Deprivation of Assets Risk Assessment

Enter the details of the asset disposal below to assess whether it is likely to be treated as deprivation of assets under the Care Act 2014.

What Is Deprivation of Assets?

Under the Care Act 2014, a local authority can treat assets that have been given away or transferred as notional capital — meaning they are still counted in your financial assessment as if you still owned them. This applies when the council decides the main reason for the disposal was to reduce your capital to qualify for council-funded care.

The capital thresholds for care funding in England in 2026 are:

There is no statutory time limit on how far back a local authority can investigate. A gift made 10 or 20 years ago can still be challenged if the council believes avoiding care fees was a motivation.

Frequently Asked Questions

What is deprivation of assets in the UK?

Deprivation of assets occurs when a local authority decides that a person has deliberately disposed of assets — by giving them away, spending them, or transferring them — in order to reduce their capital and qualify for council-funded care. Under the Care Act 2014 and associated regulations, the local authority can treat the disposed assets as "notional capital" and still include their value in the means test, as if the person still owned them.

Can I give money to my children to avoid care home fees?

Giving money to your children specifically to avoid paying care home fees is likely to be treated as deliberate deprivation of assets by the local authority. If the council decides the main reason for the gift was to reduce your capital for means-testing purposes, they can include the gifted amount as notional capital in your financial assessment. This means you would still be expected to contribute to care costs as if you still held those assets. There is no safe time limit — gifts made many years ago can still be assessed.

How far back can councils look for deprivation of assets?

There is no statutory time limit on how far back a local authority can look when investigating potential deprivation of assets. Unlike some countries, England and Wales have no look-back period. A council can, in principle, investigate gifts or transfers made many years or even decades before a care needs assessment, provided they believe the motivation was to avoid care fees. The key test is whether avoiding care fees was a significant reason for the disposal at the time.

What is the care home means test in 2026?

The care home means test in England in 2026 has two capital thresholds: the upper threshold is £23,250 — above this you pay the full cost of care yourself (self-funder). The lower threshold is £14,250 — below this your capital is ignored and the council funds your care (subject to income contributions). Between £14,250 and £23,250, a tariff income is applied: for every £250 above the lower threshold, £1 per week is added to your assumed income. These thresholds have remained unchanged since 2010.

Can I transfer my house to avoid care home fees?

Transferring your house to children or other relatives specifically to avoid care home fees is likely to be treated as deprivation of assets. The local authority will look at the timing and motivation. If you were already in poor health, had received care needs advice, or if the transfer coincided with a care assessment, it is particularly likely to be challenged. Your home may also be disregarded in the means test while your spouse, a carer, or a dependent relative lives in it. Seek specialist legal advice before making any such transfer.