Advice about pension credit and savings allowance

[MIKEY DABODEE]

When you sell your house you will need to do a change of address with the Pension Service.... On the form it asks if you owned your former property, They will then ask for a redemption statement from your solicitor, to show the sale and purchase of your new property... Also a statement from the bank account to show the balance left being deposited...

You will have bought and sold a property so I dont know if the capital will be disregarded even if you say its for essential repairs, that would be up to a decision maker.

Bit if your claim is closed and you spend the money on improving the property, keep all receipts, invoices etc.

When you make your claim again before its processed a deprivation of capital decision will then be done

 

If you intend to spend the money in the manner you have described I cant see a problem, if they are essential repairs, but it would be up to a DM to determine if they will be classed as essential or non essential

good luck with the move, a stress in itself

[MIKEY DABODEE]

Thank you very much for your reply it is very helpfull . so as I understand it there are no hard and fast rules it will ultimatle work, be be down to a DM to decide wether or not I would be allowed to update and replace kitchen ,carpets etc.[/quote

 

Yes it would, after the sale and purchase of your new property they might if you state the remainder of the capital is to be spent on essential repairs disregard the capital to you have completed the work, but they may decided you have capital www.scottishlife.co.uk/scotlife/Web/Site/Adviser/TechnicalCentralArea/Rates&FactorsArea/PensionCreditArea/PensionCreditHomePage.asp

 

This may then close your claim. You will then complete the work and spend the capital doing the work

 

You can make a claim as soon as you qualify again, ie you have spent the money

but a deprivation of capital decision will be done,

 

if the spending of the capital is classed as non deprivation, in other words you needed to spend it to make the new home habitable, or esential reapairs, etc, its hard to define

then a decision will be made and your new claim paid.

 

But if is deemed you have spent the money to gain entiltlement to benefit then notional capital will be assumed.

 

Say for esample you spend 10k on a hand made Italian leather designer suite, then the DM would say even though you had spend that money, you had a choice you didnt have too, so then capital 0f 10k would be assumed on your claim. Case controls are then put on your claim and every three month or so it goes down in batches of £250. So three months later £9750 would be assumed and so forth till its gone, may take a few years. This means that they would treat you as having 10k for example when you hadnt really because you had spent it on the suite.....

 

So you can reapply as soon as you have spent your capital.

 

Just keep your receipts etc for everything ready for the decision

Edited February 5, 2012 by MIKEY DABODEE

[MIKEY DABODEE]

I have never heard of that rule. after the sale of your house and you have your surplus, if you paid off your credit card, then the DM would look at it when making the deprivation decision.

I cant say they will go with non deprivation on this but I have seen lots of decisions where they have treated repayments of credit cards as non deprivation of capital, in other words allowed it