Regulation 33 Notional CapitalI1
England, Wales and Scotland
A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to community charge benefits or increasing the amount of such benefits F1except to the extent that that capital is reduced in accordance with regulation 33A (diminishing notional capital rule).
Except in the case of–
a discretionary trust; or
a trust derived from a payment made in consequence of a personal injury; or
any loan which would be obtained only if secured against capital disregarded under Schedule 4,
any capital which would become available to the claimant upon application being made, but which has not been acquired by him, shall be treated as possessed by him but only from the date on which it could be expected to be acquired were an application made.
Any payment of capital, other than a payment of capital made under the Macfarlane Trust F2, the Macfarlane (Special Payments) Trust F3, the Macfarlane (Special Payments) (No. 2) Trust F4, the Fund or Independent Living Fund, made–
to a third party in respect of a single claimant or in respect of a member of the family (but not a member of the third party’s family) shall be treated as possessed by that single claimant or by that member to the extent that it is used for the food, ordinary clothing or footwear, F5household fuel or eligible rent to which regulation 10 of the Housing Benefit (General) Regulations 1987 refers, of that single claimant or, as the case may be, of any member of that family or is used for any personal community charge F6, collective community charge contribution or water charges for which that claimant or member is liable;
to a single claimant or to a member of the family in respect of a third party (but not in respect of another member of that family) shall be treated as possessed by that single claimant or, as the case may be, that member of the family to the extent that it is kept or used by him by or on behalf of any member of the family.
Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he may be treated as if he were such sole owner or partner and in such a case–
the value of his holding in that company shall, notwithstanding regulation 28 (calculation of capital) be disregarded; and
he shall, subject to paragraph (5), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Chapter shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.
For so long as the claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (4) shall be disregarded.
Where a claimant is treated as possessing capital under any of paragraphs (1) to (3) the foregoing provisions of this Chapter shall apply for the purposes of calculating its amount as if it were actual capital which he does possess.
In paragraph (3) the expression “ordinary clothing or footwear” means clothing or footwear for normal daily use but does not include school uniforms, or clothing or footwear used solely for sporting activities.
Annotations
Textual amendments
- F1
Words in reg. 33(1) added (1.10.1990) by The Community Charge Benefits (General) Amendment (No. 3) Regulations 1990 (S.I. 1990/1773), regs. 1(1), 4(a)
- F2
Words in reg. 33(3) inserted (1.4.1990) by The Community Charge Benefits (General) Amendment Regulations 1990 (S.I. 1990/834), regs. 1(1), 7
- F3
Words in reg. 33(3) inserted (11.5.1991) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1991 (S.I. 1991/1175), regs. 1(1), 2(5)
- F4
Words in reg. 33(3) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 2(5)
- F5
Words in reg. 33(3)(a) substituted (1.10.1990) by The Community Charge Benefits (General) Amendment (No. 3) Regulations 1990 (S.I. 1990/1773), regs. 1(1), 4(b)(i)
- F6
Words in reg. 33(3)(a) substituted (1.10.1990) by The Community Charge Benefits (General) Amendment (No. 3) Regulations 1990 (S.I. 1990/1773), regs. 1(1), 4(b)(ii)