How would this ‘income’ be treated?  Any thoughts

I have had a query from a chap whose assets have been frozen by the CPS but this is being treated as a civil matter as ‘it reverses the burden of proof’.  Can’t say I understand any of this but ...the chap can draw £150.00 per week from his assets which he thinks are in the region of £13k.  Any thoughts on what, if anything,  he can claim and how this income will be treated?  He has been signed off sick by his doctor, has an incomplete NI record and pays about £74.00 per week in rent.  Grateful for any thoughts, I’m completely mystified.

Would appear to be “income other than earnings” and fully taken into account for means-tested benefits.  On that income may be entitled to housing benefit.

Is it income?  It may well be arguable that this is merely a withdrawal of capital, the amounts being limited to £150 (presumably because of an injunction / Court Order?).

See what you think of regs 41 and 46 of the Housing Benefit Regulations 2006 (I’m not up to doing the analysis this afternoon :-) ).

Dear Judithd,

It may be that your client has been convicted of a criminal offence and his assets have been frozen under POCA (Proceeds of Crime Act) proceedings. This is where the civil burden of proof rather than a criminal burden of proof comes into effect.

The client’s assets may be just capital (in which case I would have thought that this counts under the income from capital rules as being “capital”) or it could be business assets or property into which the profits from the criminal enterprise have been funnelled (in which case it is just income from capital).

In respect of the capital sum, whilst he might be considered the “legal owner”, it may be worthwhile arguing that the freezing of the assets by the Court means that there is no beneficial owner - that is what there will be a Court case to determine. Therefore, the value of the capital sum is ignored for benefit purposes.

Without more info, it is difficult to be more precise or definitive. Your client need to tell the whole truth for you to be able to advise them properly.

Good luck

Chris

Thank you all…I got the impresion the Client had not yet been convicted but was distinctly evasive about charges, convictions etc other than to say a solicitor was dealing with that side of it.  Think I need to have another chat with him.