{
  "url": "https://openlegislation.uk/disability-working-allowance-general-regulations-1991/regulation-37",
  "json_url": "https://openlegislation.uk/disability-working-allowance-general-regulations-1991/regulation-37.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/37",
  "kind": "regulation",
  "number": "37",
  "heading": "Notional capital",
  "text": "(1) ... a claimant shall be treated as possessing capital 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 except—\n(a) where that capital is derived from a payment made in consequence of any personal injury and is placed on trust for the benefit of the claimant; or\n(b) to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 38 (diminishing notional capital rule) or\n(c) 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.\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) any loan which would be obtainable only if secured against capital disregarded under Schedule 4, or\n(d) a personal pension scheme or retirement annuity contract, or\n(e) 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,\nany 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.\n(3) Any payment of capital, other than a payment of capital 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 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 member to the extent that it is kept by him or used on behalf of any member of the family.\n(3A) Paragraph (3) shall not apply in respect of a payment of capital 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 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 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 shall be treated as if he were such sole owner or partner and in such a case—\n(a) the value of his holding in that company shall, notwithstanding regulation 32 (calculation of capital), be disregarded; and\n(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.\n(5) For so long as the claimant undertakes activities in the course of the business of the company, the amount he is treated as possessing under paragraph (4) shall be disregarded.\n(6) Where a claimant is treated as possessing capital under any of paragraphs (1) to (4) the foregoing provisons of this Chapter shall apply for the purposes of calculating its amount as if it were actual capital which he does possess.\n(7) For the avoidance of doubt a claimant is to be treated as possessing capital under paragraph (1) only if the capital of which he has deprived himself is actual capital and not capital which he is treated as possessing under regulation 39.",
  "extent": "E+W+S",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in reg. 37(1) omitted (5.10.1992) by virtue of The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), reg. 1(1), Sch. para. 11"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in reg. 37(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(xii)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Reg. 37(1)(c) 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. 37(2)(d) added and word 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(5)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Reg. 37(2)(e) 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": "F6",
      "text": "Words in reg. 37(3) substituted (24.9.1998) by The Social Security Amendment (New Deal) (No.2) Regulations 1998 (S.I. 1998/2117), regs. 1(1), 3(2)(a)(3)(a)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Word in reg. 37(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. 15(a)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in reg. 37(3)(b) inserted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), reg. 1(1)(b), Sch. para. 15(b)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Reg. 37(3A) inserted (24.9.1998) by The Social Security Amendment (New Deal) (No.2) Regulations 1998 (S.I. 1998/2117), regs. 1(1), 3(2)(b)(3)(a)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Reg. 37(3A) modified (temp.) (29.11.1999) by The Social Security (New Deal Pilot) Regulations 1999 (S.I. 1999/3156), regs. 1(1), 15(2)(3) (with regs. 1(2), 11, 19)"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "Reg. 37(3A) 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), 15(2)(3)(b) (with regs. 1(2), 11, 19)"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "Reg. 37 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"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1991/2887/regulation/37",
    "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."
}