Any comments on the following would be very welcome:

I have a client who has recently returned to NI after living in England for a number of years.He applied for Pension Credit last year and was awarded G/C and S/C and an AIP from 07/11/05 - 18/06/09.
On moving home he submitted a new claim. In the meantime he had sold his property in England and is now privately renting in the hope of buying a new home. Proceeds from the house were £48000. Pension Service now say AIP does not apply and the capital is being taken into account in the calculation. Whilst I can understand that if his application is treated as a fresh claim then he would be liable to have the capital taken into account, however as there was no break in his entitlement and had he remained in England the AIP would have stood even on selling the house. I would appreciate it if anyone could offer any clarification on this scenario.

I would approach this by asking two questions,

Should the AIP have been awarded in the first place? reg 10(1) SPC regs

If none of the changes of circumstances in reg 12 SPC regs or S9(4) SPC act have occurred then the AIP should remain in place.