Capital

The rules on assessment of capital under universal credit are set out in the Universal Credit Regulations 2013 (SI.No.376/2013).

What is included in capital	Regulation 46 of SI.No.376/2013	Provides for the whole of a person’s capital (apart from personal possessions) to be taken into account unless it is to be treated as income or disregarded.
Jointly owned capital	Regulation 47 of SI.No.376/2013	Provides for people who jointly own capital to be treated as having an equal share unless there is evidence to the contrary.
Disregarded capital	Regulation 48 and Schedule 10 to SI.No.376/2013	Regulation 48 provides for any capital specified in Schedule 10 to be disregarded and gives the Secretary of State the power to extend a six month disregard where that is specified in Schedule 10.
Valuation of capital	Regulation 49 of SI.No.376/2013	Sets out the rules for the valuation of capital.
Notional capital	Regulation 50 of SI.No.376/2013	Provides for a person to be treated as possessing capital where they have deprived themselves of it for the purposes of obtaining universal credit; when that doesn’t apply; and the rules for reducing notional capital over time.
Disregard of compensation for personal injury	Regulation 75 of SI.No.376/2013	Sets out the rules for the disregard of capital payments in compensation for personal injury.
Disregard of compensation from special schemes	Regulation 76 of SI.No.376/2013	Sets out the rules for the disregard of capital payments made through special schemes for compensation (such as for those infected from contaminated blood products).

In Northern Ireland, SR.No.216/2016 makes provisions that are largely equivalent to that in Great Britain.

Further explanation of the legislation is set out in guidance. Please note, however, guidance is not binding and cannot override the legislation.

Advice for decision making	Chapter H1	Provides guidance to decision makers on capital.
Advice for decision making	Chapter H2	Provides guidance to decision makers on capital disregards.
DWP guidance from parliament.uk	Capital disregards	Sets out guidance on what capital disregards are, and rules affecting the period over which different types of capital can be disregarded.
DWP guidance from parliament.uk	Deprivation of capital	Sets out guidance on what deprivation of capital is, notional capital and evidence.
DWP guidance from parliament.uk	Treatment of capital	Sets out guidance on capital, treatment of capital, capital limits and moving to universal credit.

Case law provides further interpretation of the legislation and establishes legal precedent.

Upper Tribunal	[2020] UKUT 247 (AAC)	Capital from a former home can be disregarded if it is ‘more probable than not’ that it will be used for a new home More information: Read the rightsnet summary

Upper Tribunal

Capital from a former home can be disregarded if it is ‘more probable than not’ that it will be used for a new home