C4PART VINCOME AND CAPITAL

Annotations:
Modifications etc. (not altering text)

C4C3CHAPTER VIcapital

Annotations:
Modifications etc. (not altering text)

Notional capitalI151

1

A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to income support or increasing the amount of that benefit F5except–

a

where that capital is derived from a payment made in consequence of any personal injury and is placed on trust for the benefit of the claimant; or

b

to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 51A (diminishing notional capital rule)F12or

F36c

any sum to which paragraph 44(2)(a) of Schedule 10 (capital to be disregarded) applies which is administered in the way referred to in paragraph 44(1)(a);

d

any sum to which paragraph 45(a) of Schedule 10 refers.

C12

Except in the case of—

a

a discretionary trust;

b

a trust derived from a payment made in consequence of a personal injury; or

C5c

any loan which would be obtainable only if secured against capital disregarded under Schedule 10, F9or

d

a personal pension scheme F38...F11or

F33da

an occupational pension scheme F34or a payment made by the Board of the Pension Protection Fund where the claimant F44has not attained the qualifying age for state pension credit; or

F37e

any sum to which paragraph 44(2)(a) of Schedule 10 (capital to be disregarded) applies which is administered in a way referred to in paragraph 44(1)(a); or

f

any sum to which paragraph 45(a) of Schedule 10 refers,

any capital which would become available to the claimant upon application being made but which has not been acquired by him shall be treated as possessed by him but only from the date on which F1it could be expected to be acquired were an application made

F33

F13Any payment of capital, other than a payment of capital specified in paragraph (3A), made—

a

to a third party in respect of a single claimant or F22in respect of a member of the familyF22his partner (but not a member of the third party’s family) shall be treated—

i

in a case where that payment is derived from a payment of any benefit under the benefit Acts, F28a payment from the Armed Forces and Reserve Forces Compensation Scheme, a war disablement pensionF10, war widow’s pension F18or war widower’s pension or a pension payable to a person as a F30widow, widower or surviving civil partner under F41... any power of Her Majesty otherwise than under an enactment to make provision about pensions for or in respect of persons who have been disabled or who have died in consequence of service as members of the armed forces of the Crown, as possessed by that single claimant, if it is paid to him, F21or by that member if it is paid to any member of the familyF21or by his partner, if it is paid to his partner;

F16ia

in a case where that payment is a payment of an occupational pension F32, a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund, as possessed by that single claimant or, as the case may be, by F23that memberF23the claimant’s partner;

C2ii

in any other case, as possessed by that single claimant F24or by that memberF24or his partner to the extent that it is used for the food, ordinary clothing or footwear, household fuel, rent F29... for which housing benefit F19is payable orF6... any housing costs to the extent that they are met under regulation 17(1)(e) and 18(1)(f) (housing costs) F20..., of that single claimant or, as the case may be, F24of any member of that familyF24of his partnerF7, or is used for any F8council tax or water charges for which that claimant or F24member is liableF24partner is liable;

b

F25to a single claimant or a member of the family in respect of a third party (but not in respect of another member of the family) shall be treated as possessed by that single claimant or, as the case may be, that member of the family to the extent that it is kept or used by him or used by or on behalf of any member of the family.

F25to a single claimant or his partner in respect of a third party (but not in respect of another member of his family) shall be treated as possessed by that single claimant or, as the case may be, his partner, to the extent that it is kept or used by him or used by or on behalf of his partner.

F143A

Paragraph (3) shall not apply in respect of a payment of capital made—

a

under F43or by the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust F42, MFET LimitedF27, the Independent Living F40Fund (2006)F31, the Skipton Fund F46, the Caxton FoundationF48, the Scottish Infected Blood Support Scheme or the London Bombings Relief Charitable Fund;

b

pursuant to section 2 of the Employment and Training Act 1973 in respect of a person’s participation—

i

in an employment programme specified in regulation 75(1)(a)(ii) of the Jobseeker’s Allowance Regulations 1996;

ii

in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations; or

F17iia

in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of those RegulationsF39...; or

iii

in a qualifying course within the meaning specified in regulation 17A(7) of those Regulations.

F45ba

in respect of a person’s participation in F47a scheme prescribed in regulation 3 of the Jobseeker's Allowance (Schemes for Assisting Persons to Obtain Employment) Regulations 2013 or the Mandatory Work Activity Scheme;

F15c

under an occupational pension scheme F35, in respect of a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund where—

i

a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, in Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person’s estate under section 41 of the Solicitors (Scotland) Act 1980;

ii

the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

iii

the person referred to in (i) and F26any member of his familyF26his partner (if any) does not possess, or is not treated as possessing, any other income apart from that payment.

4

Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he shall be treated as if he were such sole owner or partner and in such a case—

a

the value of his holding in that company shall, notwithstanding regulation 46 (calculation of capital), be disregarded; and

b

he shall, subject to paragraph (5), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Chapter shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.

5

For so long as the claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (4) shall be disregarded.

6

Where a claimant is treated as possessing capital under any of paragraphs (1) to (4), the foregoing provisions of this Chapter shall apply for the purposes of calculating its amount as if it were actual capital which he does possess.

F27

For the avoidance of doubt a claimant is to be treated as possessing capital under paragraph (1) only if the capital of which he has deprived himself is actual capital.

F48

In paragraph (3) the expression “ordinary clothing or footwear” means clothing or footwear for normal daily use, but does not include school uniforms, or clothing or footwear used solely for sporting activities.