SCHEDULE 6Capital to be disregarded

F114A

1

Any payment made to the claimant or the claimant’s partner in consequence of any personal injury to the claimant or, as the case may be, the claimant’s partner.

2

But sub-paragraph (1)—

a

applies only for the period of 52 weeks beginning with the day on which the claimant first receives any payment in consequence of that personal injury;

b

does not apply to any subsequent payment made to him in consequence of that injury (whether it is made by the same person or another);

c

ceases to apply to the payment or any part of the payment from the day on which the claimant no longer possesses it;

d

does not apply to any payment from a trust where the funds of the trust are derived from a payment made in consequence of any personal injury to the claimant.

3

For the purposes of sub-paragraph (2)(c), the circumstances in which a claimant no longer possesses a payment or a part of it include where the claimant has used a payment or part of it to purchase an asset.

4

References in sub-paragraphs (2) and (3) to the claimant are to be construed as including references to his partner (where applicable).