The Income Support (General) Amendment No. 3 Regulations 1990

Amendment of Schedule 3 to the General Regulations

9.  In Schedule 3 to the General Regulations (housing costs)–

(a) in paragraph 7–

(i) for sub-paragraph (4) there shall be substituted the following sub-paragraphs–

“(4) Subject to sub-paragraph (3A), the following provisions of this paragraph, and paragraph 6, the weekly amount of eligible interest shall be the amount calculated by the formula–

where–

A

=

the gross annual interest calculated by the formula C × D;

B

=

the difference between 100% and the basic rate (expressed as a percentage) of income tax within the meaning of section 832(1) of the Income and Corporation Taxes Act 1988(1) for the year of assessment in which the payment of interest becomes due;

C

=

the amount of the loan which from time to time is outstanding and in respect of which eligible interest is payable; and

D

=

the rate of interest chargeable on that loan or any part thereof expressed as a percentage.

(4A) Where section 369 of the Income and Corporation Taxes Act 1988 (mortgage interest payable under deduction of tax) does not apply to the interest on a loan or to part of a loan, sub-paragraph (4) shall apply in respect of that loan or part as if it contained no reference to factor B.

(4B) Where the eligible interest is charged at more than one rate, the amount of that interest shall be calculated by making a separate calculation under sub-paragraph (4) in respect of each of those rates of interest and aggregating the results.

(4C) Where evidence supplied by the lender shows that the eligible interest charged is different from that calculated under sub-paragraph (4), the weekly amount of eligible interest shall be calculated by reference to the interest charged.”;

(ii) in sub-paragraph (6) for the words following head (b) there shall be substituted–

“or

(c) where, under the terms or conditions on which a loan has been made, for an initial period of at least 2 years the whole or part of the interest on that loan is not, or has not been, payable;

and, where either head (a) or (b) applies only to the extent that the arrears do not exceed 50 per cent of the eligible interest that otherwise would have been payable during the period in question and where head (c) applies only to the extent that interest is deferred and accrues further interest under the terms or conditions on which the loan is made.”;

(iii) after sub-paragraph (6) there shall be added the following sub-paragraph–

“(6A) For the purposes of sub-paragraph (6), in determining whether interest is, or is not, payable regard shall not be had to any obligation to pay interest which, under the terms or conditions on which a loan has been granted, is deferred for an initial period of at least 2 years.”;

(b) in paragraph 9, after sub-paragraph (2)(b) there shall be inserted the following head–

“(c) where the costs are inclusive of any amount in respect of repairs or improvements within the meaning of paragraph 8(3), any amount attribu table to those repairs and improvements.”;

(c) in paragraph 10–

(i) in sub-paragraph (3), for the reference “to (6)” there shall be substituted the reference “to (6A).”;

(ii) in sub-paragraph (4), the words “Subject to sub-paragraphs (5) and (6),” shall be omitted; for the words “and shall be restricted and the excess not allowed, if and to the extent that” there shall be substituted the word “where–”; and at the end there shall be added the words–

“but

for the purposes of this sub-paragraph no regard shall be had to the capital value of the dwelling occupied as the home.”;

(iii) after sub-paragraph (6) there shall be inserted the following sub-paragraph–

“(6A) Where sub-paragraph (4) applies the amounts to be met shall be restricted and the excess over the amounts which the claimant would need to obtain suitable alternative accommodation shall not be allowed.”;

(d) in paragraph 11–

(i) for sub-paragraph (2) there shall be substituted the following sub-paragraph–

“(2) In the case of a non-dependant aged 18 or more to whom sub-paragraph (1)(a) applies because he is in remunerative work, where the claimant satisfies the adjudication officer that the non-dependant’s gross weekly income is less than £56.05, the deduction to be made under this paragraph shall be the deduction specified in sub-paragraph (1)(b).”;

(ii) in sub-paragraph (7)(c), after the words “period of study” there shall be inserted the words “or, if he is not in remunerative work, during a recognised summer vacation appropriate to his course;”.

(1)

1988 c. 1.