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How does the CSA calculate payments on savings and property?

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Please could someone clarifiy how the CSA calculates NRP payments on savings and property?


It's been several years since I researched this topic, but my understanding in the past was as follows:


They can only assess savings over £65,000, so if you had £100000 in savings they would be interested in the last £35K. They then assume you are earning a fabulous 8% income from this investment!


Therefore the income figure would be 8% of £35,000 which is £2800, and the payment would be the usual 12% of this amount, as it is with your other income. So the payment would be £336 per year.


Is this an accurate interpretation of their rules please?


It's a bit confusing because on other forums some people seem to think that if you have savings over £65K then the CSA would assess the whole amount, so that would be the full £100K in the above example. I don't see how this could be true because there would be no incentive not to just spend any savings above £65.


Thanks for your feedback

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