I have read the following:
"34007
Where there is more than one type of asset held, their value will not be added together to meet the threshold. Where there is only a single type of asset, they can be considered as one asset, and their aggregate value considered against the threshold limit." The limit being £31,250
But I'd like to query if stocks from different companies are classed as different assets, or if they'd be considered the same type?
For example:
£31,250 of Tesla shares
£31,250 of Google shares
Would these be combined, and 8% of £62,500 be added to income to calculate CMS payments?
Hi,
Theres more info here; I don't know if they combine assets when doing calculations.
Income and assets
Both the paying and receiving parent can ask for the following types of income and assets to be taken into account:
- rental income over £2,500 a year
- interest and dividends from savings and investments over £2,500 a year
- gross earnings or pension of at least £100 a week - if the paying parent gets benefits and qualifies to pay the ‘flat rate’ of child maintenance
- any income the paying parent may be diverting so that it is not included in the calculation (for example, giving it to someone else or choosing to have a company car instead of a higher salary)
- assets like shares, stocks, gold or money worth more than £31,250
https://www.gov.uk/how-child-maintenance-is-worked-out/ask-other-income-expenses-included
I would like to know this as well, but it seems the legislation is worded quite vague and with phrases like "would otherwise be unreasonable having taken into account all relevant circumstances"
However, there is some important exclusions, one of the main ones that may help you is "could have been purchased from the gross weekly income of the non-resident parent which has been taken into account for the purposes of a maintenance calculation" so if you purchases the shares with income that has already been included in CMS during the case has been active then they would be excluded.
https://www.legislation.gov.uk/uksi/2012/2677/regulation/69A
What I want to know and this isn't clear either imo, is if you have £31,250 in an asset its not included, however if you have £31,251 is the whole amount included not just £1? So 8% of £31,251 not 8% of £1?
@dadsmithy hi, I don't know the process but I don't think it would be worth their time and effort to apply 8% to £1. they have the general 25% tolerance rule, to lessen their burden on adinistrative work.
@bill337 oh yeah of course not for £1 i was just using it as an example, do they calculate based on the whole amount once it's over £31,250 or just the amount over £31,250?
@dadsmithy not sure. Answer could be here, big report for download:
https://commonslibrary.parliament.uk/research-briefings/cbp-7773/