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Glossary · General

Deliberate deprivation of assets

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Definition: A local-authority test under the Care Act 2014: was avoiding the care charge a 'significant motivation' for disposing of an asset, and could the person reasonably have foreseen needing care?

If deprivation is found, the local authority can treat the asset as still owned ('notional capital') for the means test, and in some cases recover its value from the recipient under s70 Care Act 2014.

There is no fixed time limit. The widely-quoted '7-year rule' is an Inheritance Tax rule (s3A IHTA 1984) with no application to care fees, despite frequent confusion.

Primary source: gov.uk/government/publications/care-act-statutory-guidance/care-and-support-statutory-guidance

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