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PART 6 N.I.CALCULATION OF CAPITAL AND INCOME

CHAPTER 4N.I.MISCELLANEOUS

Compensation for personal injuryN.I.

75.—(1) This regulation applies where a sum has been awarded to a person, or has been agreed by or on behalf of a person, in consequence of a personal injury to that person.

(2) If, in accordance with an order of the court or an agreement, the person receives all or part of that sum by way of regular payments, those payments are to be disregarded in the calculation of the person's unearned income.

(3) If the sum has been used to purchase an annuity, payments under the annuity are to be disregarded in the calculation of the person's unearned income.

(4) If the sum is held in trust, any capital of the trust derived from that sum is to be disregarded in the calculation of the person's capital and any income from the trust is to be disregarded in the calculation of the person's unearned income.

(5) If the sum is administered by the court on behalf of the person or can only be disposed of by direction of the court, it is to be disregarded in the calculation of the person's capital and any regular payments from that amount are to be disregarded from the calculation of the person's unearned income.

(6) If the sum is not held in trust or has not been used to purchase an annuity or otherwise disposed of, but has been paid to the person within the past 12 months that sum is to be disregarded in the calculation of the person's capital.

Special schemes for compensation etc.N.I.

76.—(1) This regulation applies where a person receives a payment from a scheme established or approved by the Secretary of State or from a trust established with funds provided by the Secretary of State for the purpose of—

(a)providing compensation [F1or support] in respect of [F2any of the following] —

(i)a person having been diagnosed with variant Creutzfeldt-Jacob disease or infected from contaminated blood products,

(ii)the bombings in London on 7th July 2005,

(iii)person's who have been interned or suffered forced labour, injury, property loss or loss of a child during the Second World War, F3...

[F4(iv)the terrorist attacks in London on 22nd March 2017 or 3rd June 2017,

(v)the bombing in Manchester on 22nd May 2017, F5...]

F6(vi). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F7(vii)historic institutional child abuse in the United Kingdom;]

(b)supporting persons with a disability to live independently in their accommodation.

[F8(1A) This regulation also applies where a person receives a payment from—

(a)the National Emergences Trust, registered charity number 1182809;

(b)the Child Migrants Trust, registered charity number 1171479;

F9(c)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F10(d)the scheme established by the Windrush Compensation Scheme (Expenditure) Act 2020]

[F11(e)the Post Office or the Secretary of State for the purpose of providing compensation or support which is—

(i)in connection with the failings of the Horizon system, or

(ii)otherwise payable following the judgment in Bates and Others v Post Office Limited ((No. 3) “Common Issues”).]

[F12(f)the Victims of Overseas Terrorism Compensation Scheme established by the Ministry of Justice in 2012 under section 47 of the Crime and Security Act 2010.]

[F13(1B) This regulation also applies where a person receives a payment made for the purpose of providing compensation or support in respect of the fire on 14th June 2017 at Grenfell Tower.

(1C) This regulation also applies where a person—

(a)receives a vaccine damage payment or is a person for whose benefit a vaccine damage payment is made;

(b)is the partner of a person referred to in sub-paragraph (a) and receives a payment by or on behalf of that person which is derived from a vaccine damage payment;

(c)was the partner of a person referred to in sub-paragraph (a) immediately before the latter’s death and receives a payment from their estate which is derived from a vaccine damage payment;

(d)in a case where a vaccine damage payment is made to the personal representative of a person (“P”) who was severely disabled as a result of vaccination, the person who was P’s partner immediately before P’s death and receives a payment from P’s estate which is derived from the vaccine damage payment.]

(2) Any such payment, if it is capital, is to be disregarded in the calculation of the person's capital and, if it is income, is to be disregarded in the calculation of the person's income.

[F14(3) In relation to a claim for universal credit made by a person other than the diagnosed or infected person referred to in paragraph (1)(a)(i), a payment received from the scheme or trust or which derives from a payment received from the scheme or trust, is to be disregarded if it would be disregarded in relation to an award of state pension credit by virtue of paragraph 13 or 15 of Schedule 5 to the State Pension Credit Regulations (Northern Ireland) 2003.]

[F15(4) In this regulation—

“the Horizon system” means any version of the computer system used by the Post Office known as Horizon, Horizon Legacy, Horizon Online or HNG-X;

“the Post Office” means Post Office Limited (registered number 02154540);

“vaccine damage payment” means a payment made under the Vaccine Damage Payments Act 1979.]

Textual Amendments

Company analogous to a partnership or one person businessN.I.

77.—(1) Where a person stands in a position analogous to that of a sole owner or partner in relation to a company which is carrying on a trade or a property business, the person is to be treated, for the purposes of this Part, as the sole owner or partner.

(2) Where paragraph (1) applies, the person is to be treated, subject to paragraph (3)(a), as possessing an amount of capital equal to the value, or the person's share of the value, of the capital of the company and the value of the person's holding in the company is to be disregarded.

(3) Where paragraph (1) applies in relation to a company which is carrying on a trade—

(a)any assets of the company that are used wholly and exclusively for the purposes of the trade are to be disregarded from the person's capital while they are engaged in activities in the course of that trade,

(b)the income of the company or the person's share of that income is to be treated as the person's income and calculated in the manner set out in regulation 57 (self-employed earnings) as if it were self-employed earnings, and

(c)where the person's activities in the course of the trade are their main employment, the person is to be treated as if they were in gainful self employment and, accordingly, regulation 63 (minimum income floor) applies.

(4) Any self-employed earnings which the person is treated as having by virtue of paragraph (3)(b) are in addition to any employed earnings the person receives as a director or employee of the company.

(5) This regulation does not apply where the person derives income from the company that is employed earnings by virtue of Chapter 8 (workers under arrangements made by intermediaries)[F16, Chapter 9 (managed service companies) or Chapter 10 (workers’ services provided to public sector through intermediaries) of Part 2 of ITEPA and that income is derived from activities that are the person’s main employment].

(6) In paragraph (1) “property business” has the meaning in section 204 of the Corporation Tax Act 2009 M1.

Textual Amendments

Marginal Citations

M12009 c .4.