PART 5CHARGING AND FINANCIAL ASSESSMENT
Enforcement of debts
I172Transfer of assets to avoid charges
1
This section applies in a case where the needs of a person (“P”) have been or are being met by a local authority under sections 35 to 42 or section 45 and where—
a
a person (“the transferor”) (who may be P but need not be so) has transferred an asset to another person (a “transferee”),
b
the transfer was undertaken with the intention of avoiding charges for having P'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 transferor were it not for the transfer of the asset, and
b
the amount it did in fact charge the transferor.
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
In this section “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 encumbrance 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.