A client has jus t been awarded £18,500 compensation for an accident at work.. It is in an ISA at the moment. He did not take his employer to court to get the compensation - it was mutually agreed. As this is over the capital limit for applying for CTB is there any way that it can be disregarded? If he put it in a trust fund would the income from it be disregarded but the capital limit still be too great?

An initial payment made in consequence of a PI is disregarded for 52 weeks - CTB Regs Sch 5 para 14A. As far as I'm aware if he has anything left at the end of the 52 weeks which would affect his benefits it can always be placed in a trust before the end of period.