Decision Makers Guide - DMG45072

Capital spent on a resource which is not worth as much

If applicant's or partner's have deprived themselves of capital to get tax credits or more tax credits and they have spent their capital on a resource which is not worth as much as the capital spent, the value of the notional capital is the difference between the value of

• the capital spent and

• resource which was bought1

Note this may apply when a person has spent capital on personal possessions to get tax credits or more tax credits because personal possessions are not normally worth as much as the person paid for them.