PC10 Pension Credit - Communities and Local Government

How do we work out your income?etc. – and from whatever source – savings, inheritance, redundancypayments, lump-sum grants etc. It also includes the net market valueof land and property.SPCA s5SPCR 21 & 22If you have a partner, the capital held by both of you will usually beadded together and treated in the same way as the capital held by asingle person. See page 82 for situations where partners can betreated separately.The value of some types of capital is disregarded (see pages 36to 40).There is no fixed limit to the amount of capital people can have, butif the net value of your capital is more than £6,000 (or £10,000 ifyou live permanently in a care home) you will be treated as havingan income from it. This is called deemed income and will affect yourPension Credit calculation (see page 44). The actual interest ordividends you get are not used to work out your income.Notional capitalNotional capital is capital you do not actually have but are treatedas having.We may treat you as having notional capital if you have got rid ofcapital to get Pension Credit or to get more Pension Credit – forexample, if you knew you had too much money to get Pension Creditso gave some to your grandchild.But this will not apply if you have used capital to repay or reduce adebt (for example, a mortgage) or you have used it to buy somethingwhich was reasonable in your circumstances (for example, thedecision maker may decide that replacing a car is reasonable, butbuying a Rolls-Royce is probably not).If you are treated as having notional capital, the amount you aretreated as having will be reduced over time. If you are getting somePension Credit, the reduction will be equal to the amount ofadditional Pension Credit you would have been entitled to had you35