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Capital

What is Capital?

For Housing Benefit and Council Tax Benefit purposes, capital means any savings and investments held by you or your partner, if you have one.

This means everything held in all types of current account, any other bank accounts, supermarket saving accounts, Internet bank accounts, Building Society accounts, Post Office Accounts, ISA's, TESSA's or PEPS, National Saving Certificates, Premium Bonds and stocks and shares, redundancy pay and Tax refunds.  It can also include value of any land or property owned, or partly owned, by yourself or your partner.

Why do you need to know about my capital?

Your capital can affect any Housing or Council Tax Benefit you may get.  A person who has more than £16,000 of capital will not usually qualify for Housing or Council Tax Benefit, except those in receipt of Pension Credit Guarantee. (There is no capital limit for people in receipt of Pension Credit Guarantee.)

Any capital under £6,000 is ignored completely when we are working out the amount of benefit you will get, but we still need to know about it.

What if I have capital between £3,000 and £16,000?

Anyone who has capital between £6,000 and £16,000 may be entitled to Housing Benefit or Council Tax Benefit. When working out your benefit entitlement, we will add £1 per week to your income for every £250, or part of, that you have over £3,0000. This is called tariff income.

Anyone aged over 60 who has capital between £6,000 and £16,000 may be entitled to Housing Benefit or Council Tax Benefit. When working out your benefit entitlement, we will add £1 per week to your income for every £500, or part of, that you have over £6,000. This is called tariff income.

What if I'm on Income Support or Job Seekers Allowance (Income Based)?

If you are receiving Income Support or Job Seekers Allowance (Income Based), the Department for Work and Pensions will have already taken any capital you or your partner have into account. So when we are working out your Housing or Council Tax Benefit, any capital you have will not be taken into account again.

Is there any type of capital that we do not take into account?

Yes, we don't take into account the items listed below when we are working out how much Housing or Council Tax Benefit you may get.

• The home you own and live in
• A self employed persons business assets
• Arrears of certain state benefits
• Certain compensation payments
• A life insurance policy which has not been cashed in

Other capital may also be disregarded for limited periods of time, for example money from the sale of your former home that is intended to be used to buy another home.  Please ask for more information about this and other disregards.

What proof do I need to send to the Benefit Section?

When you are applying for Housing or Council Tax Benefit, you will need to send proof of all the capital you and your partner have. Below is an example list of the proof you will need to provide before we will be able to work out how much benefit you may get. (Important: all the documents you provide must be originals. Copies will not be accepted) Please note that this list is only examples and does not cover all types of capital, for further help or guidance contact the Benefit Section.

• If you have any sort of Bank Accounts (including current accounts), Building Society Accounts, Post Office Accounts, or any other sort of savings account you will need to provide a statement for the last 2 months showing debits, credits and a balance. If you cannot provide your statements, you will need to provide a letter from the organisation that holds the account showing the type of account, account number the balance and transactions for the last 2 months
• If you have any savings bonds, unit trusts, stocks and shares, National Savings or Premium Bonds you will need to provide your statement or certificate
• If you or your partner own or partly own any land or property other than the home you live in, you will need to provide full details of the address, area it is located, what it is used for and a approximate valuation (you will be sent a form to complete for this).