Regulation 89 Diminution of capitalI1
England, Wales and Scotland
Where in the case of recoverable excess benefits, in consequence of a misrepresentation or failure to disclose a material fact (in either case whether fraudulent or otherwise) as to a person’s capital, or an error, other than one to which regulation 84(2) (effect of official error) refers, as to the amount of a person’s capital, the excess benefits were in respect of a period (“the excess benefits period”) of more than 13 benefit weeks, the appropriate authority shall, for the purpose only of calculating the amount of the excess–
at the end of the first 13 benefit weeks of the excess benefits period, treat the amount of that capital as having been reduced by the amount of excess community charge benefits allowed during those 13 weeks;
at the end of each subsequent period of 13 benefit weeks, if any, of the excess benefits period, treat the amount of that capital as having been further reduced by the amount of excess community charge benefits allowed during the immediately preceding 13 benefit weeks.
Capital shall not be treated as reduced over any period other than 13 benefit weeks or in any circumstances other than those for which paragraph (1) provides.