Upper Tribunal Administrative Appeals Chamber

[2024] UKUT 222 (AAC)

Fecha: 17-Jun-2024

The Housing Benefit Regulations 2006 (“the 2006 regulations”)

The Housing Benefit Regulations 2006 (“the 2006 regulations”)

29.

Capital is dealt with in Section 6 of the 2006 regulations. Relevant regulations within Section 6 include:

“43.
— Capital limit
For the purpose of section 134(1) of the Act as it applies to housing benefit (no entitlement to benefit it capital exceeds prescribed amount), the prescribed amount is £16,000.
44.
– Calculation of capital

(1)

For the purpose of Part 7 of the Act (income-related benefits) as it applies to housing benefit, the capital of a claimant to be taken into account shall, subject to paragraph (2), be the whole of his capital calculated in accordance with this part and any income treated as capital under regulation 46 (income treated as capital).

(2)

There shall be disregarded from the calculation of a claimant’s capital under paragraph (1), any capital, where applicable, specified in Schedule 6.

47.

– Calculation of capital in the United Kingdom

Capital which a claimant possesses in the United Kingdom shall be calculated at its current market or surrender value less-

(a)

Where there would be any expenses attributable to the sale, 10 per cent; and

(b)

The amount of any encumbrance secured on it.

49.

– Notional capital

(1)

A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to housing benefit or increasing the amount of that benefit except to the extent that that capital is reduced in accordance with regulation 50 (diminishing notional capital rule).

….

(5)

Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he may be treated as if he were such sole owner or partner and in such a case—

(a)

the value of his holding in that company shall, notwithstanding regulation 44 (calculation of capital) be disregarded; and

(b)

he shall, subject to paragraph (6), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Section shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.

(6)

For so long as the claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (5) shall be disregarded.”

30.

In paragraph 29 of its written submissions to the First-tier Tribunal, Barnet also referred to notional income under regulation 42(9), but as a ground where it reserved the right to make a decision about ZA’s entitlement if the tribunal decided that regulation 49(5) applied to her. Regulation 42(9) provides:

“42.

– Notional income