http://www.legislation.gov.uk/uksi/2002/1792/regulation/21/2023-04-10The State Pension Credit Regulations 2002texttext/xmlenStatute Law DatabaseSOCIAL SECURITY2024-11-29Expert Participation2023-04-10 The Regulations contained in this Instrument are made either by virtue of, or in consequence of, provisions in the State Pension Credit Act 2002 (c.16) (“the 2002 Act”). This Instrument is made before the expiry of the period of 6 months beginning with the coming into force of those provisions; the regulations in it are therefore exempt in accordance with section 173(5) of the Social Security Administration Act 1992 from the requirement in section 172(2) of that Act to refer proposals to make Regulations to the Social Security Advisory Committee and are made without reference to that Committee. PART III<Emphasis>Income</Emphasis> Notional capital211A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to state pension credit or increasing the amount of that benefit except to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 22 (diminishing notional capital rule).2A person who disposes of a capital resource for the purpose of—areducing or paying a debt owed by the claimant; orbpurchasing goods or services if the expenditure was reasonable in the circumstances of the claimant’s case,shall be regarded as not depriving himself of it.3Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he shall be treated as if he were such sole owner or partner and in such a case—athe value of his holding in that company shall, notwithstanding regulation 19 (calculation of capital), be disregarded; andbhe shall, subject to paragraph (4), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Chapter shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.4For so long as a claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (3) shall be disregarded.5Where under this regulation a person is treated as possessing capital, the amount of that capital shall be calculated in accordance with the provisions of this Part as if it were actual capital which he does possess.Reg. 21(3)-(5) added (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) Regulations 2002 (S.I. 2002/3019), regs. 1(2)(b), 23(j)Reg. 21(1) substituted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 (S.I. 2002/3197), reg. 1(1)(b), Sch. para. 6Reg. 21(2) substituted (5.4.2004) by The State Pension Credit (Miscellaneous Amendments) Regulations 2004 (S.I. 2004/647), regs. 1, 3(5)
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<dc:title>The State Pension Credit Regulations 2002</dc:title>
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<Strong>PART III</Strong>
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<Emphasis>Income</Emphasis>
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<Title> Notional capital</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/uksi/2002/1792/regulation/21/2023-04-10" IdURI="http://www.legislation.gov.uk/id/uksi/2002/1792/regulation/21" id="regulation-21">
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<Substitution ChangeId="key-367b5f015383879833dc907f9a728cfc-1564650166056" CommentaryRef="key-367b5f015383879833dc907f9a728cfc">A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to state pension credit or increasing the amount of that benefit except to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 22 (diminishing notional capital rule).</Substitution>
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<Substitution ChangeId="key-fdce1843ef69bd41c843138b59a4d0ff-1565251890106" CommentaryRef="key-fdce1843ef69bd41c843138b59a4d0ff">2</Substitution>
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<Substitution ChangeId="key-fdce1843ef69bd41c843138b59a4d0ff-1565251890106" CommentaryRef="key-fdce1843ef69bd41c843138b59a4d0ff">A person who disposes of a capital resource for the purpose of—</Substitution>
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<Substitution ChangeId="key-fdce1843ef69bd41c843138b59a4d0ff-1565251890106" CommentaryRef="key-fdce1843ef69bd41c843138b59a4d0ff">a</Substitution>
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<Substitution ChangeId="key-fdce1843ef69bd41c843138b59a4d0ff-1565251890106" CommentaryRef="key-fdce1843ef69bd41c843138b59a4d0ff">reducing or paying a debt owed by the claimant; or</Substitution>
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<Substitution ChangeId="key-fdce1843ef69bd41c843138b59a4d0ff-1565251890106" CommentaryRef="key-fdce1843ef69bd41c843138b59a4d0ff">b</Substitution>
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<Substitution ChangeId="key-fdce1843ef69bd41c843138b59a4d0ff-1565251890106" CommentaryRef="key-fdce1843ef69bd41c843138b59a4d0ff">purchasing goods or services if the expenditure was reasonable in the circumstances of the claimant’s case,</Substitution>
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<Substitution ChangeId="key-fdce1843ef69bd41c843138b59a4d0ff-1565251890106" CommentaryRef="key-fdce1843ef69bd41c843138b59a4d0ff">shall be regarded as not depriving himself of it.</Substitution>
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<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">3</Addition>
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<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he shall be treated as if he were such sole owner or partner and in such a case—</Addition>
</Text>
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<Pnumber>
<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">a</Addition>
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<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">the value of his holding in that company shall, notwithstanding regulation 19 (calculation of capital), be disregarded; and</Addition>
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<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">b</Addition>
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<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">he shall, subject to paragraph (4), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Chapter shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.</Addition>
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<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">4</Addition>
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<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">For so long as a claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (3) shall be disregarded.</Addition>
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<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">5</Addition>
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<Addition ChangeId="key-cb2acb3bdebd935e17b3b7f040da144f-1564650077248" CommentaryRef="key-cb2acb3bdebd935e17b3b7f040da144f">Where under this regulation a person is treated as possessing capital, the amount of that capital shall be calculated in accordance with the provisions of this Part as if it were actual capital which he does possess.</Addition>
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Reg. 21(3)-(5) added (6.10.2003) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/2002/3019" id="cgerdhny3-00007" Class="UnitedKingdomStatutoryInstrument" Year="2002" Number="3019" Title="The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) Regulations 2002">The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) Regulations 2002 (S.I. 2002/3019)</Citation>
,
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,
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Reg. 21(1) substituted (6.10.2003) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/2002/3197" id="cgerdhny3-00017" Class="UnitedKingdomStatutoryInstrument" Year="2002" Number="3197" Title="The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002">The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 (S.I. 2002/3197)</Citation>
,
<CitationSubRef CitationRef="cgerdhny3-00017" id="cgerdhny3-00018" URI="http://www.legislation.gov.uk/id/uksi/2002/3197/regulation/1/1/b" SectionRef="regulation-1-1-b">reg. 1(1)(b)</CitationSubRef>
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<CitationSubRef CitationRef="cgerdhny3-00017" id="cgerdhny3-00019" URI="http://www.legislation.gov.uk/id/uksi/2002/3197/schedule/paragraph/6" SectionRef="schedule-paragraph-6" Operative="true">Sch. para. 6</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="key-fdce1843ef69bd41c843138b59a4d0ff" Type="F">
<Para>
<Text>
Reg. 21(2) substituted (5.4.2004) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/2004/647" id="cgopqm8b3-00008" Class="UnitedKingdomStatutoryInstrument" Year="2004" Number="647" Title="The State Pension Credit (Miscellaneous Amendments) Regulations 2004">The State Pension Credit (Miscellaneous Amendments) Regulations 2004 (S.I. 2004/647)</Citation>
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<CitationSubRef CitationRef="cgopqm8b3-00008" id="cgopqm8b3-00009" URI="http://www.legislation.gov.uk/id/uksi/2004/647/regulation/1" SectionRef="regulation-1">regs. 1</CitationSubRef>
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<CitationSubRef CitationRef="cgopqm8b3-00008" id="cgopqm8b3-00010" URI="http://www.legislation.gov.uk/id/uksi/2004/647/regulation/3/5" SectionRef="regulation-3-5" Operative="true">3(5)</CitationSubRef>
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