How we value your capital
You don't need to get a value for stocks or property and so on yourself, we work it out as follows:
- We value current and deposit bank accounts, building society accounts, giro accounts and savings held in cash at face value.
- We value National Savings Certificates as if you bought them on the last date of issue and using the price on 1st July last before the date of your claim. The Government reviews these values each year.
- We value shares and unit trusts by using the bid price (selling price) on the date of your claim. We take off 10% for sale costs of shares. We don't take the 10% off the value of unit trusts because the bid price takes account of all sale costs and commissions.
- We value government (and other) stocks and bonds by using the daily price figure for each £100 at the date of your claim and take off 10% for sale costs.
- We value Premium Bonds and income bonds at face value.
- We value property and land by asking the Valuation Office Agency for the market valuation (with vacant possession or with a sitting tenant as appropriate). We take off 10% for sale expenses and then take off the amount of any mortgage or other charge against the property.
Capital that is jointly owned but not with your partner is divided equally between each person. For example - a joint building society account with your brother. If there is £12,130 in the account, and £4,300 belongs to you, we must treat you as holding £6,065.
If you spend your capital or give it away we will treat you as still having it if you did it to take advantage of the benefit system. If you use it to pay back a debt, we will consider whether you needed to repay the debt at the time.
If you think we've got it wrong write to us for a full explanation of how we've worked it out.