For regulation 28 (calculation of tariff income from capital) there shall be substituted the following regulation—

“28.

(1)

Where a resident’s capital calculated in accordance with this Part exceeds £10,000 it shall be treated as equivalent to a weekly income of £1 for each complete £250 in excess of £10,000 but not exceeding £16,000.

(2)

Notwithstanding paragraph (1), where any part of the excess is not a complete £250 that part shall be treated as equivalent to a weekly income of £1.

(3)

For the purposes of paragraph (1), capital includes any income treated as capital under regulations 22 and 34 (income treated as capital and liable relative payments) respectively.”.