The Child Support and Income Support (Amendment) Regulations 1995

Regulation 57

SCHEDULE 1 E+W+S SCHEDULE TO BE INSERTED INTO THE MAINTENANCE ASSESSMENTS AND SPECIAL CASES REGULATIONS AS SCHEDULE 3A TO THOSE REGULATIONS

Regulations 9(1)(bb)

“SCHEDULE 3A E+W+S AMOUNT TO BE ALLOWED IN RESPECT OF TRANSFER OF PROPERTY

Interpretation

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 M1 ;

(iii) a building society incorporated or deemed to be incorporated under the Building Societies Act 1986 M2 ;

(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 M3 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.

Evidence to be produced in connection with the allowance for transfers of property

2.— (1) Where the absent parent produces to the Secretary of State—

(a) contemporaneous evidence in writing of the making of a court order or of the execution of a written maintenance agreement, which requires the relevant person to make a qualifying transfer of property;

(b) evidence in writing and whether contemporaneous or not as to—

(i) the fact of the transfer;

(ii) the value of the property transferred at the relevant date;

(iii) the amount of any mortgage or charge outstanding at the relevant date,

an amount in respect of the relevant value of the transfer determined in accordance with the following provisions of this Schedule shall be allowed in calculating or estimating the exempt income of the absent parent.

(2) Whether the evidence specified in sub-paragraph (1) is not produced within a reasonable time after the Secretary of State has been notified of the wish of the absent parent that a child support officer consider the question, the officer shall determine the question on the basis that the relevant value of the transfer is nil.

Consideration of evidence produced by other parent

3.   Where an absent parent has notified the Secretary of State that he wishes a child support officer to consider whether an amount should be allowed in respect of the relevant value of a qualifying transfer, the Secretary of State shall give notice to the other parent that he proposes to refer the question to a child support officer for consideration and shall transmit to the child support officer any representations made by the other parent in considering the question.

Computation of qualifying value—business assets and land

4.— (1) Subject to paragraph 6, where the property which is the subject of the transfer by the absent parent is, or includes an estate or interest in land, or a business asset, the qualifying value of that estate, interest or asset shall be determined in accordance with the formula—

where—

(i)QV is the qualifying value,

(ii)VT is the value of the estate or interest in land or the value of the asset (as the case may be) calculated at the relevant date, and

(iii)MC is the amount of the principal outstanding at the relevant date under any mortgage or charge on the estate, interest or asset.

(2) For the purposes of sub-paragraph (1) the value of an estate or interest in land is to be determined upon the basis that the parent with care and any relevant child, if in occupation of the land, would quit on completion of the sale.

Computation of qualifying value—cash, deposits and endowment policies

5.   —Subject to paragraph 6, where the property which is the subject of the qualifying transfer is, or includes—

(i) a sum of money whether in cash or in the form of a deposit with the Bank of England, and authorised institution or exempted person within the meaning of the Banking Act 1987, or a building society incorporated or deemed to be incorporated under the Building societies Act 1986, derived from or representing capital; or

(ii) an endowment policy,

the amount of the qualifying value shall be determined by applying the formula—

where—

(a)QV is the qualifying value; and

(b)VT is the amount of cash, the balance of the account or the surrender value of the endowment policy on the relevant date.

Transfer wholly in lieu of periodical payments for relevant child

6.   Where the evidence produced in relation to a transfer to, or in respect of, a relevant child, shows expressly that the whole of that transfer was made exclusively in lieu of periodical payments in respect of that child—

(a) in a case to which paragraph 4 applies, for the formula given in that paragraph there shall be substituted the following—

and

(b) in a case to which paragraph 5 applies, the qualifying value shall be the value of the transfer.

Multiple transfers to related persons

7.— (1) Where there has been more than one qualifying transfer from the absent parent—

(a) to the same parent with care;

(b) to or for the benefit of the same relevant child;

(c) to or for the benefit of two or more relevant children with respect to all of whom the same persons are respectively the parent with care and the absent parent;

or any combination thereof, the relevant value by reference to which the allowance is to be calculated in accordance with paragraph 10 shall be the aggregate of the qualifying transfers calculated individually in accordance with the preceding paragraphs of this Schedule, less the value of any compensating transfer or where there has been more than one, the aggregate of the values of the compensating transfers so calculated.

(2) Except as provided by sub-paragraph (1), the values of transfers shall not be aggregated for the purposes of this Schedule.

Computation of the value of compensation transfers

8.   The value of a compensation transfer shall be determined in accordance with paragraph 4 to 7 above, but as if any reference in those paragraphs—

(a) to the absent parent were a reference to the parent with care;

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

(c) to a qualifying transfer were a reference to a compensating transfer.

Computation of relevant value of a qualifying transfer

9.   The relevant value of a qualifying transfer shall be calculated by deducting from the qualifying value of the qualifying transfer the qualifying value of any compensating transfer between the same persons as are parties to the qualifying transfer.

Amount to be allowed in respect of a qualifying transfer

10.   For the purposes of regulation 9(1)(bb), the amount to be allowed in the computation of E, or in the case where regulation 10(a) applies, F, shall be—

(a) where the relevant value calculated in accordance with paragraph 9 is less than £5,000, nil;

(b) where the relevant value calculated in accordance with paragraph 9 is at least £5,000, but less than £10,000, £20.00 per week;

(c) where the relevant value calculated in accordance with paragraph 9 is at least £10,000, but less than £25,000, £40.00 per week;

(d) where the relevant value calculated in accordance with paragraph 9 is not less than £25,000, £60.00 per week.

11.   This Schedule in its application to Scotland shall have effect as if—

(a) in paragraph 1 for the words “legal estate or equitable interest in land” there were substituted the words “ an interest in land within the meaning of section 2(6) of the Conveyancing and Feudal Reform (Scotland) Act 1970 M4 ”;

(b) in paragraph 4 the word “estate.” and the words “estate or” in each place where they respectively occur were omitted.”

Marginal Citations

M1 1987 c.22.

M2 1986 c.53.

M3 1986 c.1.

M4 1970 c.35.

Regulation 57

SCHEDULE 2 E+W+S SCHEDULE TO BE INSERTED INTO THE MAINTENANCE ASSESSMENTS AND SPECIAL CASES REGULATIONS AS SCHEDULE 3B TO THOSE REGULATIONS

Regulation 9(1)(i) and 11(1)(k)

“SCHEDULE 3B E+W+S AMOUNT TO BE ALLOWED IN RESPECT OF TRAVELLING COSTS

Interpretation

1.   In this Schedule—

• “day” means, in relation to a person who attends at a work place for one period of work which commences before midnight of one day and concludes the following day, the first of those days;

• “journey” means a single journey, and “pair of journeys” means two journeys in opposing directions, between the same two places;

• “relevant employment” means an employed earner’s employment in which the relevant person is employed and in the course of which he is required to attend at a work place, and “relevant employer” means the employer of the relevant person in that employment;

• “relevant person” means—

  (a)

  in the application of the provisions of this Schedule to regulation 9, the absent parent or the parent with care; and

  (b)

  in the application of the provisions of this Schedule to regulation 11, the absent parent;

• “straight-line distance” means the straight-line distance measured in miles and calculated to 2 decimal places, and, where that distance is not a whole number of miles, rounded to the nearest whole number of miles, a distance which exceeds a whole number of miles by 0.50 of a mile being rounded up;

  “travelling costs” means the costs of—

  (a)

  purchasing either fuel or a ticket for the purpose of travel;

  (b)

  contributing to the costs borne by a person other than a relevant employer in providing transport; or

  (c)

  paying another to provide transport,

  which are incurred by the relevant person in travelling between the relevant person’s home and his work place, and where he has more than one relevant employment between any of his work places in those employments;

• “work place” means the relevant person’s normal place of employment in a relevant employment, and “deemed work place” means a place which has been selected by the child support officer, pursuant either to paragraph 8(2) or 15(2) for the purpose of calculating the amount to be allowed in respect of the relevant person’s travelling costs.

Computation of amount allowable in respect of travelling costs

2.   For the purpose of regulation 9 and regulation 11 an amount in respect of the travelling costs of the relevant person shall be determined in accordance with the following provisions of this Schedule if the relevant person—

(a) has travelling costs; and

(b) provides the information required to enable the amount of the allowance to be determined.

Computation in cases where there is one relevant employment and one work place in that employment

3.   Subject to paragraphs 21 to 23, where the relevant persons has one relevant employment and is normally required to attend at only one work place in the course of that employment the amount to be allowed in respect of travelling costs shall be determined in accordance with paragraphs 4 to 7 below.

4.   There shall be calculated or, if this is impracticable, estimated—

(a) the straight-line distance between the relevant person’s home and his work place;

(b) the number of journeys between the relevant person’s home and this work place which he makes during a period comprising a whole number of weeks which appears to the child support officer to be representative of his normal pattern of work, there being disregarded any pair of journeys between his work place and his home and where the first journey is from his work place to his home and where the time which elapses between the start of the first journey and the conclusion of the second is not more than two hours.

5.   The results of the calculation or estimate produced by sub-paragraph (a) of paragraph 4 shall be multiplied by the result of the calculation or estimate required by sub-paragraph (b) of that paragraph.

6.   The product of the multiplication required by paragraph 5 shall be divided by the number of weeks in the period.

7.   Where the result of the division required by paragraph 6 is less than or equal to 150, the amount to be allowed in respect of the relevant person’s travelling costs shall be nil, and where it is greater than 150 the weekly allowance to be made in respect of the relevant person’s travelling costs shall be 10 pence multiplied by the number by which that number exceeds 150.

Computation in cases where there is more than one work place but only one relevant employment

8.— (1) Subject to sub-paragraph (2) and paragraphs 21 to 23 below, where the relevant person has one relevant employment but attends at more than one work place the amount to be allowed in respect of travelling costs for the purposes of regulations 9 and 11 shall be determined in accordance with paragraphs 9 to 13.

(2) Where it appears that the relevant person works at more than one work place but his pattern of work is not sufficiently regular to enable the calculation of the amounts to be allowed in respect of his travelling costs to be made readily, the child support officer may—

(a) select a place which is either one of the relevant person’s work places or some other place which is connected with the relevant employment; and

(b) apply the provisions of paragraphs 4 to 7 above to calculate the amount of the allowance to be made in respect of travelling costs upon the basis that the relevant person makes one journey from his home to the deemed work place and one journey from the deemed work place to home on each day on which he attends at a work place in connection with relevant employment,

and the provision of paragraphs 9 to 13 shall not apply.

(3) For the purposes of sub-paragraph (2)(b) there shall be disregarded any day upon which the relevant person attends at a work place and in order to travel to or from that work place he undertakes a journey in respect of which—

(a) the travelling costs are borne wholly or in part by the relevant employer; or

(b) the relevant employer provides transport for any part of the journey for the use of the relevant person,

and where he attends at more than one work place on the same day that day shall be disregarded only if the condition specified in this sub-paragraph is satisfied in respect of all the work places at which he attends on that day,

9.   There shall be calculated, or if that is impracticable, estimated—

(a) the straight-line distances between the relevant person’s home and each work place; and

(b) the straight-line distances between each of the relevant person’s work places, other than those between which he does not ordinarily travel.

10.   Subject to paragraph 11, there shall be calculated for each pair of places referred to in paragraph 9 the number of journeys which the relevant person makes between them during a period comprising a whole number of weeks which appears to the child support officer to be representative of the normal working pattern of the relevant person.

11.   For the purposes of the calculation required by paragraph 10 there shall be disregarded—

(a) any pair of journeys between the same work place and the relevant person’s home where the first journey is from his work place to his home and the time which elapses between the start of the first journey and the conclusion of the second is not more than two hours; and

(b) any journey in respect of which—

(i) the travelling costs are borne wholly or in part by the relevant employer; or

(ii) the relevant employer provides transport for any part of the journey for the use of the relevant person.

12.   The result of the calculation of the number of journeys made between each pair of places required by paragraph 10 shall be multiplied by the result of the calculation or estimate of the straight-line distance between them required by paragraph 9.

13.   All the products of the multiplications required by paragraph 12 shall be added together and the resulting sum divided by the number of weeks in the period.

14.   Where the result of the division required by paragraph 13 is less than or equl to 150, the amount to be allowed in respect of travelling costs shall be nil, and where it is greater than 150, the weekly allowance to be made in respect of the relevant person’s travelling costs shall be 10 pence multiplied by the number by which that number exceeds 150.

Computation in cases where there is more than one relevant employment

15.— (1) Subject to sub-paragraph (2) and paragraphs 21 to 23, where the relevant person has more than one relevant employment the amount to be allowed in respect of travelling costs for the purposes of regulations 9 and 11 shall be determined in accordance with paragraphs 16 to 20.

(2) Where it appears that in respect of any of his relevant employments, whilst the relevant person works at more than one work place, his pattern or work is not sufficiently regular to enable the calculations of the amount to be allowed in respect of his travelling costs to be made readily, the child support officer—

(a) may select a place which is either one of the relevant person’s work places in that relevant employment or some other place which is connected with that relevant employment;

(b) may calculate the weekly average distance travelled in the course of his journeys made in connection with the relevant employment upon the basis that—

(i) the relevant person makes one journey from his home, or from another work place or deemed work place in another relevant employment, to the deemed work place and one journey from the deemed work place to his home, or to another work place or deemed work place in another relevant employment, on each day on which he attends at a work place in connection with the relevant employment in relation to which the deemed work place has been selected, and

(ii) the distance he travels between those places is the straight-line distance between them; and

(c) shall disregard any journeys made between work places in the relevant employment in respect of which a deemed work place has been selected.

(3) For the purposes of sub-paragraph (2)(b) there shall be disregarded any day upon which the relevant person attends at a work place and in order to travel to or from that work place he undertakes a journey in respect of which—

(a) the travelling costs are borne wholly or in part by the relevant employer; or

(b) the relevant employer provides transport for any part of the journey for the use of the relevant person,

and where in the course of the particular relevant employment he attends at more than one work place on the same day, that day shall be disregarded only if the condition specified in this paragraph is satisfied in respect of all the work places at which he attends on that day in the course of that employment.

16.   There shall be calculated, or if that is impracticable, estimated—

(a) the straight-line distances between the relevant person’s home and each work place; and

(b) the straight-line distances between each of the relevant person’s work places, except—

(i) those between which he does not ordinarily travel, and

(ii) those for which a calculation of the distance from the relevant person’s home is not required by virtue of paragraph 15(c).

17.   There shall be calculated, or if that is impracticable, estimated for each pair of places referred to in paragraph 16 between which straight-line distances are required to be calculated or estimated the number of journeys which the relevant person makes between them during a period comprising a whole number of weeks which appears to the child support officer to be representative of the normal working pattern of the relevant person, thee being disregarded any pair of journeys between the same work place and his home where the first journey is from his work place to his home and the time which elapses between the start of the first journey and the conclusion of the second is not more than two hours.

18.   The result of the calculation or estimate of the number of journeys made between each pair of places required by paragraph 17 shall be multiplied by the result of the calculation or estimate of the straight-line distance between them required by paragraph 16.

19.   All the products of the multiplications required by paragraph 18, shall be added together and the resulting sum divided by the number of weeks in the period.

20.   Where the result of the division required by paragraph 19, plus where appropriate the result of the calculation required by paragraph 15 in respect of a relevant employment in which a deemed work place has been selected, is less than or equal to 150 the amount to be allowed in respect of travelling costs shall be nil, and where it is greater than 150, the weekly allowance to be made in respect of the relevant person’s travelling costs shall be 10 pence multiplied by the number by which that number exceeds 150.

Relevant employments in respect of which no amount is to be allowed

21.— (1) No allowance shall be made in respect of travelling costs in respect of journeys between the relevant person’s home and his work place or between his work place and his home in a particular relevant employment if the condition set out in paragraph 22 or 23 is satisfied in respect of that employment.

(2) The condition mentioned in paragraph 22, or as the case may be 23, is satisfied in relation to a case where the relevant person has more than one work place in a relevant employment only where the employer provides assistance of the kind mentioned in that paragraph in respect of all of the work places to or from which the relevant person travels in the course of that employment, but those journeys in respect of which that assistance is provided shall be disregarded in computing the total distance travelled by the relevant person in the course of the relevant employment.

22.   The conditions is that relevant employer provides transport of any description in connection with the employment which is available to the relevant person for any part of the journey between his home and his work place or between his work place or between his work place and his home.

23.   The condition is that the relevant employer bears any part of the travelling costs arising from the relevant person travelling between his home and his work place or between his work place and his home in connection with that employment, and for the purposes of this paragraph he does not bear any part of that cost where he does no more than—

(a) make a payment to the relevant person which would fail to be taken into account in determining the amount of the relevant person’s net income;

(b) make a loan to the relevant person;

(c) pay to the relevant person an increased amount of remuneration,

to enable the relevant person to meet those costs himself.”