PART 1Care and support
Enforcement of debts
69Recovery of charges, interest etc.
1
Any sum due to a local authority under this Part is recoverable by the authority as a debt due to it.
2
But subsection (1) does not apply in a case where a deferred payment agreement could, in accordance with regulations under section 34(1), be entered into, unless—
a
the local authority has sought to enter into such an agreement with the adult from whom the sum is due, and
b
the adult has refused.
3
A sum is recoverable under this section—
a
in a case in which the sum becomes due to the local authority on or after the commencement of this section, within six years of the date the sum becomes due;
b
in any other case, within three years of the date on which it becomes due.
4
Where a person misrepresents or fails to disclose (whether fraudulently or otherwise) to a local authority any material fact in connection with the provisions of this Part, the following sums are due to the authority from the person—
a
any expenditure incurred by the authority as a result of the misrepresentation or failure, and
b
any sum recoverable under this section which the authority has not recovered as a result of the misrepresentation or failure.
5
The costs incurred by a local authority in recovering or seeking to recover a sum due to it under this Part are recoverable by the authority as a debt due to it.
6
Regulations may—
a
make provision for determining the date on which a sum becomes due to a local authority for the purposes of this section;
b
specify cases or circumstances in which a sum due to a local authority under this Part is not recoverable by it under this section;
c
specify cases or circumstances in which a local authority may charge interest on a sum due to it under this Part;
d
where interest is chargeable, provide that it—
i
must be charged at a rate specified in or determined in accordance with the regulations, or
ii
may not be charged at a rate that exceeds the rate specified in or determined in accordance with the regulations.
70Transfer of assets to avoid charges
1
This section applies in a case where an adult’s needs have been or are being met by a local authority under sections 18 to 20 and where—
a
the adult has transferred an asset to another person (a “transferee”),
b
the transfer was undertaken with the intention of avoiding charges for having the adult’s needs met, and
c
either the consideration for the transfer was less than the value of the asset or there was no consideration for the transfer.
2
The transferee is liable to pay to the local authority an amount equal to the difference between—
a
the amount the authority would have charged the adult were it not for the transfer of the asset, and
b
the amount it did in fact charge the adult.
3
But the transferee is not liable to pay to the authority an amount which exceeds the benefit accruing to the transferee from the transfer.
4
Where an asset has been transferred to more than one transferee, the liability of each transferee is in proportion to the benefit accruing to that transferee from the transfer.
5
“Asset” means anything which may be taken into account for the purposes of a financial assessment.
6
The value of an asset (other than cash) is the amount which would have been realised if it had been sold on the open market by a willing seller at the time of the transfer, with a deduction for—
a
the amount of any incumbrance on the asset, and
b
a reasonable amount in respect of the expenses of the sale.
7
Regulations may specify cases or circumstances in which liability under subsection (2) does not arise.