How does the CSA calculate payments on savings and property?

[Vonsworld]

Hello

 

Please could someone clarifiy how the CSA calculates NRP payments on savings and property?

 

It's been several years since I researched this topic, but my understanding in the past was as follows:

 

They can only assess savings over £65,000, so if you had £100000 in savings they would be interested in the last £35K. They then assume you are earning a fabulous 8% income from this investment!

 

Therefore the income figure would be 8% of £35,000 which is £2800, and the payment would be the usual 12% of this amount, as it is with your other income. So the payment would be £336 per year.

 

Is this an accurate interpretation of their rules please?

 

It's a bit confusing because on other forums some people seem to think that if you have savings over £65K then the CSA would assess the whole amount, so that would be the full £100K in the above example. I don't see how this could be true because there would be no incentive not to just spend any savings above £65.

 

Thanks for your feedback