In 2001, my client invested a sum of £42,000 into a company that bought properties overseas. She tied her capital up until December 2008 and expected a good return on her money.
Unfortunately her circumstances changed and in April 2008 needed to claim housing and council tax benefit.
There is no question about beneficial owner of the capital etc. but the problem is that my client thinks the firm was not legitimate as a sister company has gone into receivership and it had the same owner who squandered all the investors money. She cannot get any proof that she will get her money back or not. She cannot reach the company. It is very likely that all her capital has been lost but she wont know this until December 08.
The Council are treating her as having the capital and therefore she is not entitled to HB/CTB. She is taking it to appeal. Any suggestions to help her?

do a companies house search against the name of the company and if its coming up insolvent/dissolved then her money is gone - even the benefits people must accept that that must be the case!

also, she could contact trading standards who often know about these dodgy companies .

companies house is at:

http://www.companieshouse.co.uk/

click on web link, and type the company name in to the box. search, separately, each database.

Thanks for your prompt and helpful reply. In companies house it has beside the company name "receivership". This is because another company owned partially by the same person is in the process of being dissolved.
Hope this will suffice.

if it is in receivership that generally means it is insolvent, but it depends on what sort of receivership. if it is creditors then insolvent; if it is members, it might or might not be insolvent as well; if it is administrative receivership, it is insolvent.

does that help?

in any event, print everything off and send to benefits section, if necessary you may have to also send the relevant bits of the companies act to the effect that shareholders money is gone on insolvency...

and if they then witter on about intentional deprivation - get it to tribunal asap!