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About this guidance
Format
1.001 Where a paragraph in this guidance is directly linked to a section of the Act or a regulation, the relevant section or regulation is shown immediately following the text of the paragraph. Section refers to a section of the National Assistance Act 1948 except where otherwise stated. Reg refers to a regulation of the National Assistance (Assessment of Resources) Regulations 1992. Schedule refers to a schedule to the National Assistance (Assessment of Resources) Regulations 1992.
Gender
1.002 In all paragraphs the words "he" or "his" should be taken as also referring to "she" or "hers". The male form has been used purely for ease of writing and reading.
General
Statutory basis
1.003 Section 87(3) of the Social Work (Scotland) Act 1968 provides that accommodation provided under the 1968 Act and Section 7 of the Mental Health (Scotland) Act 1984 shall, for charging purposes, be regarded as provided under Part ITT of the National Assistance Act 1948. The charging provisions of the 1948 Act apply, by virtue of Section 65 as amended by the NHS and Community Care Act 1990 to all residential accommodation provided under the 1968 Act, and not just under Part TV, as well as Section 7 of the Mental Health (Scotland) Act 1984.
1.004 Where a person is provided with accommodation under Part ITT of the National Assistance Act, Section 22 of that Act provides for him to be charged for the accommodation.
Section 22(1)
1.005 Section 22 requires the local authority to set a standard charge for the accommodation. If a resident is unable to pay the standard charge, the local authority must assess their ability to pay and decide what lower amount should be charged.
Section 22(3)
Standard rate
1.006 Section 22 requires local authorities to set the standard rate for local authority homes at an amount equivalent to the full cost to the authority of providing the accommodation.
Section 22(2)
1.007 The standard rate for accommodation in homes not managed by the local authority will be the gross cost to the local authority of providing or purchasing the accommodation under a contract with the independent sector home.
Section 26(2)
Arrangements for accommodation
1 .007A Where a local authority are considering whether to make arrangements for residential accommodation under the Social Work (Scotland) Act 1968 or Section 7 of the Mental Health (Scotland) Act 1984, section 12(3 A) of the 1968 Act requires the authority to disregard the person's capital up to the prescribed capital limit (see paragraph 6.003). Where a local authority need too calculate a person's capital for the purposes of section 12(3A) of the 1968 Act, his capital shall be calculated in the same way as if he were a person for whom accommodation is proposed to be provided.
Section 12(3A) and (13B) of the Social Work (Scotland) Act 1968
Assessing ability to pay
Regulations
1.008 Where a resident (ie a person who is provided, or proposed to be provided, with accommodation under Part lII) is unable to pay either the standard rate or the actual cost incurred by the local authority, the authority must assess his ability to pay using regulations made for that purpose. These are The National Assistance (Assessment of Resources) Regulations 1992.
Section 22(5)
Local authority managed home
1.009 In local authority managed homes, the authority must charge the full cost of providing the accommodation the "standard rate". Where the local authority is satisfied that a resident is unable to pay the standard rate, it must assess his or her ability to pay and, on the basis of that assessment, decide the lower amount which should be paid.
Section 22(3)
Independent homes
1.010 A contract made with an independent home must include arrangements for the local authority to pay the home for the accommodation, as well as specifying an amount to be paid. The local authority must then ask the resident to refund that amount to the authority. Where the resident satisfies the local authority that he is unable to make a full refund, the local authority must assess his ability to pay in the same way as a person in a local authority managed home, and decide the lower amount to be refunded. (See 1.015 and 1.016 for collection of charges).
Sections 26(2) and 26(3)
Housing associations registered with a local authority
1.011 In the case of a housing association establishment registered with a social work department, in determining their share of the costs local authorities should have regard to whether the home is in receipt of any Special Needs Allowance Package (SNAP) from Scottish Homes in respect of the resident's place. If so then the local authority's share of the cost should be net of any costs met by SNAP.
Residents with a dependent child
1.012 Local authorities should continue to apply Section 22(7) of the National Assistance Act in terms of Section 87(3) and (4) of the Social Work (Scotland) Act 1968 with regard to an adult accompanied by a child. This provision remains extant in Scotland alone following the coming into force in England and Wales of paragraph 11 of Schedule 13 to the Children Act 1989 which amended Section 21 of the 1948 Act and consequently repealed Section 22(7) of the 1948 Act in its application to England and Wales. Local authorities should therefore consider using the powers in Section 22(4) of the 1948 Act to vary the amount of personal expenses allowance needed by the resident to reflect the needs of the dependent child.
Information to be given to the resident
1.013 The LA must ensure that the resident is given a clear explanation, usually in writing, of how the assessment of his ability to pay has been carried out. This should explain the usual weekly assessed charge. They should also inform the resident of the reasons why the charge may fluctuate, particularly where a new resident's charge may vary in the first few weeks of admission because, for instance, of the effect of benefit paydays on Income Support or the withdrawal of Attendance Allowance or Disability Living Allowance (care component). The resident should, however, be informed of why the charge may fluctuate. There is also no requirement to specify the assessed charge in the contract with the home.
Residents unable to handle their own affairs
1.014 There will be occasions where a resident is unable to provide the local authority with the information needed to assess the charge because they are generally unable to handle their own affairs. In these cases the local authority should find out if anyone has a Power of Attorney or any other dealings with the resident's affairs (eg someone who has been given appointeeship by the Department of Social Security for the purpose of Benefit payments).
Collecting charges from residents in independent homes
Resident to pay the charges direct to the home
1.015 Normally, residents will pay their assessed charge direct to the local authority. However, Section 26(3A) of the National Assistance Act 1948 provides for an exception to this rule for residents placed by local authorities in independent sector homes: where the resident, the local authority, and the organisation or person managing the premises all agree, the resident may pay direct to the home the amount that he or she would otherwise pay to the local authority. This will leave the local authority responsible for paying the home the remainder of the cost. (Section 26(3A) was inserted into the 1948 Act by Section 42(4) of the National Health Service and Community Care Act 1990, which provision extends to Scotland).
Liability for payment to the home
1.016 This exception to the normal rule is an administrative easement which will be particularly useful where the resident and home provider wish to maintain a tenant-landlord relationship, for example where the premises are provided by a housing association. However, authorities should note that they remain responsible for the full amount should the resident fail to pay the home as agreed. In such a case the authority will recover the charge from the resident in the normal way.
Section 26(3A)(a)
Treatment of fractions in assessment
1.017 When any calculation in the assessment results in a fraction of a penny, round up if that would be in the resident's favour, otherwise round down.
Reg 4
Charges for Day Care Services
1.01 7AResi dents should not be charged extra for daytime activities which have been negotiated as part of the residential care package, as the cost of these services would already be included in the standard charge agreed by the LA for that package. Where a separate package of services has been arranged by the LA for a resident then the LA can consider whether to charge the resident extra for these services (using the discretionary charging powers for non-residential services). As the resident may only have their PEA and any disregarded income available, the amount charged (if any) is likely to be minimal.
Social Security Benefits
Local authority managed homes
1.018 People in residential accommodation which is managed or provided by a local authority are entitled to Income Support at an amount equivalent to the basic State Retirement Pension. People in this accommodation who receive at least the basic pension are not entitled to Income Support.
1.019 People in residential accommodation which is managed or provided by a local authority but which does not include board are entitled to Income Support as if they were living in their own home and may claim Housing Benefit.
Independent homes
1.020 People in registered independent residential care and nursing homes are entitled to Income Support at the same rate as if they were living in their own homes, plus a residential allowance. They are not entitled to Housing Benefit.
1.021 People in unregistered residential accommodation are entitled to Income Support at the same rate as if they were living in their own homes. They are not entitled to residential allowance, but may claim Housing Benefit.
Attendance Allowance/Disability Living Allowance (Care Component)
1 .021A See Annex D for details of entitlement to Attendance Allowance and Disability Living Allowance (DLA) (Care Component).
Admission to Hospital
1.022 When a resident is admitted to hospital, his Social Security benefits will be reduced after a period. See Annex E for details.
Preserved Rights
1.023 Local authorities have the power, through regulations under Section 86A of the Social Work (Scotland) Act 1968, to make residential accommodation arrangements for specified categories of people who have preserved rights to special levels of Income Support following the full implementation of the community care provisions in the NHSCC Act 1990 in April 1993. Where such arrangements are made the charging regulations and rules in this guidance will apply.
Liaison with Department of Social Security/Benefits Agency
1.024 It is important that LAs maintain good liaison arrangements with the Benefits Agency District Offices as in some aspects of the assessment the LA if they have not been able to obtain necessary information from the resident or another source, may need to contact the Benefits Agency's District Office. (see Circular 5W8/93)
Complaints
1.025 Complaints about the level of charge levied by a Local Authority are subject to the usual LA complaints procedures outlined in the Social Work Services Group Circular SWlS/1996, "Complaints Procedures", issued in March 1996 and in the practice Guidance, "A Right to Complain" issued in August 1991.
Background
2.001 Before April 1993, local authorities in Scotland arranging accommodation for less dependent residents were required to assess their ability to pay under the terms of the 1948 Act and levy a charge for their accommodation. For those requiring public assistance to meet the minimum charge local authorities nevertheless had powers to vary the amount of personal expenses allowance in order to provide such people with sufficient money in order to encourage them to live as independently as possible.
2.002 Under the terms of the National Assistance (Assessment of Resources) Regulations
1992 while an assessment of ability to pay must still be carried out if a resident cannot pay the full charge local authorities will have discretion not to apply Parts IT to V of the regulations relating to treatment of income, treatment of capital, liable relatives and students if appropriate. It will however, still be open to local authorities to vary the amount of personal expenses allowance if authorities prefer to augment a resident's personal income in that way.
Identifying "less dependent" residents
2.003 For the purposes of the charging rules a "less dependent" resident is a person who lives in:
a) private or voluntary sector accommodation which is not registered as a
residential care or nursing home, or
b) local authority accommodation that does not provide board.
Reg 2(1)
Definition of "board"
2.004 In 2.003 above, "board" means at least some cooked or prepared meals, cooked or prepared by someone other than the resident (or a member of his family) and eaten in the accommodation, where the cost of the meals is included in the standard rate fixed for the accommodation.
Reg 2
Assessing "less dependent" residents
2.005 It is up to the local authority how much it chooses to disregard of the resources of a person who is "less dependent". Factors to be taken into account include:
Reg 5
2.006 Where a resident is in local authority accommodation which does not provide board, or in independent sector accommodation which is not required to register the capital limits for Income Support and Housing Benefit will be £10,000 and £16,000.
Who is a temporary resident?
3.001 The definition of temporary resident allows the local authority to regard a person's stay as temporary if it is likely to last for any period not exceeding 52 weeks, or, in exceptional circumstances, is unlikely to substantially exceed 52 weeks.
Reg 2(1)
3.002 In deciding whether to treat a resident as temporary, it will be helpful to find out whether:
a) he receives Income Support which includes an amount in respect of home
commitments; and/or
b) Housing Benefit continues to be paid in respect of his home address.
Local authorities should note, however, that Income Support Housing Costs and Housing Benefit may only be payable for 13 weeks in some circumstances (see Circular SW 13 paragraphs 8 to 11).
3.003 Where a temporary resident has a partner their resources cannot be jointly assessed (see Section 4).
3.004 It must be recognised that a stay, which was initially expected to be permanent. may turn out to be temporary (eg the resident's condition improves dramatically when it was not expected to do so). In such cases, it would be unreasonable to continue to apply to that resident any rules which would have affected him as a permanent resident (eg treatment of the former dwelling, in particular the placing of a charge on the resident's interest in the property).
3.004A It must also be recognised that a stay, which was initially expected to be temporary, may turn out to be permanent. In such cases, it would be unreasonable to assess the resident's charge as if he was a permanent resident from the outset (eg take into account AA/DLA) as these resources may no longer be available to the resident. Assessment as a permanent resident should, therefore, begin from the date it is agreed that the stay is to become permanent.
Charging for temporary stay
Up to 8 weeks
3.005 An assessment of ability to pay is not required for the first 8 weeks of a temporary stay. It will be for the local authority to decide in each case whether to make an assessment. Where the local authority decides it is appropriate to make an assessment, follow the guidance in Sections 4 to 13. Where no assessment is made, the charge is the amount it appears reasonable to the local authority for the resident to pay.
Section 22(SA)
After 8 weeks
3.006 After 8 weeks, the local authority must charge the resident at the standard rate for the accommodation and carry out an assessment of his ability to pay.
Income Support for temporary residents
3 .006A Where a resident enters residential accommodation for a temporary period Income Support is not payable if his capital exceeds £8,000. This may mean that, where the resident has capital of above £8,000 but not more than £16,000, the resident's contribution towards the cost of his or her accommodation will not include any Income Support.
Assessing ability to pay
3.007 If the local authority decide to make an assessment straight away, or from the eighth week, his ability to pay should be assessed in accordance with the following paragraphs.
Capital
3.008 Disregard the dwelling normally occupied as the resident's home where:
a. the resident intends to return to occupy that dwelling and that the
dwelling is still available to him; or
b. he is taking reasonable steps to dispose of the property in order
to acquire another more suitable home for him to return to.
Schedule 4 para 1
For all other capital assets, follow the guidance in Section 6.
Income
3.009 If Income Support is in payment, check, from the resident's notice of award of Income Support, whether the benefit includes an amount in respect of housing costs. If it does, disregard the amount allowed. Income Support may be paid for home commitments for up to 52 weeks on admission to residential accommodation.
Schedule 3, para 26
3.010 If Housing Benefit is in payment in respect of the home address, disregard the amount of Housing Benefit in full.
Schedule 3, para 3
3.011 Income Support and Housing Benefit may not meet the full cost of continuing home commitments. Where there are extra costs, disregard such additional amount as appears reasonable. Extra costs might be:
Schedule 3, para 27
3.012 Where neither Income Support nor Housing Benefit are in payment in respect of the home address, assess the resident's income in accordance with Sections 8 and 9, and then disregard from the total such amount as appears reasonable to allow in respect of home commitments. Such expenses might be:
Schedule 3 para 27
A disregard on income to meet these expenses should also be allowed if the resident is taking reasonable steps to dispose of the property in order to acquire another more suitable home to which he will return.
Schedule 3 para 27
Couples
3.013 Where one or both members of a couple are temporarily in residential accommodation see Section 4 for their assessment.
Attendance Allowance (AA)/Disability Living Allowance (DLA) Care Component
3.0 14 Where the resident is a temporary resident, AA or DLA Care Component should be completely ignored but remember that either benefit will be withdrawn after 4 weeks if the resident is relying on public support. These rules also cover Constant Attendance Allowance and Exceptionally Severe Disability Allowance payable with Industrial Injuries Disablement Benefit or War Disablement Pension.
Schedule 3 para 6
Local authority treatment of couples
4.001 Under the National Assistance Act 1948, the local authority has no power to assess a couple according to their joint resources. Each person entering residential care should be assessed according to their individual means, although the liability of a married person to maintain their spouse (see Section 11) should be considered in each case.
4.002 Similarly, the local authority has no powers to use the assessment regulations as a basis for assessing how much a liable spouse should be able to contribute towards the cost of the residential accommodation.
4.003 'Where a resident is the main recipient of the couple's income, the local authority charge could result in a substantial reduction in income remaining for the spouse at home. In such cases it may be appropriate for the local authority to consider increasing the resident's personal expenses allowance, as described in Section 5 in order to leave enough for them to continue to support their partner at home. The use of this discretion should be considered and negotiated in the light of the individual circumstances of each case, but it would be reasonable for the local authority to take into account factors such as the usual standard of living of the spouse at home, and if the spouse has higher than average outgoings for whatever reason. However, the weight to be attached to these considerations will be for the authorities themselves to determine.
Capital limits for couples
4.003A Where a resident is one of a couple (irrespective of whether the resident's stay is permanent or temporary, or whether the other member of the couple is also a resident or remains in the former home) the resident must have in excess of £16,000 capital in his own right, or his share of jointly owned capital must be in excess of £16,000 before he is excluded from support on the grounds of capital.
Temporary residents
4.004 Where a member, or both members, of a married couple are admitted to residential accommodation on a temporary basis their ability to contribute towards the charge should be assessed individually according to Section 3. In every case, the local authority must assess each resident separately. Disregard any Income Support awarded in respect of home commitments. Income Support and Housing Benefit may not meet the lull cost of continuing home commitments. Where there are extra costs, disregard such additional amount as appears reasonable. Extra costs might include:
Permanent residents
4.005 Where one, or both, member of a couple are admitted permanently to residential accommodation the local authority must assess their ability to contribute towards the charge according to their individual resources following the rules laid down in Sections 5 to 13.
4.006 It will be useful to know how Income Support will be calculated in these cases, as this may give a guideline as to how much the spouse remaining at home is likely to be able to contribute towards the charge. Where Income Support is being paid for a couple who are married, and so liable to maintain each other under Section 42(1) of the National Assistance Act 1948, it would be reasonable to expect the partner receiving the Income Support to contribute towards the charge for accommodation for the other partner a sum equivalent to the Income Support payable for that partner. If Income Support is paid to the partner in residential accommodation, the full amount will have to be taken into account but the local authority could consider varying the personal expenses allowance as described in Section 5 in order to leave enough for the partner at home to meet their expenses.
The following paragraphs outline the ways in which Income Support may be assessed.
THE FOLLOWING PARAGRAPHS ARE FOR INFORMATION ONLY AND DETAIL THE TREATMENT OF COUPLES IN LOCAL AUTHORITY HOMES FOR INCOME SUPPORT
4.007 While local authorities do not have powers to assess a couple according to their joint resources this is not the case for Income Support. The treatment of a couple for Income Support will depend on a number of factors and it may be useful to know how their benefit is assessed. This may give an indication of how much the spouse who remains at home is likely to be able to contribute towards the cost of accommodation.
Temporary Residents
4.008 Where the couple are temporarily separated as a result of one being admitted to residential accommodation they will still be treated as a couple for Income Support purposes and the whole amount of Income Support will normally be paid to one partner (generally the partner remaining at home). However the total amount of Income Support payable to the couple ma be calculated by adding together the amounts each partner would receive if they were assessed as single people. This ensures that the total Income Support meets the couple's separate needs.
One member of a married couple temporarily in residential accommodation
4.009 Where only one member of a married couple is temporarily in a local authority managed home the Income Support applicable amount for the couple will be the amount laid down in paragraph 10B(1) of Schedule 7 to the Income Support regulations (the "Part III rate" - see Annex A) for the resident, and Income Support calculated as if he were a single person for the partner at home.
4.010 Where one partner is temporarily in an independent home, and the couple are entitled to In come Support, the Income Support applicable amount will be the greater of
Both partners temporarily in residential accommodation
4.011 Where both partners are temporarily in local authority managed homes, their Income Support entitlement will be twice the amount laid down in paragraph JOB (3) of Schedule 7 to the Income Support regulations (the "Part III rate" - see Annex A), plus an amount in respect of home commitments.
4.012 Where both partners are in residential care and one is in a local authority managed home and the other in an independent home, the Income Support entitlement will be the appropriate amount for each partner as if he were a single person, ie the Part III rate for the partner in a local authority managed home, and normal Income Support including Residential Allowance for the partner in an independent home, plus an amount for continuing home commitments where appropriate.
4.013 Where both partners are in different independent homes or the same independent home IS including Residential Allowance will be paid in respect of each partner, plus an amount for home commitments where appropriate.
One partner in residential accommodation or both partners in separate residential accommodation
4.014 Where one partner moves permanently to residential accommodation Income Support will be paid as if he were a single person. No account will be taken, in the Income Support assessment, of the resources of the partner remaining at home although the Benefit Agency may look to the partner at home to make a contribution as a liable relative.
INCOME SUPPORT TREA TMENT OF COUPLES
Both partners in the same residential accommodation
4. 015 Where both partners are admitted to the same residential care or nursing home, the Benefits Agency Adjudication Officer will have decided whether to assess them as couple or separately.
4.016 A married or unmarried couple who live in the same household are treated as one unit for Income Support assessment purposes, and their resources are "aggregated". This means that all the capital and income resources of the couple, whether jointly owned by one partner or the other, are taken into account in one assessment for the couple.
4.017 An important factor in deciding whether to treat two residents as a couple for Income Support purposes is whether they live in the same household A married couple living in separate homes would not be aggregated because they do not share one household.
4.018 Normally, if both partners are living in the same residential care or nursing home they would be considered to be living in the same household. However, there may be exceptions, eg where one partner lives in a nursing wing and the other in a residential wing, they might be said to live in separate households.
4. 019 If the Benefits Agency Adjudications Officer has decided to aggregate the couple's resources Income Support will be paid to one member of the couple taking into account the needs of both partners.
Purpose of the personal expenses allowance
5.001 The personal allowance is intended to enable residents to have money to spend as they wish, for example on stationery, personal toiletries, small presents for friends and relatives and other minor items. The residents will normally supply their own clothes but in cases of special need or emergency (eg all clothes are lost in a fire) the local authority may provide replacement clothing.
Amount of personal expenses allowance
5.002 In assessing a resident's ability to pay for his accommodation, the local authority is required to ensure that he retains an amount for personal expenses.
Section 22(4)
5.003 The amount allowed in the assessment for personal expenses is laid down each year in the National Assistance (Sums for Personal Expenses) Regulations (see Annex A) and is the same for each resident whether they are in a local authority run home or an independent sector home.
Varying the amount of personal expenses allowance
5.005 Under the Section 22(4) of the National Assistance Act of 1948 local authorities have the power to allow a different amount from that prescribed for personal expenses in special circumstances, for example where:
6.005 Capital over £10,000 and up to £16,000 is taken into account in full for the purposes of calculating the resident's tariff income from capital unless regulations specify otherwise (See 6.019 onwards).
Tariff income
6.006 V/here a resident has £16,000 or less but more than £10,000, assess the resident's ability to in the normal way and take into account, as weekly income, £1 for every complete £250 or part of £250 over £10,000. This is called "tariff income".
Reg 28
A tariff income table is set out at Annex B
Examples
1. The resident has £10,630 capital. £10,000 is disregarded and tariff
income of £3 is taken into account as income.
2. A resident has £10,050 capital. £10,000 is disregarded and tariff income
of £1 is taken into account as income.
NB. Tariff income is meant to represent an amount that a resident with capital over a certain limit should be able to contribute towards his accommodation costs, not the interest earning capacity of that capital.
Beneficial Ownership of capital
Does the resident own the capital?
6.007 A capital asset normally belongs to the person in whose name it is held. The following paragraphs provide guidance on how to establish beneficial ownership where there is a dispute.
Ownership disputed
6.008 Where ownership is disputed, ask for written evidence to prove ownership. Where a resident is said to be holding capital for another person, obtain evidence of the arrangement and the origin of the capital, and evidence to show the intentions for its future use and for its return to the rightful owner.
Examples
1. A resident has £12,000 in a building society account in his own name. He says that £3,000 is set aside for his grandson's education. However, there is no deed of trust or other legal arrangement which would prevent the resident using the whole amount for his own purposes. The resident is treated as the beneficial owner of the whole amount.
2. A resident has £5,000 in a bank account in his own name, and shares valued at £6,500. He provides evidence to show that the shares were purchased on behalf of his son, who is abroad, and that they will be transferred to his son when he returns to Britain. Although the resident is the legal owner, he is holding the shares in trust for his son, who is the beneficial owner. The £5,000 is to be taken into account as the resident's capital.
Joint Beneficial Ownership of Capital
6.009 Where a resident has joint beneficial ownership of capital, unless it is an interest in land (see Section 7), with someone else, divide the total value equally between the joint owners, and treat the resident as owning an equal share. This method of treatment avoids administrative difficulties. Once the resident is in sole possession of his actual share, treat him as owning that actual amount.
Reg 27(l)
Example
1. A resident and her daughter have £21,000 in a joint building society account. The resident contributed £8,500 and the resident's daughter, £12,500. Treat the resident as owning £10,500. The joint account is then closed and the resident and her daughter open separate accounts. The resident has £8,500 in her account. Treat her as owning £8,500.
Treatment of capital
Valuation
6.010 The value of a capital asset other than National Savings Certificates (see 6.017) is the current market or surrender value, whichever is higher, less:
a) 10% of that value if there would be any expenses involved in selling the asset; (this does not apply once the asset has been sold, when the capital has been sold, when the capital to be taken into account is the actual amount realised from the sale) and
Reg 23(1)(a)
b) any outstanding debts secured on the asset, eg a mortgage.
Reg 23(l)(b)
6.011 1 A capital asset may have a current market value (eg stocks and shares) or a surrender value (eg premium bonds). The current market value will be the price a willing buyer would pay a willing seller. The way the market value is obtained will depend on the type of asset held, eg the values of stocks and shares or unit trusts which are quoted in newspapers.
6.012 If the resident and the assessing officer both agree that, after deducting the amounts in paragraph 6.0 10 (a) and (b) (where appropriate), the total value of the resident's capital will be:
a) more than £16,000; or
b) £10,000 or less
it is not necessary to obtain a precise valuation. If there is any dispute, obtain a precise valuation.
6.013 In the case of land, buildings or a house, where it is necessary to obtain a precise valuation because of a dispute, a professional valuer should be asked to provide a current market valuation. (See Section 7 for the treatment of property).
Expenses of sale
6.014 For the purposes of valuation only, the expenses of sale (10%) should be allowed only where there will be actual expenses. The expenses must be connected with the actual sale, and not simply the realisation of an asset, eg the cost of fares to withdraw money from a bank are not expenses of sale.
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