Regulation 23 Assets capable of producing income or higher income

(1)

Subject to paragraphs (2) to (4), 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 legal estate or 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; or

(iv)

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 an implied resulting or contructive trust 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.

(3)

No application may be made under this regulation where income support is paid to or in respect of the non-applicant.

(4)

For the purposes of this regulation the term “asset” means—

(a)

money, whether in cash or on deposit;

(b)

any asset used in the course of a trade or business carried on—

(i)

by the non-applicant as a sole trader or in partnership; or

(ii)

by a close company within the meaning of section 414 and 415 of the Income and Corporation Taxes Act 1988 in which the non-applicant is a participator;

(c)

a legal estate or equitable interest in land and rights in or over land;

(d)

shares as defined in section 455 of the Companies Act 1948^f1, stock and unit trusts as defined in section 6 of the Charging Orders Act 1979^f2, gilt edged securities as defined in paragraph 1 of Schedule 9 to the Taxation of Chargeable Gains Act 1979^f3, 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.

Annotations

Footnotes

f1: 1948 c. 38.
f2: 1979 c. 53.
f3: 1979 c. 12.