46.—(1) The whole of a person's capital is to be taken into account unless—
(a)it is to be treated as income (see paragraphs (3) and (4)), or
(b)it is to be disregarded (see regulation 48).
(2) A person's personal possessions are not to be treated as capital.
(3) Subject to paragraph (4), any sums that are paid regularly and by reference to a period, for example payments under an annuity, are to be treated as income even if they would, apart from this provision, be regarded, as capital or as having a capital element.
(4) Where capital is payable by instalments, each payment of an instalment is to be treated as income if the amount outstanding, combined with any other capital of the person (and, if the person is a member of a couple the other member), exceeds £16,000, but otherwise such payments are to be treated as capital.