Quarterly diminution of capital
14.—(1) For the purposes of section 53(1) of the Act, where income support or family credit has been overpaid in consequence of a misrepresentation as to the capital a claimant possesses or a failure to disclose its existence, the adjudicating authority shall treat that capital as having been reduced at the end of each quarter from the start of the overpayment period by the amount overpaid by way of income support or family credit within that quarter.
(2) Capital shall not be treated as reduced over any period other than a quarter or in any circumstances other than those for which paragraph (1) provides.
(3) In this regulation—
“a quarter” means a period of 13 weeks starting with the first day on which the overpayment period began and ending on the 90th consecutive day thereafter;
“overpayment period” is a period during which income support or family credit is overpaid in consequence of a misrepresentation as to capital or a failure to disclose its existence.