Income From Capital
Income From Capital
If your capital is over £6, 000 (or over £10,000 from November 2009 if you are aged over 60) it is assumed you are receiving income from your capital. This income is known as 'Tariff Income'.
How is 'Tariff Income' calculated?
If you are aged under 60, Tariff Income is calculated as follows:
- the first £6, 000 is ignored
- for every £250 (or part of £250) you have over £6,000 (or £10,000), £1.00 Tariff Income will be added to your weekly income, eg £4,000 capital would mean that we have to add £16.00 to your weekly income
- £7,250 would mean that we have to add £29
- £7,251 would mean that we have to add £30
If you are aged 60 or over, tariff income only starts to apply over £10,000. Then, £1.00 tariff income is added to your income for every £500 of capital.
If your savings (or joint savings if you are a couple) exceed £16,000, you will not be entitled to Housing Benefit or Council Tax Benefit (unless you receive Guaranteed Pension Credit.)
(This calculation is laid down by the Housing Benefit and Council Tax Regulation's and is not at the discretion of the Council.)
