Value means-tested capital less 10% sale expenses and secured debt (UC reg 49 and legacy equivalents)

changelog.d/uc-capital-sale-expenses.fixed.md

@@ -0,0 +1 @@
+Value Universal Credit, Housing Benefit, Income Support, income-based JSA, income-related ESA and Pension Credit capital at market value less 10% where a sale would incur expenses and less any debt secured on the asset, as UC Regs 2013 reg. 49(1) and its legacy equivalents require. The 10% applies to land, property and share-like capital (share_like_capital), not to cash savings; share-like capital also holds unit trusts, which have no costs of sale, and in datasets built before the private pension split it holds pension wealth, so the deduction reaches those too until the data separate them. Adds secured-debt inputs for other residential property, non-residential property and land. Each programme rounds a fraction of a penny in its capital calculations as its regulations require: to the nearest penny for Universal Credit (UC Regs 2013 reg. 6(1)) and Housing Benefit, and down for the legacy benefits and Pension Credit. A Lifetime ISA's surrender value is worked out from its balance and rounded under the same rule. Explicit Lifetime ISA capital inputs and reformed valuation formulas are preserved.

policyengine_uk/data/uprating_indices.yaml

@@ -122,13 +122,14 @@ gov.economic_assumptions.yoy_growth.obr.per_capita.gdp:
 - miscellaneous_income
 - mortgage_capital_repayment
 - net_financial_wealth
-- non_residential_property_value
 - non_residential_property_secured_debt
+- non_residential_property_value
 - other_investment_income
 - other_residential_property_secured_debt
 # Non-residential purchase prices and land retain GDP-per-capita growth.
 - non_residential_property_purchased
 - owned_land
+- owned_land_secured_debt
 # A formula of benunit_reported_capital; listed so a dataset that stores it
 # directly is uprated like the input.
 - pension_credit_reported_capital

policyengine_uk/parameters/gov/dwp/ESA/income/capital/round_down.yaml

@@ -0,0 +1,17 @@
+description: >
+  Whether a fraction of a penny in an income-related Employment and Support
+  Allowance capital calculation is disregarded (true) rather than rounded to
+  the nearest penny (false). A fraction of a penny is treated as a penny
+  only where that is to the claimant's advantage, and is otherwise
+  disregarded; for capital that means rounding down.
+values:
+  2008-10-27: true
+metadata:
+  label: Income-related ESA capital rounded down to the penny
+  period: year
+  unit: bool
+  reference:
+    - title: The Employment and Support Allowance Regulations 2008 reg. 3(a)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/3
+    - title: The Employment and Support Allowance Regulations (Northern Ireland) 2008 reg. 3(a)
+      href: https://www.legislation.gov.uk/nisr/2008/280/regulation/3

policyengine_uk/parameters/gov/dwp/ESA/income/capital/sale_expenses/rate.yaml

@@ -0,0 +1,18 @@
+description: >
+  Share of the current market or surrender value deducted from income-related
+  ESA capital where there would be expenses attributable to sale. It is a flat
+  10% whatever the actual costs, taken from the gross value before any
+  encumbrance secured on the asset is deducted.
+values:
+  2008-10-27: 0.1
+metadata:
+  label: Income-related ESA capital sale expense deduction
+  period: year
+  unit: /1
+  reference:
+    - title: Employment and Support Allowance Regulations 2008 reg. 113(a)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/113
+    - title: Employment and Support Allowance Regulations (Northern Ireland) 2008 reg. 113(a)
+      href: https://www.legislation.gov.uk/nisr/2008/280/regulation/113
+    - title: Decision Makers' Guide chapter 52, para. 52624
+      href: https://assets.publishing.service.gov.uk/media/69d8f30ad3e08b8871b665ac/dmg-Ch-52.pdf#page=116

policyengine_uk/parameters/gov/dwp/ESA/income/capital/sale_expenses/sources.yaml

@@ -0,0 +1,40 @@
+description: >
+  Capital sources whose sale would incur expenses, so that income-related ESA
+  values them at 90% of market value. Costs of sale normally arise where an
+  agent, broker, auctioneer, solicitor or accountant is needed, and real
+  property always has them (DMG 52622), so `owned_land`,
+  `other_residential_property_value` and `non_residential_property_value` are
+  listed. `savings` is not listed: a bank or building society account is
+  valued at its balance, and the costs of withdrawing money are not costs of
+  sale (DMG 52620-52623 and 52685). `share_like_capital` (`corporate_wealth`,
+  or its itemised components where they exceed it) is listed because shares
+  are valued less 10% for the costs of selling them (DMG 52671). It is a mixed
+  variable, though: it also holds unit trusts, which have no costs of sale
+  (DMG 52681), stocks and shares ISAs and employee share options, and datasets
+  built before private pension wealth was split out also fold
+  non-defined-benefit pension wealth into it, which is not capital at all. The
+  deduction reaches all of these until the data separate them. Sources not
+  counted as income-related ESA capital are ignored.
+metadata:
+  label: Income-related ESA capital sources with sale expenses
+  period: year
+  unit: list
+  reference:
+    - title: Employment and Support Allowance Regulations 2008 reg. 113(a)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/113
+    - title: Employment and Support Allowance Regulations (Northern Ireland) 2008 reg. 113(a)
+      href: https://www.legislation.gov.uk/nisr/2008/280/regulation/113
+    - title: Decision Makers' Guide chapter 52, paras. 52620-52622
+      href: https://assets.publishing.service.gov.uk/media/69d8f30ad3e08b8871b665ac/dmg-Ch-52.pdf#page=115
+    - title: Decision Makers' Guide chapter 52, para. 52623
+      href: https://assets.publishing.service.gov.uk/media/69d8f30ad3e08b8871b665ac/dmg-Ch-52.pdf#page=116
+    - title: Decision Makers' Guide chapter 52, para. 52671
+      href: https://assets.publishing.service.gov.uk/media/69d8f30ad3e08b8871b665ac/dmg-Ch-52.pdf#page=126
+    - title: Decision Makers' Guide chapter 52, paras. 52681 and 52685
+      href: https://assets.publishing.service.gov.uk/media/69d8f30ad3e08b8871b665ac/dmg-Ch-52.pdf#page=128
+values:
+  2008-10-27:
+    - owned_land
+    - other_residential_property_value
+    - non_residential_property_value
+    - share_like_capital

policyengine_uk/parameters/gov/dwp/JSA/income/capital/round_down.yaml

@@ -0,0 +1,17 @@
+description: >
+  Whether a fraction of a penny in an income-based Jobseeker's Allowance
+  capital calculation is disregarded (true) rather than rounded to the
+  nearest penny (false). A fraction of a penny is treated as a penny only
+  where that is to the claimant's advantage, and is otherwise disregarded;
+  for capital that means rounding down.
+values:
+  1996-10-07: true
+metadata:
+  label: Income-based JSA capital rounded down to the penny
+  period: year
+  unit: bool
+  reference:
+    - title: The Jobseeker's Allowance Regulations 1996 reg. 92
+      href: https://www.legislation.gov.uk/uksi/1996/207/regulation/92
+    - title: The Jobseeker's Allowance Regulations (Northern Ireland) 1996 reg. 92
+      href: https://www.legislation.gov.uk/nisr/1996/198/regulation/92

policyengine_uk/parameters/gov/dwp/JSA/income/capital/sale_expenses/rate.yaml

@@ -0,0 +1,21 @@
+description: >
+  Share of the current market or surrender value deducted from income-based
+  JSA capital where there would be expenses attributable to sale. It is a flat
+  10% whatever the actual costs, taken from the gross value before any
+  encumbrance secured on the asset is deducted. Before 1 October 2007 the same
+  deduction sat in reg. 111(a)(i) alongside a separate valuation for National
+  Savings Certificates; SI 2007/2618 substituted the regulation in its current
+  form.
+values:
+  1996-10-07: 0.1
+metadata:
+  label: Income-based JSA capital sale expense deduction
+  period: year
+  unit: /1
+  reference:
+    - title: Jobseeker's Allowance Regulations 1996 reg. 111(a)
+      href: https://www.legislation.gov.uk/uksi/1996/207/regulation/111
+    - title: Jobseeker's Allowance Regulations (Northern Ireland) 1996 reg. 111(a), as substituted by S.R. 2007/396 reg. 7(11)
+      href: https://www.legislation.gov.uk/nisr/2007/396/regulation/7
+    - title: Decision Makers' Guide chapter 29, para. 29624
+      href: https://assets.publishing.service.gov.uk/media/69d8f3a496c86b751317022c/dmg-Ch-29.pdf#page=125

policyengine_uk/parameters/gov/dwp/JSA/income/capital/sale_expenses/sources.yaml

@@ -0,0 +1,38 @@
+description: >
+  Capital sources whose sale would incur expenses, so that income-based JSA
+  values them at 90% of market value. Costs of sale normally arise where an
+  agent, broker, auctioneer, solicitor or accountant is needed, and real
+  property always has them (DMG 29622), so `owned_land`,
+  `other_residential_property_value` and `non_residential_property_value` are
+  listed. `savings` is not listed: a bank or building society account is
+  valued at its balance, and the costs of withdrawing money are not costs of
+  sale (DMG 29620-29623 and 29685). `share_like_capital` (`corporate_wealth`,
+  or its itemised components where they exceed it) is listed because shares
+  are valued less 10% for the costs of selling them (DMG 29671). It is a mixed
+  variable, though: it also holds unit trusts, which have no costs of sale
+  (DMG 29681), stocks and shares ISAs and employee share options, and datasets
+  built before private pension wealth was split out also fold non-
+  defined-benefit pension wealth into it, which is not capital at all. The
+  deduction reaches all of these until the data separate them. Sources not
+  counted as income-based JSA capital are ignored.
+metadata:
+  label: Income-based JSA capital sources with sale expenses
+  period: year
+  unit: list
+  reference:
+    - title: Jobseeker's Allowance Regulations 1996 reg. 111(a)
+      href: https://www.legislation.gov.uk/uksi/1996/207/regulation/111
+    - title: Jobseeker's Allowance Regulations (Northern Ireland) 1996 reg. 111(a), as substituted by S.R. 2007/396 reg. 7(11)
+      href: https://www.legislation.gov.uk/nisr/2007/396/regulation/7
+    - title: Decision Makers' Guide chapter 29, paras. 29620-29623
+      href: https://assets.publishing.service.gov.uk/media/69d8f3a496c86b751317022c/dmg-Ch-29.pdf#page=124
+    - title: Decision Makers' Guide chapter 29, para. 29671
+      href: https://assets.publishing.service.gov.uk/media/69d8f3a496c86b751317022c/dmg-Ch-29.pdf#page=137
+    - title: Decision Makers' Guide chapter 29, paras. 29681 and 29685
+      href: https://assets.publishing.service.gov.uk/media/69d8f3a496c86b751317022c/dmg-Ch-29.pdf#page=139
+values:
+  1996-10-07:
+    - owned_land
+    - other_residential_property_value
+    - non_residential_property_value
+    - share_like_capital

policyengine_uk/parameters/gov/dwp/housing_benefit/means_test/capital/round_down.yaml

@@ -0,0 +1,22 @@
+description: >
+  Whether a fraction of a penny in a Housing Benefit capital calculation is
+  disregarded (true) rather than rounded to the nearest penny (false). Any
+  amount determined under the regulations may, if appropriate, be rounded to
+  the nearest whole penny, disregarding less than half a penny and treating
+  half a penny or more as a penny. That is the regulations' only rounding
+  rule, and the model applies it.
+values:
+  2006-04-10: false
+metadata:
+  label: Housing Benefit capital rounded down to the penny
+  period: year
+  unit: bool
+  reference:
+    - title: The Housing Benefit Regulations 2006 reg. 80
+      href: https://www.legislation.gov.uk/uksi/2006/213/regulation/80
+    - title: The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 reg. 61(6)
+      href: https://www.legislation.gov.uk/uksi/2006/214/regulation/61
+    - title: The Housing Benefit Regulations (Northern Ireland) 2006 reg. 78(8)
+      href: https://www.legislation.gov.uk/nisr/2006/405/regulation/78
+    - title: The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations (Northern Ireland) 2006 reg. 59(7)
+      href: https://www.legislation.gov.uk/nisr/2006/406/regulation/59

policyengine_uk/parameters/gov/dwp/housing_benefit/means_test/capital/sale_expenses/rate.yaml

@@ -0,0 +1,27 @@
+description: >
+  Share of the current market or surrender value deducted from Housing Benefit
+  capital where there would be expenses attributable to sale. It is a flat 10%
+  whatever the actual costs, taken from the gross value before any encumbrance
+  secured on the asset is deducted. Before 1 October 2007 the same deduction
+  sat in reg. 47(a)(i) (reg. 45(a)(i) at pension age) alongside a separate
+  valuation for National Savings Certificates; SI 2007/2618 substituted the
+  regulation in its current form.
+values:
+  2006-04-10: 0.1
+metadata:
+  label: Housing Benefit capital sale expense deduction
+  period: year
+  unit: /1
+  reference:
+    - title: The Housing Benefit Regulations 2006 reg. 47(a)
+      href: https://www.legislation.gov.uk/uksi/2006/213/regulation/47
+    - title: The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 reg. 45(a)
+      href: https://www.legislation.gov.uk/uksi/2006/214/regulation/45
+    - title: The Housing Benefit Regulations (Northern Ireland) 2006 reg. 44(a)
+      href: https://www.legislation.gov.uk/nisr/2006/405/regulation/44
+    - title: The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations (Northern Ireland) 2006 reg. 43(a)
+      href: https://www.legislation.gov.uk/nisr/2006/406/regulation/43
+    - title: Housing Benefit Guidance Manual BW1, para. W1.430
+      href: https://assets.publishing.service.gov.uk/media/5a749328ed915d0e8e3994c0/hbgm-bw1-assessment-of-capital.pdf#page=36
+    - title: MH v London Borough of Waltham Forest (HB) [2016] UKUT 161 (AAC), para. 43
+      href: https://www.gov.uk/administrative-appeals-tribunal-decisions/mh-v-london-borough-of-waltham-forest-hb-2016-ukut-161-aac

policyengine_uk/parameters/gov/dwp/housing_benefit/means_test/capital/sale_expenses/sources.yaml

@@ -0,0 +1,53 @@
+description: >
+  Capital sources whose sale would incur expenses, so that Housing Benefit
+  values them at 90% of market value. Costs of sale normally arise where an
+  agent, broker, auctioneer, solicitor or accountant is needed, and real
+  property always has them (R(IS) 21/93, as DMG 29622 applies it; HBGM W1.430
+  states the general 10% rule), so `owned_land`,
+  `other_residential_property_value` and `non_residential_property_value` are
+  listed. `savings` is not listed: a bank or building society account is
+  valued at its balance, and the costs of withdrawing money are not costs of
+  sale (HBGM BW1 Annex F and BP1 F2.03). `share_like_capital`
+  (`corporate_wealth`, or its itemised components where they exceed it) is
+  listed because shares are valued less 10% for the costs of selling them
+  (HBGM W1.513). It is a mixed variable, though: it also holds unit trusts,
+  which have no costs of sale (HBGM W1.530-W1.531), stocks and shares ISAs and
+  employee share options, and datasets built before private pension wealth was
+  split out also fold non-defined-benefit pension wealth into it, which is not
+  capital at all. The deduction reaches all of these until the data separate
+  them. Sources not counted as Housing Benefit capital are ignored.
+metadata:
+  label: Housing Benefit capital sources with sale expenses
+  period: year
+  unit: list
+  reference:
+    - title: The Housing Benefit Regulations 2006 reg. 47(a)
+      href: https://www.legislation.gov.uk/uksi/2006/213/regulation/47
+    - title: The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 reg. 45(a)
+      href: https://www.legislation.gov.uk/uksi/2006/214/regulation/45
+    - title: The Housing Benefit Regulations (Northern Ireland) 2006 reg. 44(a)
+      href: https://www.legislation.gov.uk/nisr/2006/405/regulation/44
+    - title: The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations (Northern Ireland) 2006 reg. 43(a)
+      href: https://www.legislation.gov.uk/nisr/2006/406/regulation/43
+    - title: Housing Benefit Guidance Manual BW1, para. W1.430
+      href: https://assets.publishing.service.gov.uk/media/5a749328ed915d0e8e3994c0/hbgm-bw1-assessment-of-capital.pdf#page=36
+    - title: Housing Benefit Guidance Manual BP1, para. P1.430
+      href: https://assets.publishing.service.gov.uk/media/5a7ec5d840f0b6230268b71f/hbgm-bp1-assessment-of-capital.pdf#page=31
+    - title: Decision Makers' Guide chapter 29, para. 29622 (real property, R(IS) 21/93)
+      href: https://assets.publishing.service.gov.uk/media/69d8f3a496c86b751317022c/dmg-Ch-29.pdf#page=124
+    - title: Housing Benefit Guidance Manual BW1, para. W1.513
+      href: https://assets.publishing.service.gov.uk/media/5a749328ed915d0e8e3994c0/hbgm-bw1-assessment-of-capital.pdf#page=43
+    - title: Housing Benefit Guidance Manual BW1, paras. W1.530-W1.531
+      href: https://assets.publishing.service.gov.uk/media/5a749328ed915d0e8e3994c0/hbgm-bw1-assessment-of-capital.pdf#page=43
+    - title: Housing Benefit Guidance Manual BP1, paras. P1.513 and P1.530-P1.531
+      href: https://assets.publishing.service.gov.uk/media/5a7ec5d840f0b6230268b71f/hbgm-bp1-assessment-of-capital.pdf#page=38
+    - title: Housing Benefit Guidance Manual BW1, Annex F
+      href: https://assets.publishing.service.gov.uk/media/5a749328ed915d0e8e3994c0/hbgm-bw1-assessment-of-capital.pdf#page=93
+    - title: Housing Benefit Guidance Manual BP1, paras. F2.00-F2.03
+      href: https://assets.publishing.service.gov.uk/media/5a7ec5d840f0b6230268b71f/hbgm-bp1-assessment-of-capital.pdf#page=83
+values:
+  2006-04-10:
+    - owned_land
+    - other_residential_property_value
+    - non_residential_property_value
+    - share_like_capital

policyengine_uk/parameters/gov/dwp/income_support/means_test/capital/round_down.yaml

@@ -0,0 +1,18 @@
+description: >
+  Whether a fraction of a penny in an Income Support capital calculation is
+  disregarded (true) rather than rounded to the nearest penny (false). A
+  fraction of a penny is treated as a penny only where that is to the
+  claimant's advantage, and is otherwise disregarded; for capital that means
+  rounding down. The Northern Ireland regulation disregards any fraction of
+  a penny in capital.
+values:
+  2010-01-01: true
+metadata:
+  label: Income Support capital rounded down to the penny
+  period: year
+  unit: bool
+  reference:
+    - title: The Income Support (General) Regulations 1987 reg. 27
+      href: https://www.legislation.gov.uk/uksi/1987/1967/regulation/27
+    - title: The Income Support (General) Regulations (Northern Ireland) 1987 reg. 27
+      href: https://www.legislation.gov.uk/nisr/1987/459/regulation/27

policyengine_uk/parameters/gov/dwp/income_support/means_test/capital/sale_expenses/rate.yaml

@@ -0,0 +1,20 @@
+description: >
+  Share of the current market or surrender value deducted from Income Support
+  capital where there would be expenses attributable to sale. It is a flat 10%
+  whatever the actual costs, taken from the gross value before any encumbrance
+  secured on the asset is deducted. Before 1 October 2007 the same deduction
+  sat in reg. 49(a)(i) alongside a separate valuation for National Savings
+  Certificates; SI 2007/2618 substituted the regulation in its current form.
+values:
+  2010-01-01: 0.1
+metadata:
+  label: Income Support capital sale expense deduction
+  period: year
+  unit: /1
+  reference:
+    - title: Income Support (General) Regulations 1987 reg. 49(a)
+      href: https://www.legislation.gov.uk/uksi/1987/1967/regulation/49
+    - title: Income Support (General) Regulations (Northern Ireland) 1987 reg. 49(a), as substituted by S.R. 2007/396 reg. 4(10)
+      href: https://www.legislation.gov.uk/nisr/2007/396/regulation/4
+    - title: Decision Makers' Guide chapter 29, para. 29624
+      href: https://assets.publishing.service.gov.uk/media/69d8f3a496c86b751317022c/dmg-Ch-29.pdf#page=125