Capital Advice needed

Hi looking for advice if someone can help.

I have a client who mistakenly for the past 3 years had been paying Council tax for her new and previous home.  This has only just been noticed and she has received a refund of £11k.  However, Council tax are now treating this as Capital and a tarrif income has been applied. 

Is there any way this can be appealled.  Unable to find anythin gto use to appeal the decision

Hi

There is no provision to disregard this payment within Council Tax Benefit - I cannot think of anyway that it can be disregarded for a fixed period or indefinitely.  If she had saved the periodic payments that she made in error in a bank account then after 3 years the balance in the account would be regarded as capital - in principle I see no difference in this situation so I am of the view that it is capital to be taken fully into account.  Have a look at CIS/515/2006 to see if this is all capital or some is capital and some income.

Shabir