# The Child Support Departure Direction and Consequential Amendments Regulations 1996, Regulation 23: Assets capable of producing income or higher income

Extent: E+W+S

(1) Subject to paragraphs (2) and (3), a case shall constitute a case for the purposes of paragraph 5(1) of Schedule 4B to the Act where—
(a) the Secretary of State is satisfied that any asset in which the non-applicant has a beneficial interest, or which he has the ability to control—
(i) is capable of being utilised to produce income but has not been so utilised;
(ii) has been invested in such a way that the income obtained from it is less than might reasonably be expected;
(iii) is a chose in action which has not been enforced where the Secretary of State is satisfied that such enforcement would be reasonable;
(iv) in Scotland, is monies due or an obligation owed, whether immediately payable or otherwise and whether the payment or obligation is secured or not and the Secretary of State is satisfied that requiring payment of the monies or the implementation of the obligation would be reasonable; or
(v) has not been sold where the Secretary of State is satisfied that the sale of the asset would be reasonable;
(b) any asset has been transferred by the non-applicant to trustees and the non-applicant is a beneficiary of the trust so created; or
(c) any asset has become subject to a trust created by legal implication of which the non-applicant is a beneficiary.
(2) Paragraph (1) shall not apply where—
(a) the total value of the asset or assets referred to in that paragraph does not exceed £10,000.00 after deduction of the amount owing under any mortgage or charge on that asset; or
(b) the Secretary of State is satisfied that any asset referred to in that paragraph is being retained by the non-applicant to be used for a purpose which the Secretary of State considers reasonable in all the circumstances of the case; or
(c) if the non-applicant were a claimant, paragraph 64 of Schedule 10 to the Income Support (General) Regulations 1987 (treatment of relevant trust payments) would apply to the asset referred to in that paragraph.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) For the purposes of this regulation the term “asset" means—
(a) money, whether in cash or on deposit;
(b) a beneficial interest in land and rights in or over land;
(c) shares as defined in section 744 of the Companies Act 1985 , stock and unit trusts as defined in section 6 of the Charging Orders Act 1979 , gilt edged securities as defined in paragraph 1 of Schedule 2 to the Capital Gains Tax Act 1979 , and other similar financial instruments.
(5) For the purposes of paragraph (4) the term “asset" includes any asset falling within that paragraph which is located outside Great Britain.

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Source: https://www.legislation.gov.uk/uksi/1996/2907/regulation/23 (the official version)
Page: https://openlegislation.uk/child-support-departure-direction-and-consequential-amendments-regulations-1996/regulation-23
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.