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<p>Tax Credit claimants will have any capital they hold above £16,000 disregard for
up to 12 months once moved to Universal Credit as part of the managed migration process.
This means that the normal rules for the treatment of capital, that would usually
prevent them claiming UC, will not be applied during this period.</p><p> </p><p>Normal
UC rules for capital will still be applied to the capital they hold between £6,001
and £16,000. If their capital falls to £16,000 or below during the 12 months, then
the disregard is not re-applied, should their capital rise above £16,000 again.</p><p>
</p><p>After 12 months, the disregard on tax credit claimants’ income that permits
them to claim UC if their capital exceeds £16,000 will cease to apply and, like all
claimants with capital over £16,000, they will not be entitled to Universal Credit.</p>
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