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39.—(1) Any payment of income, other than a payment specified in paragraphs (2) or (3), to a third party in respect of the applicant is to be treated as possessed by the applicant.
(2) Paragraph (1) does not apply to a payment of income made under an occupational pension scheme, a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund where—
(a)the estate of the applicant is subject to sequestration, a judicial factor has been appointed on the applicant’s estate under section 41 of the Solicitors (Scotland) Act 1980(1), the person has entered a protected trust deed within the meaning of section 73(1) of the Bankruptcy Act 1985(2) or a bankruptcy order within the meaning of section 381(1) of the Insolvency Act 1986(3) has been made in respect of the applicant;
(b)the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and
(c)neither the applicant nor the applicant’s partner possesses, or is treated as possessing, any other income apart from that payment.
(3) Paragraph (1) does not apply in respect of any payment of income other than earnings, or earnings derived from employment as an employed earner, arising out of the applicant’s participation in a service user group.
(4) In this regulation “the Board of the Pension Protection Fund” means the body corporate established under section 107 of the Pensions Act 2004(4).
1985 c.66. Section 73(1) was relevantly amended by section 20 of the Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3).
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