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The Child Support (Maintenance Assessments and Special Cases) Regulations 1992

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Version Superseded: 06/04/1999

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[F1Interpretation

1.(1) In this Schedule—

“property” means—

(a)

a legal estate or an equitable interest in land; or

(b)

a sum of money which is derived from or represents capital, whether in cash or in the form of a deposit with—

(i)

the Bank of England;

(ii)

an authorised institution or an exempted person within the meaning of the Banking Act 1987;

(iii)

a building society incorporated or deemed to be incorporated under the Building Societies Act 1986;

(c)

any business asset as defined in sub-paragraph (2) (whether in the form of money or an interest in land or otherwise);

(d)

any policy of insurance which has been obtained and retained for the purpose of providing a capital sum to discharge a mortgage or charge secured upon an estate or interest in land which is also the subject of the transfer (in this schedule referred to as an endowment policy);

“qualifying transfer” means a transfer of property—

(a)

which was made in pursuance of a court order made, or a written maintenance agreement executed, before 5th April 1993;

(b)

which was made between the absent parent and either the parent with care or a relevant child;

(c)

which was made at a time when the absent parent and the parent with care were living separate and apart;

(d)

the effect of which is that the parent with care or a relevant child is beneficially entitled (subject to any mortgage or charge) to the whole of the asset transferred; and return

(e)

which was not made expressly for the purpose only of compensating the parent with care for the loss of any right to apply for or receive periodical payments or a capital sum in respect of herself.

“Compensating transfer” means a transfer of property which would be a qualifying transfer (disregarding the requirement of paragraph (e) of the definition of “qualifying transfer”) if it were made by the absent parent, but which is made by the parent with care in favour of the absent parent or a relevant child;

“relevant date” means the date of the making of the court order or the execution of the written maintenance agreement in pursuance of which the qualifying transfer was made.

(2) For the purposes of sub-paragraph (1) “business asset” means an asset, whether in the form of money or an interest in land or otherwise which, prior to the date of transfer was use in the course of a trade or business carried on—

(a)by the absent parent as a sole trader;

(b)by the absent parent in partnership, whether with the parent with care or not;

(c)by a close company within the meaning of sections 414 and 415 of the Income and Corporation Taxes Act 1988 in which the absent parent was a participator at the date of the transfer.

(3) Where the condition specified in regulation 10(a)

is satisfied this Schedule shall apply as if references—

(a)to the parent with care were references to the absent parent; and

(b)to the absent parent were references to the parent with care.]

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