PART 6CALCULATION OF CAPITAL AND INCOME
CHAPTER 3UNEARNED INCOME
General
Unearned income calculated monthly73.
(1)
A person's unearned income is to be calculated as a monthly amount.
(2)
Where the period in respect of which a payment of income is made is not a month, an amount is to be calculated as the monthly equivalent, so for example—
(a)
weekly payments are multiplied by 52 and divided by 12;
(b)
four weekly payments are multiplied by 13 and divided 12;
(c)
three monthly payments are multiplied by 4 and divided by 12; and
(d)
annual payments are divided by 12.
F1(2A)
Where the period in respect of which unearned income is paid begins or ends during an assessment period the amount of unearned income for that assessment period is to be calculated as follows—
where N is the number of days in respect of which unearned income is paid that fall within the assessment period and M is the monthly amount referred to in paragraph (1) or, as the case may be, the monthly equivalent referred to in paragraph (2).
(3)
Where the amount of a person's unearned income fluctuates, the monthly equivalent is to be calculated—
(a)
where there is an identifiable cycle, over the duration of one such cycle; or
(b)
where there is no identifiable cycle, over three months or such other period as may, in the particular case, enable the monthly equivalent of the person's income to be determined more accurately.
(4)
This regulation does not apply to student income.