If, to get tax credits applicant's have deprived themselves of
capital which was jointly owned the decision maker should
1) regard the applicant's as having the same amount of
notional capital as the actual capital they have deprived
themselves of, subject to the rules of diminution (DMG45020)
2) ignore the amount of the jointly owned capital the
applicant would previously have been treated as having under
DMG41012
Example 1
The applicant holds a joint bank account totalling £38,000 with one other person. An application is refused because he is treated as possessing £19,000. The applicant arranges for the joint account to be closed and invests the £3,000, which represents his beneficial interest, in a separate account in his own name. He makes a further claim for tax credit which is successful because his capital of £3,000 does not exceed the prescribed limit and the decision maker cannot treat him as depriving himself of capital.
Example 2
A piece of land worth £20,000 is owned 75% by the applicant and 25% by her brother. The applicant gives her share of the land to her parents to get benefit. When she makes her claim he is treated as having notional capital of £15,000 because that is the actual capital she has deprived herself of.
