PART IVINCOME AND CAPITAL
CHAPTER VICAPITAL
F1Diminishing notional capital rule34A
1
Where a claimant is treated as possessing capital under regulation 34(1) (notional capital), the amount which he is treated as possessing—
a
in the case of a benefit week which is subsequent to—
i
the relevant week in respect of which the conditions set out in paragraph (2) are satisfied; or
ii
a week which follows that relevant week and which satisfies those conditions,
shall be reduced by an amount determined under paragraph (3);
b
in the case of a benefit week in respect of which paragraph (1)(a) does not apply but where—
i
that week is a week subsequent to the relevant week, and
ii
that relevant week is a week in which the condition in paragraph (4) is satisfied,
shall be reduced by the amount determined under paragraph (4).
2
This paragraph applies to a benefit week where the claimant satisfies the conditions that—
a
he is entitled to F11working families' tax credit; and
b
but for regulation 34(1), he would have been entitled to an additional amount of F11working families' tax credit in that benefit week.
3
In a case to which paragraph (2) applies, the amount of the reduction for the purposes of paragraph (1)(a) shall be equal to the aggregate of—
a
the additional amount of F12working families' tax credit to which the claimant would have been entitled; and
F2b
if the claimant would, but for regulation 43(1) of the Housing Benefit (General) Regulations 1987 (notional capital), have been entitled to housing benefit or to an additional amount of housing benefit in respect of the benefit week in which the date of the last claim for F12working families' tax credit falls, the amount (if any) which is equal to–
i
in a case where no housing benefit is payable, the amount to which he would have been entitled, or
ii
in any other case, the amount equal to the additional amount of housing benefit to which he would have been entitled; and
c
if the claimant would, but for regulation 33(1) of the Community Charge Benefits (General) Regulations 1989 (notional capital) have been entitled to community charge benefit or to an additional amount of community charge benefit in respect of the benefit week in which the date of the last claim for F12working families' tax credit falls, the amount (if any) which is equal to–
i
in a case where no community charge benefit is payable, the amount to which he would have been entitled, or
ii
in any other case, the amount equal to the additional amount of community charge benefit to which he would have been F4entitled; and
F5d
if the claimant would, but for regulation 34(1) of the Council Tax Benefit (General) Regulations 1992 (notional capital), have been entitled to council tax benefit or to an additional amount of council tax benefit in respect of the benefit week in which the date of the last claim for F12working families' tax credit falls, the amount (if any) which is equal to—
i
in a case where no council tax benefit is payable, the amount to which he would have been entitled, or
ii
in any other case, the amount equal to the additional amount of council tax benefit to which he would have been entitled.
4
Subject to paragraph (5), for the purposes of paragraph (1)(b) the condition is that the claimant would have been entitled to F13working families' tax credit in the relevant week but for regulation 34(1) and in such a case the amount shall be equal to the aggregate of—
a
the amount of F14working families' tax credit to which the claimant would have been entitled in the relevant week but for regulation 34(1); and
F3b
if the claimant would, but for regulation 43(1) of the Housing Benefit (General) Regulations 1987 have been entitled to housing benefit or to an additional amount of housing benefit in respect of the benefit week in which the first day of the relevant week falls, the amount (if any) which is equal to–
i
in a case where no housing benefit is payable, the amount to which he would have been entitled, or
ii
in any other case, the amount equal to the additional amount of housing benefit to which he would have been entitled; and
c
if the claimant would, but for regulation 33(1) of the Community Charge Benefits (General) Regulations 1989 have been entitled to community charge benefit or to an additional amount of community charge benefit in respect of the benefit week in which the first day of the relevant week falls, the amount (if any) which is equal to–
i
in a case where no community charge benefit is payable, the amount to which he would have been entitled, or
ii
in any other case, the amount equal to the additional amount of community charge benefit to which he would have been F6entitled; and
F7d
if the claimant would, but for regulation 34(1) of the Council Tax Benefit (General) Regulations 1992 (notional capital), have been entitled to council tax benefit or to an additional amount of council tax benefit in respect of the benefit week in which the first day of the relevant week falls, the amount (if any) which is equal to—
i
in a case where no council tax benefit is payable, the amount to which he would have been entitled, or
ii
in any other case, the amount equal to the additional amount of council tax benefit to which he would have been entitled.
5
The amount determined under paragraph (4) shall be re-determined under that paragraph if the claimant makes a further claim for F15working families' tax credit and the conditions in paragraph (6) are satisfied, and in such a case—
a
sub-paragraphs (a), (b) and (c) of paragraph (4) shall apply as if for the words “relevant week” there were substituted the words “relevant subsequent week”; and
b
subject to paragraph (7), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.
6
The conditions are that—
a
a further claim is made 22 or more weeks after—
i
the first day of the relevant week;
ii
in a case where there has been at least one re-determination in accordance with paragraph (5), the first day of the relevant subsequent week which last occurred;
whichever last occurred; and
b
the claimant would have been entitled to F16working families' tax credit but for regulation 34(1).
7
The amount as re-determined pursuant to paragraph (5) shall not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount shall continue to have effect.
8
For the purposes of this regulation—
a
“benefit week” has the meaning prescribed in regulations 16 (date of entitlement under an award) and 27 (F17working families' tax credit) of the Social Security (Claims and Payments) Regulations 1987 except where it appears in paragraphs F8(3)(b), (c) and (d) and (4)(b), (c) and (d) where it has the meaning prescribed in regulation 2(1) of the Housing Benefit (General) Regulations F91987 (interpretation), regulation 2(1) of the Community Charge Benefits (General) Regulations 1989 (interpretation) F10or regulation 2(1) of the Council Tax Benefit (General) Regulations 1992 (interpretation) as the case may be;
b
“relevant week” means the benefit week in which the capital in question of which the claimant has deprived himself within the meaning of regulation 34(1)—
i
was for the first time taken into account for the purpose of determining his entitlement to F17working families' tax credit; or
ii
was taken into account on a subsequent occasion for that purpose other than in respect of either a benefit week to which paragraph (2) applies or a further claim to which paragraph (5) applies;
and, where more than one benefit week is identified by reference to heads (i) and (ii) of this sub-paragraph, the later or latest such benefit week;
c
“relevant subsequent week” means the benefit week in which any award of F17working families' tax credit in respect of the further claim referred to in paragraph (6)(a) would, but for regulation 34(1), have commenced, but it shall not be earlier than the twenty-seventh week after the week in which the existing amount took effect.