PART 6Assessment of household income and capital
CHAPTER 6Miscellaneous
Compensation for personal injury74.
(1)
This regulation applies where a sum has been awarded to an applicant, or has been agreed by or behalf of an applicant—
(a)
in consequence of a personal injury to that applicant, or
(b)
as compensation for the death of one or both parents where the applicant is under the age of 18.
(2)
If, in accordance with an order of the court or an agreement, the applicant receives all or part of that sum by way of regular payments, those payments are to be disregarded in the calculation of the applicant’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 applicant’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 applicant’s capital and any income from the trust is to be disregarded in the calculation of the applicant’s unearned income.
(5)
If the sum is administered by the court on behalf of the applicant or can only be disposed of by direction of the court, it is to be disregarded in the calculation of the applicant’s capital and any regular payments from that amount are to be disregarded in the calculation of the applicant’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 applicant within the past 12 months, that sum is to be disregarded in the calculation of the applicant’s capital.