The Child Support (Variations) Regulations 2000

Assets E+W+S

18.—(1) Subject to paragraphs (2) and (3), a case shall constitute a case for the purposes of paragraph 4(1) of Schedule 4B to the Act where the Secretary of State is satisfied there is an asset—

(a) in which the non-resident parent [F1 has a beneficial interest], or which the non-resident parent has the ability to control;

(b) which has been transferred by the non-resident parent to trustees, and the non-resident parent is a beneficiary of the trust so created, in circumstances where the Secretary of State is satisfied the non-resident parent has made the transfer to reduce the amount of assets which would otherwise be taken into account for the purposes of a variation under paragraph 4(1) of Schedule 4B to the Act; or

(c) which has become subject to a trust created by legal implication of which the non-resident parent is a beneficiary.

(2) For the purposes of this regulation “asset” means—

(a) money, whether in cash or on deposit, including any which, in Scotland, is monies due or an obligation owed, whether immediately payable or otherwise and whether the payment or obligation is secured or not and the Secretary of State is satisfied that requiring payment of the monies or implementation of the obligation would be reasonable;

(b) a legal estate or beneficial interest in land and rights in or over land;

(c) shares as defined in section 744 of the Companies Act 1985 M1 , stock and unit trusts as defined in section 6 of the Charging Orders Act 1979 M2 , gilt-edged securities as defined in Part 1 of Schedule 9 to the Taxation of Chargeable Gains Act 1992 M3 , and other similar financial instruments; or

(d) a chose in action which has not been enforced when the Secretary of State is satisfied that such enforcement would be reasonable,

and includes any such asset located outside Great Britain.

(3) Paragraph (2) shall not apply—

[F2 (a) where the total value of the assets referred to in that paragraph does not exceed £65,000 after deduction of—

(i) the amount owing under any mortgage or charge on those assets;

(ii) the value of any asset in respect of which income has been taken into account under regulation 19(1A);]

(b) in relation to any asset which the Secretary of State is satisfied is being retained by the non-resident parent to be used for a purpose which the Secretary of State considers reasonable in all the circumstances of the case;

(c) to any asset received by the non-resident parent as compensation for personal injury suffered by him;

(d) [F3 except where the asset is of a type specified in paragraph (2)(b) and produces income which does not form part of the net weekly income of the non-resident parent as calculated or estimated under Part III of the Schedule to the Maintenance Calculations and Special Cases Regulations] to any asset used in the course of a trade or business; or

(e) to property which is the home of the non-resident parent or any child of his[F4 ; or

(f) where, were the non-resident parent a claimant, paragraph 22 (treatment of payments from certain trusts) or 64 (treatment of relevant trust payments) of Schedule 10 to the Income Support (General) Regulations 1987 would apply to the asset referred to in that paragraph.]

(4) For the purposes of this regulation, where any asset is held in the joint names of the non-resident parent and another person the Secretary of State shall assume, unless evidence to the contrary is provided to him, that the asset is held by them in equal shares.

(5) Where a variation is agreed on the ground that the non-resident parent has assets for which provision is made in this regulation, the Secretary of State shall calculate the weekly value of the assets by applying the statutory rate of interest to the value of the assets and dividing by 52, and the resulting figure, aggregated with any benefit, pension or allowance [F5 prescribed for the purposes of paragraph 4(1)(b) of Schedule 1 to the Act] which the non-resident parent receives, other than any benefits referred to in regulation 26(3), shall be taken into account as additional income under regulation 25.

(6) For the purposes of this regulation, the “statutory rate of interest” means interest at the statutory rate prescribed for a judgment debt or, in Scotland, the statutory rate in respect of interest included in or payable under a decree in the Court of Session, which in either case applies on the date from which the maintenance calculation which takes account of the variation takes effect.

Textual Amendments

F1 Words in reg. 18(1)(a) substituted (30.4.2002) by The Child Support (Miscellaneous Amendments) Regulations 2002 (S.I. 2002/1204), regs. 3(a), 9(5)(a)

F2 Reg. 18(3)(a) substituted (6.4.2005) by Child Support (Miscellaneous Amendments) Regulations 2005 (S.I. 2005/785), regs. 1(2)(c), 8(4)

F3 Words in reg. 18(3)(d) inserted (30.4.2002) by The Child Support (Miscellaneous Amendments) Regulations 2002 (S.I. 2002/1204), regs. 3(a), 9(5)(b)(i)

F4 Reg. 18(3)(f) added (30.4.2002) by The Child Support (Miscellaneous Amendments) Regulations 2002 (S.I. 2002/1204), regs. 3(a), 9(5)(b)(ii)

F5 Words in reg. 18(5) inserted (30.4.2002) by The Child Support (Miscellaneous Amendments) Regulations 2002 (S.I. 2002/1204), regs. 3(a), 9(6)

Commencement Information

I1 Reg. 18 partly in force; reg. 18 not in force at made date; reg. 18 in force at 3.3.2003 for certain purposes, see reg. 1(1) and S.I. 2003/192

Marginal Citations

M1 1985 c. 6.

M2 1979 c. 53.

M3 1992 c. 12.