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Managed Migration -Disregarded capital
Just checking my understanding/checking other’s experiences.
Cl is getting HB, ESA ( dont know whether it is IR only or both) and CTC. They are going to inherit capital well over the upper limit.
If they are managed migrated to UC after they receive the capital (and IR ESA and HB stop) am I correct in thinking that the capital would then be ignored for UC for twelve APs.
Reg 51 of the UC(TP) Regs just says that the claimant has to be getting tax credits on the day of managed migration for the disregard to apply and I read that as being any award of Tax Credits and regardless of what other benefits are in payment - is that correct?
The transitional capital disregard would apply if they come into the capital prior to migration. Their irESA and HB would stop and they would just migrate as an ordinary tax credits only case.
The disregard applies in any tax credits case, regardless of whether or not other legacy benefits being received. However, in theory, anyone with enough capital for this to be an issue shouldn’t be getting any other legacy benefits anyway, so it should not be a factor - perhaps excepting obscure cases where the capital can be disregarded for legacy but not UC.