Decision Makers Guide - DMG45058

Conversion of capital to personal possessions

To get tax credits or more tax credits an applicant or partner may convert capital which would be taken into account to personal possessions. Where this applies the decision maker should
1) take the current market value of those possessions into account as an actual resource and
2) if a applicant converts a resource into another actual resource of lesser value treat the applicant as notionally possessing the difference between the value of

• the new resource and

• the one it replaces2.

For example if the value of the personal possessions acquired in the first bullet point above is less than the sum spent on them, the decision maker should treat the difference as a notional resource.