How we work out capital assets
If the value of property or other assets (for example National Savings Certificates) can’t be ignored, we will value them at current market value, less any outstanding mortgage or debts secured on them.
Overseas assets
If your customer holds property or other assets outside the UK:
- the asset will be valued at its sale (or surrender) value in the country of origin if there is no law to stop them transferring money from there to this country,
- the value of the property will be the sale value in the UK if your customer is not allowed to transfer money from the country of origin to the UK.
In both cases:
- we will ignore 10% of the asset’s current market value if there are any costs involved in the sale (for example, estate agents’ or stockbrokers’ fees)
- if the asset is held in a currency other than sterling, we will allow a deduction for any banking charge or commission payable to convert the currency to sterling,
- we will deduct any outstanding debts or mortgages secured on the assets.
Jointly-owned property
If your customer owns property jointly with someone else (other than their partner) and its value can’t be ignored, we will value their share of the property.
For example, if your customer:
- has a half-share in a holiday cottage and their brother and sister-in-law own the other half, we will value their half-share,
- owns the cottage with their brother and sister-in-law as ‘joint tenants’ – or ‘joint owners’ in Scotland – we would value their portion as one-third.
These valuations are done by specialist valuers. It is not just a case of dividing the total value of the property, because the value of, say, a half-share in a house is likely to be less than half the value of the whole house.
Deemed income from capital
If your customer’s capital is over £10,000, they are deemed to have an income of £1 a week for each £500 or part of £500 over that amount [Reference 5f].
For example, if your customer and their partner have capital of over £10,000 but no more than £10,500, they will be deemed to have an income of £1 a week. See Deemed income from capital table below.
Deemed income from capital
| Capital held by your customer and their partner (in £s) | Deemed income (weekly in £s) |
|---|---|
|
10,000.01 - 10,500.00 |
1 |
|
10,500.01 - 11,000.00 |
2 |
|
11,000.01 - 11,500.00 |
3 |
|
11,500.01 - 12,000.00 |
4 |
|
12,000.01 - 12,500.00 |
5 |
|
12,500.01 - 13,000.00 |
6 |
|
13,000.01 - 13,500.00 |
7 |
|
13,500.01 - 14,000.00 |
8 |
|
14,000.01 - 14,500.00 |
9 |
|
14,500.01 - 15,000.00 |
10 |
|
15,000.01 - 15,500.00 |
11 |
|
15,500.01 - 16,000.00 |
12 |
|
16,000.01 - 16,500.00 |
13 |
|
16,500.01 - 17,000.00 |
14 |
|
17,000.01 - 17,500.00 |
15 |
|
17,500.01 - 18,000.00 |
16 |
|
18,000.01 - 18,500.00 |
17 |
|
18,500.01 - 19,000.00 |
18 |
|
19,000.01 - 19,500.00 |
19 |
|
19,500.01 - 20,000.00 |
20 |
|
20,000.01 - 20,500.00 |
21 |
|
20,500.01 - 21,000.00 |
22 |
|
21,000.01 - 21,500.00 |
23 |
|
21,500.01 - 22,000.00 |
24 |
|
22,000,01 - 22,500.00 |
25 |
|
22,500.01 - 23,000.00 |
26 |
|
23,000.01 - 23,500.00 |
27 |
|
23,500.01 - 24,000.00 |
28 |
|
24,000.01 - 25,000.00 |
29 |
|
25,000.01 - 25,500.00 |
30 |
