Hi Alison,
When you receive the £40,000 all your means tested Benefits will stop.
Unfortunately the six months disregard you are thinking of only applies to sale proceeds if you are moving house as follows:
Premises person is trying to sell
H2115 Where a person is trying to dispose of premises, they can be disregarded from the calculation of
that person’s capital where they are taking reasonable steps to dispose of the premises and those steps
have been commenced within the last 6 months1
.
1 UC Regs, Sch 10, para 6
Is it reasonable to disregard for longer
H2116 The DM may decide to disregard the premises for a longer period where for example the person
has done all they can to sell the premises and the asking price is no more than the premises are worth.
Here is a link to the DWP guidance.
assets.publishing.service.gov.uk/media/6...60c466d22a/admh2.pdf David
