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Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Rules)

These Rules determine how payments of

(a)

damages under structured settlements and

(b)

annuities, insurance bonds and similar arrangements

are to be treated for the purpose of calculating a patient’s clear annual income which is used to calculate the amount of certain fees payable under the Court of Protection Rules 1984. The effect is to remove uncertainty about the extent to which such payments should be taken to consist of income as opposed to capital. The Rules achieve this by providing for one half of any such payments to be treated as income.