UC - savings and jewellery

[Adele38]

Hi please can anyone advise whether buying jewellery would be seen as Deprivation of capital?

Are you buying expensive jewellery to deprive yourself of capital by buying an asset that retain resale value in order to be eligible for UC?

Or are you buying someone an Argos necklace for a birthday gift?

How much? Spending a couple of hundred probably not, spending 5k on a watch, probably. It would depend which decision maker you got on the day.

It would be expensive jewellery and not buying it to carry on claiming uc .

Basically in the migration year which is soon to be ending and we won’t be eligible to continue as have over 16k in savings - we only qualified for 12 months due to migration.

I have had my eye on getting some jewellery for some time but other things always pop up .

Probably 2k - 2200 in total for a necklace and ring

So presumably if you can afford to spend £2200 on jewellery and still have £14k in savings then you won't need to claim UC anyway?

Are you over the £16k entitlement, and the purchase would take you under it? If so, there might be questions asked should they ask in the future for bank statements as to whether this jewellery was bought as a personal item that is utilized, or something for the purposes of retaining the value in non monetary assets. There have been legal cases where people bought gold coins and UC decided these were assets, but the individual argued the case that he was a hobby coin collector so these were personal possessions.

Would the purchase bring you under 16k?

Interesting choice of first post - can I spend my savings on jewellery in order to carry on claiming benefits?

So you want other tax payers to supplement your income so you can buy Jewell's and continue to have savings?

This can't be real?

No we would still be over 16k so wouldn’t be carrying on the claim once the 12 months is up

No

How are you getting UC if you have over £16k?

Are you looking to spend that much to get under the £16k? If it brings you under it will look suspicious that you are doing this now and you may be picked up on it.

Are you moving over from tax credits?

I don’t understand then. You’re not going to claim so do what you want with your money.
Do you mean in future if you need to claim again?

Because those that transferred from tax credits can for a year if they have over 16k.

If it doesn’t bring you under £16k then what does it matter as you won’t be eligible for UC still? You can buy what you want with your own money if you’re not going to be claiming benefits.

Yes , if ever need to claim in the future . We will be living off savings for at least a year

Why don’t you wait until after that year to buy the jewellery?

Do the savings over 16k have the same deduction as those between 6 and 16k

They may question it if so, I'd just wait until you're no longer claiming

Price increases mainly and this won’t bring us under 16k I’ve heard stories where uc judge what you buy etc . We won’t be claiming after the 12 months as won’t be eligible

Yes we have the maximum deduction £174 which is 16k + for those who’ve migrated

They'd probably judge if you try to claim again within a year or 2 yes, but you'd probably be fine if it's 5 years in the future.

What sort of jewellery - new or vintage? New jewellery will reduce in value the minute you buy it, and will not increase for some time. A friend of mine invested in old gold jewellery at auction some years ago and she's done very well out of it, but don't spend money on new jewellery thinking it is a good investment. It's not.

New , im not buying to resell in future . Im buying because I like the items and want to wear them etc . I just heard stories where if your on uc you cant buy certain things etc