19. What is included as capital?
Capital includes savings, investments, some lump-sum payments and the value of property and land (but if you own the home you live in, the value of your home, garden, garage and outbuildings is not taken into account). Certain types of capital can be disregarded; these are listed in 21 to 27 below.
Capital treated as income – Sometimes capital can be treated as income, in which case it is disregarded as capital. Sums paid regularly and for a specific period (eg payments under an annuity) are treated as income. If capital is payable by instalments, each payment of an instalment is treated as income if the total of all your capital, including the outstanding instalments, exceeds the £16,000 upper capital limit. If your total capital is less than or equal to £16,000, each instalment is treated as a payment of capital.