PART 6Assessment of income and capital

SECTION 2

Income

Calculation of weekly income33

1

Except where paragraphs (2) and (4) apply, for the purposes of calculating the weekly income of the claimant, where the period in respect of which a payment is made—

a

does not exceed a week, the whole of that payment shall be included in the claimant's weekly income;

b

exceeds a week, the amount to be included in the claimant's weekly income shall be determined—

i

in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;

ii

in a case where that period is three months, by multiplying the amount of the payment by 4 and dividing the product by 52;

iii

in a case where that period is a year, by dividing the amount of the payment by 52;

iv

in any other case, by multiplying the amount of the payment by 7 and dividing the product by the number of days in the period in respect of which it is made.

2

Where—

a

the claimant's regular pattern of work is such that he does not work the same hours every week; or

b

the amount of the claimant's income fluctuates and has changed more than once,

the weekly amount of that claimant's income shall be determined—

i

if, in a case to which sub-paragraph (a) applies, there is a recognised cycle of work, by reference to his average weekly income over the period of the complete cycle (including, where the cycle involves periods in which the claimant does no work, those periods but disregarding any other absences); or

ii

in any other case, on the basis of—

aa

the last two payments if those payments are one month or more apart;

bb

the last four payments if the last two payments are less than one month apart; or

cc

calculating or estimating such other payments as may, in the particular circumstances of the case, enable the claimant's average weekly income to be determined more accurately.

3

For the purposes of paragraph (2)(b) the last payments are the last payments before the date the claim was made or treated as made or, if there is a subsequent supersession under paragraph 4 of Schedule 7 to the Child Support, Pensions and Social Security Act 2000 F1, the last payments before the date of the supersession.

4

If a claimant is entitled to receive a payment to which paragraph (5) applies, the amount of that payment shall be treated as if made in respect of a period of a year.

5

This paragraph applies to—

F4a

royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark;

F5b

any payment in respect of any —

i

book registered under the Public Lending Right Scheme 1982 F2; or

ii

work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982; or

c

any payment which is made on an occasional basis.

6

The period under which any benefit under the benefit Acts is to be taken into account shall be the period in respect of which that benefit is payable.

7

Where payments are made in a currency other than Sterling, the value of the payment shall be determined by taking the Sterling equivalent on the date the payment is made.

8

The sums specified in Schedule 4 shall be disregarded in calculating—

a

the claimant's earnings; and

F6b

any amount to which paragraph (5) applies where the claimant is the first owner of the copyright, design, patent or trademark, or an original contributor to the book or work referred to in paragraph (5)(b).

F78A

For the purpose of paragraph (8)(b), and for that purpose only, the amounts specified in paragraph (5) shall be treated as though they were earnings.

9

Income specified in Schedule 5 is to be disregarded in the calculation of a claimant's income.

F310

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11

Schedule 6 shall have effect so that—

a

the capital specified in Part 1 shall be disregarded for the purpose of determining a claimant's income; and

b

the capital specified in Part 2 shall be disregarded for the purpose of determining a claimant's income under regulation 29(2) (weekly income from capital).

12

In the case of any income taken into account for the purpose of calculating a person's income, there shall be disregarded any amount payable by way of tax.

F313

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F314

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