Regulation 34 Notional CapitalI1

England, Wales and Scotland

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg. 34(2)(d) words inserted by Social Security 2005 reg. 4(3)
reg. 34(3A)(a) words substituted by Income-related Benefits 2005 reg. 4(3)
reg. 34(3A)(b)(iia) inserted by Social Security Amendment (New Deal) 2001 reg. 15(8)(9)(a)
reg. 34(3A)(a) words substituted by Social Security 2004 reg. 3(1)(2)(c)
reg. 34(2) substituted by Social Security (Housing Benefit, Council Tax Benefit, State Pension Credit and Miscellaneous Amendments) 2004 reg. 3(2)(13)
reg. 34(2)(f)(g) and word inserted by Income-related Benefits and Jobseeker’s Allowance (Working Tax Credit and Child Tax Credit) 2002 Sch. 3 para. 8
reg. 34(3)(za) inserted by Social Security Amendment (Notional Income and Capital) 1999 reg. 2(2)(a)
reg. 34(3)(a) words inserted by Social Security Amendment (Notional Income and Capital) 1999 reg. 2(2)(b)
reg. 34(3A)(c) added by Social Security Amendment (Notional Income and Capital) 1999 reg. 2(3)(a)
reg. 34(3A) modified (temp.) by Social Security (New Deal Pilot) 1999 reg. 15(2)(3)
reg. 34(3A) modified (temp. until 27.11.2001) by Social Security (New Deal Pilot) 2000 reg. 15(2)(3)(a)
reg. 34(3A) modified (temp.) by Social Security (New Deal Pilot) 1998 reg. 15(2)(3)
reg. 34(3) words substituted by Housing Benefit and Council Tax Benefit Amendment (New Deal) 1998 reg. 3(1)(a)
reg. 34(3A) inserted by Housing Benefit and Council Tax Benefit Amendment (New Deal) 1998 reg. 3(1)(b)
reg. 34(2)(e) added by Income-related Benefits and Jobseeker’s Allowance 1997 reg. 7(2)(a)
reg. 34(3) words inserted by Social Security Amendment (New Deal) 1997 reg. 17(5)(6)(a)
reg. 34(2)(d) added by Income-related Benefits Schemes and Social Security (Claims and Payments) 1995 reg. 2(6)
reg.34 modified by Social Security (New Deal Pilot) 2000 reg 15(2)(3)(a)
reg.34 amended by Social Security Amendment (Notional Income and Capital) 1999 reg.2(2)
reg.34 amended by Social Security Amendment (Notional Income and Capital) 1999 reg.2(3) (a)

(1)

A claimant shall be treated as possessing capital of which he has deprived himself for the purposes of securing entitlement to council tax benefit or increasing the amount of such benefit except to the extent that that capital is reduced in accordance with regulation 35 (diminishing notional capital rule).

(2)

Except in the case of—

(a)

a discretionary trust; or

(b)

a trust derived from a payment made in consequence of a personal injury; or

(c)

any loan which would be obtained only if secured against capital disregarded under Schedule 5,

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.

(3)

Any payment of capital, other than a payment of capital made under the Trusts, the Fund F1, the Eileen Trust or F2the Independent Living Funds, made—

(a)

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, household fuel or, F3rent of that single claimant or, as the case may be, of any member of that family or is used for any council tax, or water charges for which that claimant or member is liable;

(b)

to a single claimant or 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.

(4)

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—

(a)

the value of his holding in that company shall, notwithstanding regulation 29 (calculation of capital) be disregarded; and

(b)

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.

(5)

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.

(6)

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.

(7)

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. 34(3) inserted (14.5.1993) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1993 (S.I. 1993/1249), regs. 1(1)(a), 6(3)(c)
F2: Words in reg. 34(3) substituted (22.4.1993) by The Social Security Benefits (Miscellaneous Amendments) (No. 2) Regulations 1993 (S.I. 1993/963), regs. 1, 5(3)(4)
F3: Word in reg. 34(3) substituted (1.4.1993 immediately after art. 20 of S.I. 1993/349 comes into force) by The Council Tax Benefit (General) Amendment Regulations 1993 (S.I. 1993/688), regs. 1(1), 10

Commencement

I1: Reg. 34 in force at 1.4.1993, see reg. 1(b)