Hi,

I have a client who left the UK in 2005 and purchased a property in Spain. In March 2007, she sold this property and rented a property in Spain. She returned to the UK in March 2008.

She has capital of £63000.00 but advised the Pension Service that £50000.00 of that was set aside to purchase a new property. She was was deemed to have habitual residence in June 2008 and the award of PC was awarded a that time. However, they have included the £50000.00 she had set aside, in the calculation, as the 52 week disregard period for this capital had passed.

Does anybody know if there is any case law or legislation in place to show that the 52 week period should have started on her return to the UK, instead of when she actually received the capital? I know that in normal cases the capital is disregarded for 52 weeks from the date it was paid, but with the client being out of the UK for the 52 weeks after she received the capital, i am trying to agrue that she feel under no UK or benefit legislation until her return to the UK. Any help will be appreciated.

SPC Reg 2002
Sch 5
17. Any amount specified in paragraphs 18 to 20 -
(a) in a case where there is an assessed income period, until the end of that period or until the expiration of one year from the date of payment, whichever is the later; or

(b) in any other case, for a period of one year beginning with the date of receipt.

The regulation states beginning with the date of receipt, therefore I would say the date she got the money from the sale of the property not when PC started.

From November 2009, the capital disregard limit will be raised to £10000

Regards

Many thanks

The guidance does go on to say that the 52 week disregard can be extended in certain circumstances. Given that they need to secure a mortgage to pay for the property in addition to the £50000.00 that is set aside, no mortgage lender is going to help them out until my client can show that they have a steady income high enough to be able to repay the mortgage back. I think there are grounds to have the disregard period increased becasue of the length of time it has taken the Pension Service to deal with her claim etc