Capitalised maintenance

I capitalised my maintenance rather than receiving monthly payts because I didnt trust him to pay but now I have capital which affects my CTC. Presumably they wont see this as maintenance-which doesnt get taken into account- but will see it as capital?
If I am right about them treating it as capital it may be something for others to consider when wondering whether to capitalise

Yes, it is capital, not maintenance, so it will be treated as such.

Hi
I'd just like to offer up a different response to this, as i have been researching what's taken into account etc for CTC/WTC as I'm applying for capitalised mntnce too.

Basically, maintenance from a former partner is not counted as income, neither is 'any other income' which is not taxable. According to the HMRC guidelines.

It is my understanding that divorce settlements are not taxable, according to my solicitor.
Based on this, my understanding is that a capitalised pymnt should not be taken into account as Income for CTC/WTC.

I wonder if anyone has any other knowledge or experience of this situation?
wysiwyg

I think the capitalised maintainance isnt taken into account as income - as it was received as a lump sum, and I wasnt taxed on it - but the interest that you receive on it is treated as income. They ignore the first £300 received in a year then it is taken into account. Its a good job I did capitalise it because I havent since had a penny of maintenance for the kids - but the CSA is a whole different story! - so maybe if you think he will be difficult to get any money out of him in the future then its a good decision. I was advised by solicitor and friends to accept the maintainance for life which the court suggested but I knew what he was like and arranged to have it capitalised - best decision I made!

Hi
It's also the case that any savings in ISA accounts are not part of the '£300 rule' re interest on savings....in the guidance notes there's one or two other places you can have savings which they don't take account of either
wysiwyg

Where can I see the "guidance notes" - I didnt know about the ISA interest

go to the HMRC site and look up Tax Credits.....you'll probably have to trawl around a bit under different headings but eventually you'll come to a section linked to Income and what counts etc....there will be a link to the notes.
Otherwise, with your next renewal/papers from TCO you should get a paper guide which will also include the info.
Happy ISA hunting!
wysiwyg