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Case Law - undisclosed capital
Situation is as follows, IR ESA claimant has his parther move in with him and notifies ESA that he is now part of a couple. ESA adjust the claim to include the partner.
A couple of months later the new partner tells him she has a capital asset worth over £90,000.00 and has in fact had this asset for many years.
ESA has been told about this and are currently working out the overpayment but I am wondering how far back the overpayment can go- to the date when they became a couple or the date that he found out about the asset?
I would instinctively say the latter as the claimant can’t fail to notify ESA about something he doesn’t know exists but this leaves a question about what information was given when the claim was changed to a ‘couple’ claim. If the question of capital was raised and the partner chose not to tell him about it is is he still liable for the resulting overpayment from that date onwards - in short can he be held responsible for not finding out about his new partner’s capital?
I have some memory of a case that dealt with this point, or at least something very similar but I cant find it anywhere- I thought it was in Sweet and Maxwell in the commentary to reg 71 but it doesn’t seem to be there- can anyone point me in the right direction or have I misremembered it.
I think you’re right Pete. I’m not in the office and won’t be for a couple of days but if no-one has replied by then I shall check my reference materials. I know I repped a client in a similar position a few years ago and I’m certain I found a helpful lookalike case (our appeal succeeded) but can’t for the life of me remember what it was. I have a feeling its an IS decision but may be making that up.
Many Thanks , that looks like the case i remembered