The law of equity may establish beneficial ownership (DMG47027 onwards). If capital has not been returned
this may cast doubt on a claim that the legal owner is not also the beneficial owner.
Example 1
At the date of application the applicant declares that she has recently received £1,200 which she says was beneficially owned by her uncle. She intends to purchase a car for herself and to repay her uncle in monthly instalments of £100. The decision maker treats the applicant as beneficially possessing the £1,200. The way the applicant intends to use and repay the money shows that rather than looking after the money on her uncle's behalf, she has received a loan (DMG42024).
Example 2
An applicant's partner holds £8,000 in a bank account in his own name. He can provide evidence to show that the money is being held on behalf of his daughter who is working abroad for 2 years. The intention is that the money will be returned on the daughter's return to the UK after she has completed her work.
The decision maker treats the partner as having no beneficial interest in the £8,000 because he acts as a trustee on behalf of his daughter.
