The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995

Amendment of the Council Tax Benefit Regulations

2.—(1) The Council Tax benefit Regulations(1) shall be amended in accordance with the following paragraphs of this regulation.

(2) In regulation 2(1) (interpretation)—

(a) after the definition of “payment” there shall be inserted the following definition—

““pension fund holder” means with respect to a personal pension scheme or retirement annuity contract, the trustees, managers or scheme administrators, as the case may be, of the scheme or contract concerned;”;

(b) in the definition of “personal pension scheme” for the words “section 191 of the Administration Act 1992”there shall be substituted the words “section 1 of the Pension Schemes Act 1993(2)”;

(c) after the definition of “resident” there shall be inserted the following definition—

““retirement annuity contract” means a contract or trust scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988(3);”;

(3) In regulation 4C(4)(c)(i) (treatment of periods of absence from home)(4) for the word “Services” there shall be substituted the word “Service”.

(4) In regulation 22(11) (calculation of net profit of self-employed earners) the definition of “retirement annuity contract” shall be omitted.

(5) In regulation 26 (notional income)—

(a) in paragraph (2) for the words from “Except in the case” to “personal injury,” there shall be substituted the following words—

“Except in the case of—

(a) a discretionary trust;

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

(c) a personal pension scheme or retirement annuity contract where the claimant is aged under 60,”;

(b) after paragraph (2), there shall be inserted the following paragraphs—

“(2A) Where a person, aged not less than 60, is a member of, or a person deriving entitlement to a pension under, a personal pension scheme, or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract, and—

(a) in the case of a personal pension scheme, he fails to purchase an annuity with the funds available in that scheme where—

(i) he defers, in whole or in part, the payment of any income which would have been payable to him by his pension fund holder;

(ii) he fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid; or

(iii) income withdrawal is not available to him under that scheme; or

(b) in the case of a retirement annuity contract, he fails to purchase an annuity with the funds available under that contract,

the amount of any income foregone shall be treated as possessed by him, but only from the date on which it could be expected to be acquired were an application for it to be made.

(2B) The amount of any income foregone in a case to which either head (2A)(a)(i) or (ii) applies shall be the maximum amount of income which may be withdrawn from the fund and shall be determined by the appropriate authority which shall take account of information provided by the pension fund holder in accordance with regulation 63(5) (evidence and information)(5).

(2C) The amount of any income foregone in a case to which either head (2A)(a)(iii) or sub-paragraph (2A)(b) applies shall be the income that the claimant could have received without purchasing an annuity had the funds held under the relevant personal pension scheme or retirement annuity contract been held under a personal pension scheme where income withdrawal was available and shall be determined in the manner specified in paragraph (2B).”.

(6) In regulation 34(2) (notional capital) after sub-paragraph (c) there shall be inserted the word “or” and the following sub-paragraph shall be added—

“(d) a personal pension scheme or retirement annuity contract,”.

(7) In regulation 36 (capital jointly held) for the words from “to the whole beneficial interest” to the end of the regulation there shall be substituted the following words—

“to an equal share of the whole beneficial interest therein; and the value of that equal share shall be calculated by taking the value of the whole beneficial interest calculated in accordance with the foregoing provisions of this Chapter, as though—

(a) that interest is solely owned by the claimant; and

(b) in the case of a dwelling, none of the other joint owners occupies the dwelling concerned,

and dividing the same by the number of persons who have a beneficial interest in the capital in question.”.

(8) In regulation 63 (evidence and information) after paragraph (3) there shall be added the following paragraphs—

“(4) Where a claimant or any partner is aged not less than 60 and is a member of, or a person deriving entitlement to a pension under, a personal pension scheme, or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract, he shall where the appropriate authority so requires furnish the following information—

(a) the name and address of the pension fund holder;

(b) such other information including any reference or policy number as is needed to enable the personal pension scheme or retirement annuity contract to be identified.

(5) Where the pension fund holder receives from an appropriate authority a request for details concerning a personal pension scheme or retirement annuity contract relating to a person or any partner to whom paragraph (4) refers, the pension fund holder shall provide the appropriate authority with any information to which paragraph (6) refers.

(6) The information to which this paragraph refers is—

(a) where the purchase of an annuity under a personal pension scheme has been deferred, the amount of any income which is being withdrawn from the personal pension scheme;

(b) in the case of—

(i) a personal pension scheme where income withdrawal is available, the maximum amount of income which may be withdrawn from the scheme; or

(ii) a personal pension scheme where income withdrawal is not available, or a retirement annuity contract, the maximum amount of income which might be withdrawn from the fund if the fund were held under a personal pension scheme where income withdrawal was available,

• calculated by or on behalf of the pension fund holder by means of tables prepared from time to time by the Government Actuary which are appropriate for this purpose.”.

(9) In Schedule 1 (applicable amounts) in paragraph 13\(1)(b)(i) for the words “is incapable of work” there shall be substituted the words “is, or is treated as, incapable of work”.

(10) In Schedule 4 (sums to be disregarded in the calculation of income other than earnings)—

(a) paragraph 12 shall be omitted;

(b) in paragraph 51(6)—

(i) after the words “Benefits Act 1992”, there shall be inserted the words “or pension under the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983(7)”; and

(ii) after the words “that Act” there shall be inserted the words “or the rate of that pension under that Order”.

(11) In Schedule 5 (capital to be disregarded)—

(a) for paragraph 6 there shall be substituted the following paragraph—

“6.   Any future interest in property of any kind, other than land or premises in respect of which the claimant has granted a subsisting lease or tenancy, including sub-leases or sub-tenancies.”;

(b) in paragraph 27, for the words “for such period” to the end, there shall be substituted the words “for a period of 26 weeks from the date on which the claimant first takes steps to effect those repairs or alterations, or such longer periods as is necessary to enable those repairs or alterations to be carried out.”;

(c) after paragraph 30 there shall be inserted the following paragraph—

“30A.   The value of any funds held under a personal pension scheme or retirement annuity contract.”;

(d) in paragraph 31 at the end there shall be added the words “except where the claimant has a reversionary interest in the property in respect of which rent is due.”.

(1)

S.I. 1992/1814; relevant amending instruments 1993/688, 963, 1249, 1994/578, 2137, 1995/560, 625 and 626.

(2)

1993 c. 48.

(3)

1988 c. 1.

(4)

Regulation 4C was inserted by S.I. 1995/625.

(5)

Paragraph (5) is added in regulation 63 by paragraph (8) of this regulation.

(6)

Paragraph 51 was added to Schedule 4 by S.I. 1994/578.

(7)

S.I. 1983/883.