Housing Benefit (HB) and Council Tax Reduction (CTR) are 'means tested' benefits, so your income and savings will affect how much you get. If you (or your partner) have savings of over £16,000 you will not be eligible for either of these benefits.
Capital means any savings, investments or property owned by you and your partner (if you have one).
The rules allow for certain types of capital to be disregarded. For example, if you own another property where a relative is living and that relative is aged 60 or over and is incapacitated, the value of that property is disregarded when assessing capital and savings.
We still need to know about the capital and savings that might be disregarded so please make sure you tell us about them if you claim.
Where we believe that you or your partner has deliberately reduced your capital or savings to qualify for HB or CTR, we will still include this amount in our assessment of your HB or CTR. We must take into account the reasons why the money was spent.
If you are aged 60 or over we will never apply notional capital rules if the money has been spent on reducing debt or purchasing goods or services that are reasonable given your circumstances. For example, if you are aged 65 or over and bought a new washing machine to replace and old one this would not be used as notional capital.
Capital and savings are treated differently depending on whether you are under or over 60.
Updated: 17 November 2017