Paragraph 3 Exempt income: additional provisions relating to eligible housing costs

The additional provisions made by this paragraph shall have effect only for the purpose of calculating or estimating exempt income.

Subject to sub-paragraph (6), where the home of an absent parent or, as the case may be, a parent with care, is subject to a mortgage or charge and that parent F1is liable to make periodical payments to reduce the capital secured by that mortgage or charge of an amount provided for in accordance with the terms thereof, those amounts payable shall be eligible to be taken into account as the housing costs of that parent.

Where an absent parent or as the case may be a parent with care has entered into a loan for repairs or improvements of a kind referred to in paragraph 1(d) and that parent is liable to make periodical payments of an amount provided for in accordance with the terms of that loan to reduce the amount of that loan, those amounts payable shall be eligible to be taken into account as housing costs of that parent.

Subject to sub-paragraph (6), where the home of an absent parent or, as the case may be, a parent with care, is held under an agreement and F3certain amounts payable under that agreement are included as housing costs by virtue of paragraph 1 of this Schedule, F4any other amounts payable in accordance with that agreement by the parent in order either—

shall also be eligible to be taken into account as housing costs.

Where a policy of insurance has been obtained and retained for the purpose of discharging a mortgage or charge on the home of the parent in question, the amount of the F5premiums payable under that policy shall be eligible to be taken into account as a housing cost F6including for the avoidance of doubt such a policy of insurance whose purpose is to secure the payment of monies due under the mortgage or charge in the event of the unemployment, sickness or disability of the insured.

Where—

the amount of the premiums payable under that policy shall be eligible to be taken into account as a housing cost.

Where a policy of insurance has been obtained and retained for the purpose of discharging a mortgage or charge on the home of the parent in question and also for the purpose of accruing profits on the maturity of the policy, there shall be eligible to be taken into account as a housing cost—

Where a plan within the meaning of regulation 4 of the Personal Equity Plans Regulations 1989 has been obtained and retained for the purpose of discharging a mortgage or charge on the home of the parent in question and also for the purpose of accruing profits upon the realisation of the plan, there shall be eligible to be taken into account as a housing cost—

Where a personal pension plan F10derived from a personal pension scheme has been obtained and retained for the purpose of discharging a mortgage or charge on the home of the parent in question and also for the purpose of securing the payment of a pension to him, there shall be eligible to be taken into account as a housing cost 25 per centum of the contributions payable in respect of that personal pension plan.

For the purposes of sub-paragraphs (2) and (3), housing costs shall not include—