Dorset Council Tax Reduction Capital Limit: The £6,000 Rule Explained

The £6,000 Ceiling

Working-age applicants in Dorset with capital of £6,000 or more are disqualified from Council Tax Reduction. This is a hard cut-off — there's no sliding scale or tariff income calculation. You're either under £6,000 and potentially eligible, or at £6,000 and above and out.

This is significantly lower than the £16,000 capital limit that applies to pension-age claimants under the national scheme, and lower than the capital limits used by some other English councils' working-age schemes.

What Counts as Capital

Dorset Council counts the combined value of:

• Bank current accounts
• Savings accounts and building society deposits
• Premium Bonds
• Stocks, shares, and ISAs
• The commercial market value of any land or property you own beyond your main home

Your primary home — the property you're claiming CTR on — doesn't count. But a second property, a buy-to-let, or a plot of land you own does, at its market value.

The One Exception

If you receive a passported legacy benefit — specifically Income Support, Income-Based Jobseeker's Allowance, or Income-Related Employment and Support Allowance — you remain eligible for CTR even if your capital exceeds £6,000. These benefits already have their own capital assessments, so the council treats them as a passport to CTR without a separate capital test.

This exception doesn't apply to Universal Credit claimants. UC has a £16,000 capital limit for the benefit itself, but Dorset's CTR scheme applies its own £6,000 ceiling independently.

What Doesn't Count

Your home, household contents, and personal possessions aren't capital for these purposes. The value of any vehicle you use isn't counted either. Assets of a business you run as a self-employed earner are disregarded under the scheme's capital rules. Dorset Council's Self-Employed Income Form is used to report business income and expenditure.

Approaching the Threshold

If your capital is close to £6,000, remember that working-age applicants with £6,000 or more are ineligible unless they receive one of the passported legacy benefits described above. If you are receiving CTR and your capital increases, report the change to Dorset Council within 21 days; it can affect your award.

For the full capital assessment rules and the income calculation worksheet, see the Dorset Council Tax Reduction guide.

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