What is meant by capital ?

Capital includes savings and other assets such as shares and property. It excludes household furniture, clothing, tools of trade, capital value of a business if you are self-employed, capital held in trust funds, cars and other vehicles in regular use, back to work bonus and community care payments.

 

It also does not include any capital which is the subject matter of the dispute for which you are applying for public funding.

 

The equity in your home will be included if it is not the subject matter of the dispute. The Legal Services Commission will deduct the mortgage amount, but only up to a maximum of £100,000. They will then disregard the first £100,000 of the value of the property. The rest will form part of your capital.