Regulation 48 Income treated as capitalI1

England, Wales and Scotland

(1)

Any F1... bounty derived from employment to which paragraph 7 of Schedule 8 applies F2and paid at intervals of at least one year shall be treated as capital.

(2)

Except in the case of an amount to which section 23(5) (a) (ii) of the Act (refund of tax in trade disputes cases) F3or regulation 41(4) (capital treated as income) applies, any amount by way of a refund of income tax deducted from profits or emoluments chargeable to income tax under Schedule D or E shall be treated as capital.

(3)

Any holiday pay which is not earnings under regulation 35(1) (d) (earnings of employed earners) shall be treated as capital.

(4)

Except any income derived from capital disregarded under paragraph 1, 2, 4, 6, F412 F5, 25 to 28, 44 or 45 of Schedule 10, any income derived from capital shall be treated as capital but only from the date it is normally due to be credited to the claimant's account.

(5)

Subject to paragraph (6), in the case of employment as an employed earner, any advance of earnings or any loan made by the claimant's employer shall be treated as capital.

F6(6)

Paragraph (5) shall not apply to a person to whom section 23 of the Act (trade disputes) applies or in respect of whom section 20(3) of the Act (conditions of entitlement to income support) has effect as modified by section 23A(b) (effect of return to work).

(7)

Any payment under section 30 of the Prison Act 1952 F7 (payments for discharged prisoners) or allowance under section 17 of the Prisons (Scotland) Act 1952 F8 (allowances to prisoners on discharge) shall be treated as capital.

F9(8)

~~F10Any payment made by a local authority, which represents arrears of payments under—~~

(a)

~~paragraph 15 of Schedule 1 to the Children Act 1989 (power of a local authority to make contributions to a person with whom a child lives as a result of a residence order); or~~

(b)

~~section 34(6) or as the case may be, section 50 of the Children Act 1975 (payments towards maintenance for children),~~

~~shall be treated as capital.~~

(8A)

F11Any payment made by an authority, as defined in Article 2 of the Children Order which represents arrears of payments under Article 15 of, and paragraph 17 of Schedule 1 to, that Order (contribution by an authority to child’s maintenance), shall be treated as capital.

F12(9)

Any charitable or voluntary payment which is not made or not due to be made at regular intervals, other than one to which paragraph (10) applies, shall be treated as capital.

(10)

This paragraph applies to a payment—

(a)

which is made to a person to whom section 23 of the Act (trade disputes) applies or in respect of whom section 20(3) of the Act (conditions of entitlement to income support) has effect as modified by section 23A(b) of the Act (effect of return to work) ~~F13or to a member of the family~~ or to the partner of such a person;

(F14ab)

which is a Grenfell Tower payment;

(F15ac)

which is a child abuse payment;

(ad)

which is a Windrush payment; F16...

(F17ae)

which is a Post Office compensation payment;

(F18af)

which is an LGBT Financial Recognition Scheme payment;

(F19ag)

which is a miscarriage of justice compensation payment;

(b)

~~F20to which regulation 44(2) (modification in respect of children and young persons) applies; or~~

(c)

which is made under F21or by the Macfarlane Trust F22, the Macfarlane (Special Payments) Trust F23, the Macfarlane (Special Payments) (No. 2) Trust F24, the Fund F25, the Eileen Trust F26, MFET Limited F27, the Skipton Fund, the Caxton Foundation F28, the Scottish Infected Blood Support Scheme F29, an approved blood scheme F30, the London Emergencies Trust, the We Love Manchester Emergency Fund F31, the National Emergencies Trust F32, the Victims of Overseas Terrorism Compensation Scheme or F33the Independent Living F34Fund (2006).

F35(11)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F36(12)

Any arrears of subsistence allowance which are paid to a claimant as a lump sum shall be treated as capital.

Annotations

Textual amendments

F1: Word in reg. 48(1) omitted (12.9.1988) by virtue of The Income Support (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1445), regs. 1(1)(b), 11(a)
F2: Words in reg. 48(1) inserted (12.9.1988) by The Income Support (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1445), regs. 1(1)(b), 11(a)
F3: Words in reg. 48(2) inserted (12.9.1988) by The Income Support (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1445), regs. 1(1)(b), 11(b)
F4: Words in reg. 48(4) substituted (12.12.1988) by The Income Support (General) Amendment No. 5 Regulations 1988 (S.I. 1988/2022), regs. 1(1)(a), 11(a)
F5: Words in reg. 48(4) substituted (for specified purposes and with effect in accordance with reg. 1(4) of the amending S.I.) by The Social Security (Miscellaneous Amendments) (No. 4) Regulations 2006 (S.I. 2006/2378), reg. 5(4)
F6: Reg. 48(6) substituted (11.4.1988) by The Income Support (General) Amendment Regulations 1988 (S.I. 1988/663), regs. 1(1), 21
F7: 1952 c. 52; section 30 was substituted by section 66 (3) of the Criminal Justice Act 1967 (c. 80).
F8: 1952 c. 61.
F9: Reg. 48(8)(8A) substituted for reg. 48(8) (coming into force in accordance with reg. 1(2)(3) of the amending S.I.) by The Social Security (Miscellaneous Amendments) Regulations 1998 (S.I. 1998/563), regs. 1(2), 14(1)
F10: Reg. 48(8) omitted (for specified purposes and with effect in accordance with reg. 1(2)-(5) of the amending S.I.) by virtue of The Social Security (Working Tax Credit and Child Tax Credit) (Consequential Amendments) Regulations 2003 (S.I. 2003/455), Sch. 1 para. 12(a)
F11: Reg. 48(8A) omitted (for specified purposes and with effect in accordance with reg. 1(2)-(5) of the amending S.I.) by virtue of The Social Security (Working Tax Credit and Child Tax Credit) (Consequential Amendments) Regulations 2003 (S.I. 2003/455), Sch. 1 para. 12(a)
F12: Reg. 48(9)(10) added (12.12.1988) by The Income Support (General) Amendment No. 5 Regulations 1988 (S.I. 1988/2022), regs. 1(1)(a), 11(b)
F13: Words in reg. 48(10)(a) substituted (for specified purposes and with effect in accordance with reg. 1(2)-(5) of the amending S.I.) by The Social Security (Working Tax Credit and Child Tax Credit) (Consequential Amendments) Regulations 2003 (S.I. 2003/455), Sch. 1 para. 12(b)
F14: Reg. 48(10)(ab) inserted (15.7.2020) by The Social Security (Income and Capital) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/618), regs. 1, 2(4)(a)
F15: Reg. 48(10)(ac)(ad) inserted (1.1.2022) by The Social Security (Income and Capital Disregards) (Amendment) Regulations 2021 (S.I. 2021/1405), regs. 1, 2(4)(b)
F16: Word in reg. 48(10)(ad) omitted (9.7.2023) by virtue of The Social Security (Income and Capital Disregards) (Amendment) Regulations 2023 (S.I. 2023/640), regs. 1(1), 2(4)(a)
F17: Reg. 48(10)(ae) inserted (9.7.2023) by The Social Security (Income and Capital Disregards) (Amendment) Regulations 2023 (S.I. 2023/640), regs. 1(1), 2(4)(b)
F18: Reg. 48(10)(af) inserted (28.2.2025) by The Social Security (Income and Capital Disregards) (Amendment) Regulations 2025 (S.I. 2025/44), regs. 1(1), 2(4)
F19: Reg. 48(10)(ag) inserted (22.7.2025) by The Social Security (Income and Capital Disregards) (Amendment) (No. 2) Regulations 2025 (S.I. 2025/778), regs. 1(1), 2(4)
F20: Reg. 48(10)(b) omitted (for specified purposes and with effect in accordance with reg. 1(2)-(5) of the amending S.I.) by virtue of The Social Security (Working Tax Credit and Child Tax Credit) (Consequential Amendments) Regulations 2003 (S.I. 2003/455), Sch. 1 para. 12(a) (with reg. 7)
F21: Words in reg. 48(10)(c) inserted (6.4.2010) by The Social Security (Miscellaneous Amendments) (No. 2) Regulations 2010 (S.I. 2010/641), regs. 1(1), 2(7)(b)
F22: Words in reg. 48(10)(c) inserted (31.1.1990) by The Income-related Benefits Schemes Amendment Regulations 1990 (S.I. 1990/127), regs. 1(1), 3(3)(b)
F23: Words in reg. 48(10)(c) inserted (11.5.1991) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1991 (S.I. 1991/1175), regs. 1(1), 5(4)
F24: Words in reg. 48(10)(c) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 6(4)
F25: Words in reg. 48(10)(c) 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), 4(3)(b)
F26: Words in reg. 48(10)(c) inserted (6.4.2010) by The Social Security (Miscellaneous Amendments) (No. 2) Regulations 2010 (S.I. 2010/641), regs. 1(1), 2(3)(c)
F27: Words in reg. 48(10)(c) inserted (31.10.2011) by The Social Security (Miscellaneous Amendments) (No. 3) Regulations 2011 (S.I. 2011/2425), regs. 1(2), 7(5)
F28: Words in reg. 48(10)(c) inserted (3.4.2017) by The Social Security (Scottish Infected Blood Support Scheme) Regulations 2017 (S.I. 2017/329), regs. 1, 3(3)(b)
F29: Words in reg. 48(10)(c) inserted (23.10.2017) by The Social Security (Infected Blood and Thalidomide) Regulations 2017 (S.I. 2017/870), regs. 1, 2(3)(b)
F30: Words in reg. 48(10)(c) inserted (19.6.2017) by The Social Security (Emergency Funds) (Amendment) Regulations 2017 (S.I. 2017/689), regs. 1, 2(3)(b)
F31: Words in reg. 48(10)(c) inserted (15.7.2020) by The Social Security (Income and Capital) (Miscellaneous Amendments) Regulations 2020 (S.I. 2020/618), regs. 1, 2(4)(b)
F32: Words in reg. 48(10)(c) inserted (27.10.2023) by The Social Security (Habitual Residence and Past Presence, and Capital Disregards) (Amendment) Regulations 2023 (S.I. 2023/1144), regs. 1(1), 3(3)(a)
F33: Words in reg. 48(10)(c) substituted (22.4.1993) by The Social Security Benefits (Miscellaneous Amendments) (No. 2) Regulations 1993 (S.I. 1993/963), regs. 1, 2(3)(4)
F34: Words in reg. 48(10)(c) substituted (17.11.2008) by The Social Security (Miscellaneous Amendments) (No.6) Regulations 2008 (S.I. 2008/2767), regs. 1(2), 2(6)(b)
F35: Reg. 48(11) omitted (14.4.2008) by virtue of The Social Security (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/698), regs. 1(1), 2(9)
F36: Reg. 48(12) added (3.4.2000) by The Social Security Amendment (Employment Zones) Regulations 2000 (S.I. 2000/724), regs. 1(1), 3(2)(c)

Commencement

I1: Reg. 48 in force at 11.4.1988, see reg. 1

Notes on the whole SI

Textual amendments

F1: 1986 c. 50; section 84(1) is an interpretation provision and is cited because of the meanings assigned to the words “prescribed” and “regulations”.
F2: 1975 c. 14; section 114 is applied by section 52(3)(b) of the Social Security Act 1986 (c. 50); section 166(3A) is inserted by section 62 of that Act and section 166(1) to (3A) is applied by section 83(1) of that Act.

Notes on Part V

Modifications

C1: Pt. V applied (with modifications) (S.) (6.10.2003) by The National Health Service (Travelling Expenses and Remission of Charges) (Scotland) (No. 2) Regulations 2003 (S.S.I. 2003/460), reg. 1, sch. Pt. I Table A (with reg. 13)

Notes on Chapter VI

Modifications

C1: Pt. V applied (with modifications) (S.) (6.10.2003) by The National Health Service (Travelling Expenses and Remission of Charges) (Scotland) (No. 2) Regulations 2003 (S.S.I. 2003/460), reg. 1, sch. Pt. I Table A (with reg. 13)
C2: Pt. V Ch. VI applied (with modifications) (S.) (6.10.2003) by The National Health Service (Travelling Expenses and Remission of Charges) (Scotland) (No. 2) Regulations 2003 (S.S.I. 2003/460), reg. 1, sch. Pt. I Table A (with reg. 13)