This seems possibly generous on the part of HMRC so I am suspicious of such generosity.
My client is approaching 65 and has custody of two grandchildren. His partner works. He is on old style incapacity benefit which doesn't count as income for Tax Credits, but his SRP will do. They would not qualify for Pension Credits anyway.
There may not actually be any financial advantage to him if he does defer his SRP, in that the gain from Tax Credits will no way near compensate for no SRP, but the Tax Credits regs say that if you defer your SRP (Category A or B)it does not count as notional income.
Is this correct? As I say I find it suspect............
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