13. In these Regulations “notional income” means income which, by virtue of regulations 14 to 17 a claimant is treated as having, but which he does not in fact have.
14.—(1) If an amount is treated for any purpose as the claimant’s income under any provision mentioned in paragraph (2), he is to be treated as having that amount of income.
(2) The provisions mentioned in paragraph (1) are—
(a)the following provisions of the Taxes Act—
(i)section 34 (treatment of premiums etc. as rent)(1);
(ii)section 56 (transactions in deposits with and without certificates or in debts)(2) or 56A (disposal or exercise of rights in pursuance of deposits)(3);
(iii)section 249 (stock dividends treated as income)(4);
(iv)section 421 (taxation of borrower when loan to participators in a close company released etc.)(5);
(v)section 660A (income arising under settlement where settlor retains an interest)(6);
(vi)section 660B (payments to unmarried minor children of settlor)(7);
(vii)section 677 (sums paid to settlor otherwise than as income)(8) or 678 (capital sums paid by body connected with settlement)(9);
(viii)section 695 (limited interests in residue of estate in administration)(10) or 696 (absolute interests in residue of estate in administration)(11);
(ix)section 714 (transfers of securities: treatment of deemed sums and reliefs)(12) or 716 (transfer of unrealised interest);
(x)section 730 (transfer of income arising from securities)(13);
(xi)section 730A (treatment of price differential on sale and repurchase of securities)(14);
(xii)section 739 (prevention of avoidance of income tax)(15);
(xiii)section 740 (liability of non-transferors)(16);
(xiv)section 761 (charge to income tax of offshore income gain)(17); and
(xv)section 776 (transactions in land: taxation of chargeable gains)(18); and
(b)paragraph 1 of Schedule 13 to the Finance Act 1996 (discounted securities: charge to tax on realised profit comprised on a discount).
15. If a claimant has deprived himself of income for the purpose of securing entitlement to, or increasing the amount of, a tax credit, he is treated as having that income.
16.—(1) If income would become available to a claimant upon the making of an application for that income he is treated as having that income.
This is subject to the following qualification.
(2) Paragraph (1) does not apply in relation to income—
(a)under a trust derived from a payment made in consequence of a personal injury;
(b)under a personal pension scheme or retirement annuity contract;
(c)consisting in a sum to which item 8 of Table 4 in regulation 10 refers (compensation for personal injuries which is administered by the Court); or
(d)consisting in a rehabilitation allowance made under section 2 of the Employment Act.
17.—(1) If a claimant provides a service for another person and—
(a)the other person makes no payment of earnings or pays less than those paid for a comparable employment (including self-employment) in the area; and
(b)the Board are satisfied that the means of the other person are sufficient for him to pay for, or to pay more for, the service,
the claimant is to be treated as having such an amount of employment income, or in the case of a service provided in the course of a trade or business, such an amount of trading income as is reasonable for the employment of the claimant to provide the service.
This is subject to the following qualification.
(2) Paragraph (1) does not apply where—
(a)the claimant is a volunteer or is engaged to provide the service by a charitable or voluntary organisation and the Board are satisfied that it is reasonable for the claimant to provide the service free of charge; or
(b)the service is provided in connection with the claimant’s participation in an employment or training programme—
(i)in Great Britain in accordance with regulation 19(1)(q) of the Jobseeker’s Allowance Regulations 1996 other than where it is provided in connection with the claimant’s participation in the Intensive Activity period specified in regulation 75(1)(a)(iv) of those Regulations; or
(ii)in Northern Ireland in accordance with regulation 19(1)(p) of the Jobseeker’s Allowance Regulations (Northern Ireland) 1996(19) other than where it is provided in connection with the claimant’s participation in the Preparation for Employment Programme specified in regulation 75(1)(a)(v) of those Regulations(20).
Section 34 was amended by Part 8(1) of Schedule 29 to the Finance Act 1995 (c. 4) and section 40 of, and paragraph 15 of Schedule 5 to, the Finance Act 1998 (c. 36).
Section 56 was amended by paragraph 14(3) of Schedule 10 to the Taxation of Chargeable Gains Act 1992 (c. 12), paragraph 2 of Schedule 18 to the Finance Act 1993 (c. 34) and section 164(4) of, and paragraph 6 of Schedule 14 to, the Finance Act 1996 (c. 8).
Section 56A was inserted by paragraph 1 of Schedule 8 to the Finance (No. 2) Act 1992 (c. 48).
Section 249 was amended by Part 5 of Schedule 17 to the Finance Act 1989 (c. 26), section 19(4) of the Finance (No. 2) Act 1992, section 77(3) of the Finance Act 1993, paragraph 6 of Schedule 6 to the Finance Act 1996 and paragraph 10 of Schedule 4 to the Finance (No. 2) Act 1997 (c. 58).
Section 421 was amended by section 19(6) of the Finance (No. 2) Act 1992, section 77(4) of the Finance Act 1993, section 122(6) of, and paragraph 9 of Schedule 6 to, the Finance Act 1996 and paragraph 11 of Schedule 4 to the Finance (No. 2) Act 1997.
Section 660A was inserted, together with sections 660B to 660G, by paragraph 1 of Schedule 17 to the Finance Act 1995 and amended by section 41(6) of, and paragraph 26 of Schedule 13 and Part 2(4) of Schedule 40 to, the Finance Act 2000 (c. 17).
Section 660B was amended by section 64(1) to (4) of the Finance Act 1999 (c. 16).
Section 677 was amended by section 109(4) of the Finance Act 1989, paragraph 7 of Schedule 6 to the Finance Act 1993 and paragraph 9 of Schedule 17 to the Finance Act 1995.
Section 678 was amended by paragraph 10 of Schedule 17 to the Finance Act 1995.
Section 695 was amended by paragraph 11(1) of Schedule 6 to the Finance Act 1993 and paragraph 2 of Schedule 18, and Part 8(10) of Schedule 29, to the Finance Act 1995.
Section 696 was amended by paragraph 11(1) of Schedule 6 to the Finance Act 1993 and paragraph 3 of Schedule 18 to the Finance Act 1995.
Section 714 was amended by Part 5(3) of Schedule 41 to the Finance Act 1996.
Section 730 was amended by paragraph 23 of Schedule 7 to the Finance Act 1996.
Section 730A was inserted by section 80(1) of the Finance Act 1995 and amended by paragraph 37 of Schedule 14 to the Finance Act 1996.
Section 739 was amended by section 81 of the Finance Act 1997 (c. 16).
Section 740 was amended by paragraph 6 of Schedule 26 to the Finance Act 2000.
Section 761 was amended by paragraph 11 of Schedule 14 to the Finance Act 1990 (c. 29) and paragraph 14(47) of Schedule 10, and Schedule 12, to the Taxation of Chargeable Gains Act 1992.
Section 776 was amended by paragraph 14(50) of Schedule 10 to the Taxation of Chargeable Gains Act 1992 and section 46(3) of, and paragraph 1 of Schedule 7 to, the Finance Act 1998.
Regulation 75 was substituted by regulation 8 of S.R. 1997 No. 541 and paragraph (1)(a)(v) inserted by regulation 5(a) of S.R. 2001 No. 151.