Any capital of a child or young person payable by instalments which are outstanding at the date of claim shall, if the aggregate of the instalments outstanding and the amount of that child's or young person's other capital calculated in accordance with Chapter VI of this Part in like manner as for the claimantF1... would exceed £3,000, be treated as income.

Where the income of a child or young person, other than income consisting of payments of maintenance whether under a court order or not, calculated in accordance with F2Chapters I to V of this Part exceeds the sum specified as a credit for that child or young person in Schedule 4 and regulation 46(5) (sum for child or young person who has income in excess to be nil) applies , that income shall not be treated as income of the claimant.

Where the capital of a child or young person, if calculated in accordance with Chapter VI of this Part in like manner as for the claimant, F3except as provided in paragraph (1), would exceed £3,000, any income of that child or young person F4, other than income consisting of any payment of maintenance whether under a court order or not, shall not be treated as income of the claimant.

Any income of a child or young person which is to be disregarded under Schedule 2 shall be disregarded in such manner as to produce the result most favourable to the claimant.