Civil legal aid: assessment of capital resources and relevant disregards/allowances

All capital resources must be taken into account, excluding the following:-

• the home in which the client and their partner live
• the client’s household furniture and clothing
• the client’s tools and equipment they need for work
• the value of any property or asset that is the subject of the dispute
• Payments made under the Windrush Compensation Scheme, or connected to Windrush

In considering if an asset can be disregarded because it is subject matter of the dispute it must be shown that, at the date of application,  the asset is the subject of some form of request to the court for an order (for example a specific crave or conclusion, or the prayer in a Petition).

Examples of capital include:

• the amount that could be borrowed against all land and buildings the client or their partner own, other than the property in which the applicant lives, including interests in timeshares
• money in the bank, building society, post office, premium bonds, national savings certificates etc.
• investments, stocks and shares, including ISAs
• money that can be borrowed against insurance policies
• the value of other non-essential possessions, such as a boat, a caravan, second car, jewellery (but not wedding or engagement rings), antiques or items bought for investment
• money owed to the client or their partner
• money due from the will of someone who has died
• money due from a trust fund
• money that can be borrowed against business assets
• redundancy payments.

Children’s accounts

If your client operates accounts held in the name of their children we will generally disregard the money held for assessment purposes on the basis that this does not belong to them and is the capital of the child.

That is not to say that we have no interest in the existence of such accounts. Your client should declare these accounts in their Financial Form 2 and provide up to date statements.

There may be a risk of capital being transferred by an applicant in to an account of their child just prior to an application for legal aid which would be likely to constitute deprivation of resources. Therefore Regulation 12 may be engaged.

If your client appears to be using money from the account of their child for their own benefit this money may be included as Income for assessment purposes.

Each case will be considered on its own set of facts.

Examples of capital include:

• The amount that could be realised from the sale of all land and buildings your client or their partner owns, other than the your client’s home property, including interests in timeshares.
• Money in the bank, building society, post office, premium bonds, national savings and investments etc.
• Investments, stocks and shares, including ISAs.
• Money that can be realised from policies
• The re-sale value of other non-essential possessions, such as a boat, a caravan, second car, jewellery (excluding wedding or engagement rings), antiques or investment items.
• Money owed to your client or partner
• Money due from inheritance
• Money due from a trust fund
• Money that can be realised or borrowed against business assets
• Redundancy payments.