted family member to hold in their bank account?

    Yes.

    Fraud Act 2006
    https://www.legislation.gov.uk/ukpga/2006/35/contents

    :)
  • TELLIT01
    TELLIT01 Posts: 16,479 Forumite
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    tomocat3 wrote: »
    I know there is a threshold of savings above which would reduce/block your claim to unemployment allowance/tax credits. Are there any rules which prevent you from transferring your savings to a trusted family member to hold in their bank account?


    Yes. It is against the rules to reduce your savings in order to claim Income Related benefits. It's called Deprivation of Capital. If it is moved in the way described it's actually more likely to be considered to be fraud as it has been thought out in advance.
  • soolin
    soolin Posts: 72,199 Ambassador
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    tomocat3 wrote: »
    I know there is a threshold of savings above which would reduce/block your claim to unemployment allowance/tax credits. Are there any rules which prevent you from transferring your savings to a trusted family member to hold in their bank account?

    I always worry when someone feels the need to ask whether fraud is a good idea .
    I’m a Forum Ambassador and I support the Forum Team on the eBay, Auctions, Car Boot & Jumble Sales, Boost Your Income, Praise, Vents & Warnings, Overseas Holidays & Travel Planning , UK Holidays, Days Out & Entertainments boards. If you need any help on these boards, do let me know.. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.All views are my own and not the official line of MoneySavingExpert.
  • Afraid_of_Kittens
    Afraid_of_Kittens Posts: 342 Forumite
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    Data matching will eventually pick up the decrease in savings. Might be next week or next month or a few years time. But it will be discovered.

    This is an article on HMRCs Data Matching https://www.telegraph.co.uk/finance/personalfinance/tax/11697816/What-does-the-taxman-know-about-you-your-finances-and-your-lifestyle.html

    DWP and HMRC share information. Google for articles on Data matching and the people caught hiding or disposing of savings.
    I enjoy flower arranging, kittens, devil worship, the study of serial killers and their methods and road kill jigsaws.
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