{
  "url": "https://openlegislation.uk/disability-working-allowance-general-regulations-1991/regulation-29",
  "json_url": "https://openlegislation.uk/disability-working-allowance-general-regulations-1991/regulation-29.json",
  "legislation": "uksi/1991/2887",
  "legislation_title": "The Disability Working Allowance (General) Regulations 1991",
  "legislation_url": "https://openlegislation.uk/disability-working-allowance-general-regulations-1991",
  "path": "regulation/29",
  "kind": "regulation",
  "number": "29",
  "heading": "Notional income",
  "text": "(1) A claimant shall be treated as possessing income of which he has deprived himself for the purpose of securing entitlement to disabled person’s tax credit or increasing the amount of that benefit.\n(2) Except in the case of—\n(a) a discretionary trust;\n(b) a trust derived from a payment made in consequence of a personal injury; or\n(c) a personal pension scheme or retirement annuity contract where the claimant is aged under 60, or\n(d) any sum to which paragraph 45(a) or 46(a) of Schedule 4 (disregard of compensation for personal injuries which is administered by the Court) refers, or\n(e) rehabilitation allowance made under section 2 of the Employment and Training Act 1973.\nany income 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 the claimant.\n(2A) Where a person, aged not less than 60, is a member of, or a person deriving entitlement to a pension under, a personal pension scheme, or is a party, or a person deriving entitlement to a pension under, a retirement annuity contract, and—\n(a) in the case of a personal pension scheme, he fails to purchase an annuity with the funds available in that scheme where—\n(i) he defers, in whole or in part, the payment of any income which would have been payable to him by his pension fund holder;\n(ii) he fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid; or\n(iii) income withdrawal is not available to him under that scheme; or\n(b) in the case of a retirement annuity contract, he fails to purchase an annuity with the funds available under that contract,\nthe amount of any income foregone shall be treated as possessed by him, but only from the date on which it could be expected to be acquired were an application for it to be made.\n(2B) The amount of any income foregone in a case to which either head (2A)(a)(i) or (ii) applies shall be the maximum amount of income which may be withdrawn from the fund and shall be determined by the appropriate officer who shall take account of information provided by the pension fund holder in accordance with regulation 7(5) of the Social Security (Claims and Payments) Regulations 1987 (evidence and information).\n(2C) The amount of any income foregone in a case to which either head (2A)(a)(iii) or sub-paragraph (2a)(b) applies shall be the income that the claimant could have received without purchasing an annuity had the funds held under the relevant personal pension scheme or retirement annuity contract been held under a personal pension scheme where income withdrawal was available and shall be determined in the manner specified in paragraph (2B).\n(3) Any payment of income, other than a payment of income specified in paragraph (3A) of those Regulations, made—\n(a) to a third party in respect of a single claimant or 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 that member of the family to the extent that it is used for his food, ordinary clothing or footwear, household fuel, or housing costs or is used for any personal community charge; collective community charge contribution or council tax for which that member is liable; and in this sub-paragraph 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;\n(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 the 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 or used by or on behalf of any member of the family.\n(3A) Paragraph (3) shall not apply in respect of a payment of income made—\n(a) under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust or the Independent Living Funds;\n(b) pursuant to section 19(1)(a) of the Coal Industry Act 1994 (concessionary coal); or\n(c) pursuant to section 2 of the Employment and Training Act 1973 in respect of a person’s participation—\n(i) in an employment programme specified in regulation 75(1)(a)(ii) of the Jobseeker’s Allowance Regulations 1996;\n(ii) in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations; or\n(iii) in a qualifying course within the meaning specified in regulation 17A(7) of those Regulations.\n(4) Where—\n(a) a claimant performs a service for another person; and\n(b) that person makes no payment of earnings or pays less than that paid for a comparable employment in the area;\nthe appropriate officer shall treat the claimant as possessing such earnings (if any) as is reasonable for that employment unless the claimant satisfies him that the means of that person are insufficient for him to pay or to pay more for the service, but this paragraph shall not apply to a claimant who is engaged by a charitable or voluntary organisation or is a volunteer if the appropriate officer is satisfied in any of those cases that it is reasonable for him to provide his services free of charge or in a case where the service is performed in connection with the claimant’s participation in an employment or training programme in accordance with regulation 19(1)(q) of the Jobseeker’s Allowance Regulations 1996.\n(5) Where a claimant is treated as possessing any income under any of paragraphs (1) to (3), the foregoing provisions of this Part shall apply for the purposes of calculating the amount of that income as if a payment had actually been made and as if it were actual income which he does possess.\n(6) Where a claimant is treated as possessing any earnings under paragraph (4), the foregoing provisions of this Part shall apply for the purposes of calculating the amount of those earnings as if a payment had actually been made and as if they were actual earnings which he does possess, except that paragraph (3) of regulation 22 (calculation of net earnings of employed earners) shall not apply and his net earnings shall be calculated by taking into account those earnings which he is treated as possessing, less—\n(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the lower rate or, as the case may be, the lower rate and the basic rate of tax in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 257(1), (6) and (7) and 259 of the Income and Corporation Taxes Act 1988 (personal relief) as is appropriate to his circumstances; but, if the assessment period is less than a year, the earnings to which the lower rate ... of tax is to be applied and the amount of the personal relief deductible under this sub-paragraph shall be calculated on a pro rata basis;\n(b) where the weekly amount of those earnings equals or exceeds the lower earnings limit, an amount representing primary Class 1 contributions under the Contributions and Benefits Act, calculated by applying to those earnings the initial and main primary percentages applicable at the date of claim in accordance with section 8(1)(a) and (b) of that Act; and\n(c) one-half of any sum payable by the claimant by way of a contribution towards an occupational or personal pension scheme.",
  "extent": "E+W+S",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in reg. 29(1) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(2), Sch. 2 para. 2(ix)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in reg. 29(2) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 3(4)(a)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Reg. 29(2)(d) and word inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Income-related Benefits and Jobseeker’s Allowance (Amendment) (No. 2) Regulations 1997 (S.I. 1997/2197), regs. 1(4), 2"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Reg. 29(2)(e) and word inserted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Social Security (Miscellaneous Amendments) Regulations 1998 (S.I. 1998/563), regs. 1(5), 6(1)(2)(b)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Reg. 29(2A)-(2C) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 3(4)(b)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in reg. 29(2B) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5)(6)(b)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in reg. 29(3) substituted (24.9.1998) by The Social Security Amendment (New Deal) (No.2) Regulations 1998 (S.I. 1998/2117), regs. 1(1), 2(3)(a)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in reg. 29(3)(a) inserted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), reg. 1(1), Sch. para. 8(2)(a)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Word in reg. 29(3)(a) substituted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), reg. 1(1)(b), Sch. para. 14(a)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in reg. 29(3)(a) inserted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), reg. 1(1)(b), Sch. para. 14(b)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Reg. 29(3)(b) substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), reg. 1(1), Sch. para. 8(2)(b)"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Reg. 29(3A) inserted (24.9.1998) by The Social Security Amendment (New Deal) (No.2) Regulations 1998 (S.I. 1998/2117), regs. 1(1), 2(3)(b)"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Words in reg. 29(4) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5)(6)(b)"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Words in reg. 29(4) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 6(a)"
    },
    {
      "type": "F",
      "label": "F15",
      "text": "Words in reg. 29(4) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 6(b)"
    },
    {
      "type": "F",
      "label": "F16",
      "text": "Words in reg. 29(4) added (5.1.1998) by The Social Security Amendment (New Deal) Regulations 1997 (S.I. 1997/2863), regs. 1(1), 17(3)(4)(b)"
    },
    {
      "type": "F",
      "label": "F17",
      "text": "Words in reg. 29(6)(a) substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), reg. 1(1), Sch. para. 8(3)(a)"
    },
    {
      "type": "F",
      "label": "F18",
      "text": "Words in reg. 29(6)(a) inserted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), reg. 1(1), Sch. para. 8(3)(b)"
    },
    {
      "type": "F",
      "label": "F19",
      "text": "Words in reg. 29(6)(a) omitted (with effect in accordance with reg. 1(4) of the amending S.I.) by virtue of The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 4"
    },
    {
      "type": "F",
      "label": "F20",
      "text": "Reg. 29(6)(b) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 26"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Reg. 29 modified (temp.) (29.11.1999) by The Social Security (New Deal Pilot) Regulations 1999 (S.I. 1999/3156), regs. 1(1), 14(4) (with regs. 1(2), 11, 19)"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "Reg. 29 modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 14(4)(c) (with regs. 1(2), 11, 19)"
    },
    {
      "type": "C",
      "label": "C3",
      "text": "Reg. 29(3A)(c) modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 14(4)(a) (with regs. 1(2), 11, 19)"
    },
    {
      "type": "C",
      "label": "C4",
      "text": "Reg. 29(4) modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 14(4)(b)(i) (with regs. 1(2), 11, 19)"
    },
    {
      "type": "C",
      "label": "C5",
      "text": "Reg. 29(4) modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 14(4)(b)(ii) (with regs. 1(2), 11, 19)"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "Reg. 29 in force at 7.4.1992, see reg. 1"
    }
  ],
  "outstanding_effects": [
    {
      "type": "inserted",
      "affecting": "uksi/2001/1334",
      "affecting_title": "The Tax Credits (New Deal Consequential Amendments) Regulations 2001"
    },
    {
      "type": "words substituted",
      "affecting": "uksi/2001/1334",
      "affecting_title": "The Tax Credits (New Deal Consequential Amendments) Regulations 2001"
    },
    {
      "type": "omitted",
      "affecting": "uksi/2001/1334",
      "affecting_title": "The Tax Credits (New Deal Consequential Amendments) Regulations 2001"
    },
    {
      "type": "inserted",
      "affecting": "uksi/2001/1334",
      "affecting_title": "The Tax Credits (New Deal Consequential Amendments) Regulations 2001"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1991/2887/regulation/29",
    "retrieved_at": "2026-10-31T10:31:00.399326+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}