PART VINCOME AND CAPITAL

CHAPTER VIcapital

Income treated as capital48.

(1)

Any F1... bounty derived from employment to which paragraph 7 of Schedule 8 applies F2and paid at intervals of at least one year shall be treated as capital.

(2)

Except in the case of an amount to which section 23(5) (a) (ii) of the Act (refund of tax in trade disputes cases) F3or regulation 41(4) (capital treated as income) applies, any amount by way of a refund of income tax deducted from profits or emoluments chargeable to income tax under Schedule D or E shall be treated as capital.

(3)

Any holiday pay which is not earnings under regulation 35(1) (d) (earnings of employed earners) shall be treated as capital.

(4)

Except any income derived from capital disregarded under paragraph 1, 2, 4, 6, F412 F5, 25 to 28, 44 or 45 of Schedule 10, any income derived from capital shall be treated as capital but only from the date it is normally due to be credited to the claimant's account.

(5)

Subject to paragraph (6), in the case of employment as an employed earner, any advance of earnings or any loan made by the claimant's employer shall be treated as capital.

F6(6)

Paragraph (5) shall not apply to a person to whom section 23 of the Act (trade disputes) applies or in respect of whom section 20(3) of the Act (conditions of entitlement to income support) has effect as modified by section 23A(b) (effect of return to work).

(7)

Any payment under section 30 of the Prison Act 1952 F7 (payments for discharged prisoners) or allowance under section 17 of the Prisons (Scotland) Act 1952 F8 (allowances to prisoners on discharge) shall be treated as capital.

F9(8)

F10Any payment made by a local authority, which represents arrears of payments under—

(a)

paragraph 15 of Schedule 1 to the Children Act 1989 (power of a local authority to make contributions to a person with whom a child lives as a result of a residence order); or

(b)

section 34(6) or as the case may be, section 50 of the Children Act 1975 (payments towards maintenance for children),

shall be treated as capital.

(8A)

F11Any payment made by an authority, as defined in Article 2 of the Children Order which represents arrears of payments under Article 15 of, and paragraph 17 of Schedule 1 to, that Order (contribution by an authority to child’s maintenance), shall be treated as capital.

F12(9)

Any charitable or voluntary payment which is not made or not due to be made at regular intervals, other than one to which paragraph (10) applies, shall be treated as capital.

F12(10)

This paragraph applies to a payment—

(a)

which is made to a person to whom section 23 of the Act (trade disputes) applies or in respect of whom section 20(3) of the Act (conditions of entitlement to income support) has effect as modified by section 23A(b) of the Act (effect of return to work) F13or to a member of the family F13or to the partner of such a person;

(b)

F14to which regulation 44(2) (modification in respect of children and young persons) applies; or

(c)

which is made under F15or by the Macfarlane Trust F16, the Macfarlane (Special Payments) Trust F17, the Macfarlane (Special Payments) (No. 2) Trust F18, the Fund F19, the Eileen Trust F20, MFET Limited F21, the Skipton Fund, the Caxton Foundation F22, the Scottish Infected Blood Support Scheme F23, an approved blood scheme F24, the London Emergencies Trust, the We Love Manchester Emergency Fund or F25the Independent Living F26Fund (2006).

F27(11)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F28(12)

Any arrears of subsistence allowance which are paid to a claimant as a lump sum shall be treated as capital.