The Child Support Departure Direction and Consequential Amendments Regulations (Northern Ireland) 1996

Assets capable of producing income or higher income

23.—(1) Subject to paragraphs (2) and (3), a case shall constitute a case for the purposes of paragraph 5(1) of Schedule 4B to the Order where—

(a) the Department is satisfied that any asset in which the non-applicant has a beneficial interest, or which he has the ability to control—

(i) is capable of being utilised to produce income but has not been so utilised;

(ii) has been invested in such a way that the income obtained from it is less than might reasonably be expected;

(iii) is a chose in action which has not been enforced where the Department is satisfied that such enforcement would be reasonable, or

(iv) has not been sold where the Department is satisfied that the sale of the asset would be reasonable;

(b) any asset has been transferred by the non-applicant to trustees and the non-applicant is a beneficiary of the trust so created; or

(c) any asset has become subject to a trust created by legal implication of which the non-applicant is a beneficiary.

(2) Paragraph (1) shall not apply where—

(a) the total value of any asset referred to in that paragraph does not exceed £10,000 after deduction of the amount owing under any mortgage or charge on that asset; or

(b) the Department is satisfied that any asset referred to in that paragraph is being retained by the non-applicant to be used for a purpose which the Department considers reasonable in all the circumstances of the case.

(3) No application may be made under this regulation where income support or income-based jobseeker’s allowance is paid to or in respect of the non-applicant.

(4) For the purposes of this regulation the term “asset” means—

(a) money, whether in cash or on deposit;

(b) a beneficial interest in land and rights in or over land;

(c) shares as defined in Article 2 of the Companies (Northern Ireland) Order 1986(1), stock, unit trusts, gilt edged securities as defined in paragraph 1 of Schedule 9 to the Taxation of Chargeable Gains Act 1979(2), and other similar financial instruments.

(5) For the purposes of paragraph (4) the term “asset” includes any asset falling within that paragraph which is located outside Northern Ireland.

(6) In this regulation—

(a) “stock” includes shares, debentures and any securities of the body concerned, whether or not constituting a charge on the assets of that body;

(b) “unit trust” means any trust established for the purpose, or having the effect of providing, for persons having funds available for investment, facilities for the participation by them as beneficiaries under the trust, in any profits or income arising from the acquisition, holding, management or disposal of any property whatsoever.

(1)

S.I. 1986/1032 (N.I. 6)

(2)

1979 c. 12