Regulation 3 Amendment of regulation 16 of the principal Regulations

After regulation 16(4) of the principal Regulations^f1 (capital treated as income), insert–

“(5)

Where an agreement or court order provides that payments shall be made to the resident in consequence of any personal injury to the resident and that such payments are to be made, wholly or partly, by way of periodical payments, any such periodical payments received by the resident, to the extent that they are not a payment of income, shall be treated as income.”.