The Family Credit (General) Regulations 1987 No. 1973

Regulation 29(2)

SCHEDULE 3U.K.CAPITAL TO BE DISREGARDED

1. The dwelling, together with any garage, garden and outbuildings, normally occupied by the claimant as his home including any premises not so occupied which it is impracticable or unreasonable to sell separately, in particular, in Scotland, any croft land on which the dwelling is situated; but, notwithstanding regulation 10 (calculation of income and capital of members of claimant's family and of a polygamous marriage), only one dwelling shall be disregarded under this paragraph.U.K.

[F11A.—(1) The dwelling, together with any garden, garage and outbuildings, which the claimant intends in due course to occupy as his home but which he currently does not so occupy solely because he resides in living accommodation which is for him job-related.U.K.

(2) Notwithstanding regulation 10, only one dwelling shall be disregarded under this paragraph.

(3) In sub-paragraph (1) the reference to a dwelling includes any premises which it is impracticable or unreasonable to sell separately from the dwelling, in particular, in Scotland, any croft land on which the dwelling is situated.

(4) For the purposes of sub-paragraph (1) living accommodation is job-related for a claimant if it meets either of the following conditions:

Condition 1

The living accommodation is provided for the claimant by reason of his employment, or for his partner by reason of her employment, in any of the following cases—

(i)where it is necessary for the proper performance of the duties of the employment that the employee should reside in that accommodation;

(ii)where the accommodation is provided for the better performance of the duties of the employment, and it is one of the kinds of employment in the case of which it is customary for employers to provide living accommodation for employees;

(iii)where, there begin a special threat to the employee’s security, special security arrangements are in force and the employee resides in the accommodation as part of those arrangements.

Condition 2

The living accommodation is provided for the claimant or his partner under a contract entered into with a person with whom the claimant or his partner is not connected and requiring him or his partner—

(a)to carry on a particular trade, profession, business or vocation;

(b)to carry on that trade, profession, business or vocation on premises or other land provided by another person (whether under a tenancy or otherwise); and

(c)to live either on those premises or on other premises provided by that other person.

(5) For the purposes of Condition 2 the claimant or his partner is connected with another person (“A”) in any of the following circumstances—

(a)A is a relative, or the partner of a relative, of the claimant or his partner;

(b)A is a person with whom the claimant or his partner is carrying on a trade, profession or business in partnership, or the partner or a relative of a person with whom the claimant or his partner is carrying on a trade, profession or business in partnership.

(6) In sub-paragraph (5) “relative” means brother, sister, ancestor or lineal descendant.]

Textual Amendments

F1Sch. 3 para. 1A inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 8) Regulations 2001 (S.I. 2001/3085), regs. 1, 5

2. Any premises acquired for occupation by the claimant which he intends to occupy [F2as his home] within 26 weeks of the date of acquisition or such longer period as is reasonable in the circumstances to enable the claimant to obtain possession and commence occupation of the premises.U.K.

Textual Amendments

F2Words in Sch. 3 para. 2 inserted (12.9.1988) by Family Credit (General) Amendment No. 3 Regulations 1988 (S.I. 1988/1438), reg. 1(1)(b), 9(a)

3. Any sum directly attributable to the proceeds of sale of any premises formerly occupied by the claimant as his home which is to be used for the purchase of other premises intended for such occupation within 26 weeks of the date of sale or such longer period as is reasonable in the circumstances to enable the claimant to complete the purchase.U.K.

4. Any premises occupied in whole or in part by a partner or relative (that is to say any close relative, grandparent, grandchild, uncle, aunt, nephew or niece) of any member of the family [F3as his home], where that person is aged 60 or over or has been incapacitated for a continuous period of at least 13 weeks immediately preceding the date of the claim.U.K.

Textual Amendments

F3Words in Sch. 3 para. 4 inserted (12.9.1988) by Family Credit (General) Amendment No. 3 Regulations 1988 (S.I. 1988/1438), reg. 1(1)(b), 9(b)

[F45. Any future interest in property of any kind, other than land or premises in respect of which the claimant has granted a subsisting lease or tenancy, including sub-leases or sub-tenancies.]U.K.

Textual Amendments

F4Sch. 3 para. 5 substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(8)(a)

6.—[F5(1)] The assets of any business owned in whole or in part by the claimant and for the purposes of which he is engaged as a self-employed earner or, if he has ceased to be so engaged, for such period as may be reasonable in the circumstances to allow for disposal of any such asset.U.K.

[F6(2) The assets of any business owned in whole or in part by the claimant where—

(a)he has ceased to be engaged as a self-employed earner in that business by reason of some disease or bodily or mental disable-ment; and

(b)he intends to become re-engaged as a self-employed earner in that business as soon as he recovers or is able to be re-engaged in that business;

for a period of 26 weeks from the date on which the claimant last ceased to be engaged in that business, or, if it is unreasonable to expect him to become re-engaged in that business within that period, for such longer period as is reasonable in the circumstances to enable him to become so re-engaged.]

[F7(3) In the case of a person who is receiving assistance under an employment programme specified in regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996 (self-employment route of the Employment Option of the New Deal), the assets acquired by that person for the purpose of establishing or carrying on the commercial activity in respect of which such assistance is being received.

(4) In the case of a person who has ceased carrying on the commercial activity in respect of which assistance was received as specified in sub-paragraph (3), the assets relating to that activity for such period as may be reasonable in the circumstances to allow for disposal of any such asset.]

Textual Amendments

F5Sch. 3 para. 6(1) added (2.10.1990) Sch. 3 para. 6 renumbered as para. 6(1) by Family Credit (General) Amendment No. 2 Regulations 1990 (S.I. 1990/1774), reg. 1(1), 5(a)

F6Sch. 3 para. 6(2) added (2.10.1990) by Family Credit (General) Amendment No. 2 Regulations 1990 (S.I. 1990/1774), reg. 1(1), 5(a)

F7Sch. 3 para. 6(3)(4) added (1.6.1998) by The Social Security (Miscellaneous Amendments) (No. 4) Regulations 1998 (S.I. 1998/1174), regs. 1(1), 7(7)

Modifications etc. (not altering text)

C1Sch. 3 para. 6 modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 18(2), (3)(c)

7. Any sum attributable to the proceeds of sale of any asset of such a business which is re-invested or to be re-invested in the business within 13 weeks of the date of sale or such longer period as may be reasonable to allow for the re-investment.U.K.

8. Any arrears of, or any concessionary payment made to compensate for arrears due to non-payment of—U.K.

(a)any payment specified in paragraphs 4, 6 or 7 of Schedule 2;

(b)an income-related benefit [F8or income-based jobseeker’s allowance,] or supplementary benefit under the Supplementary Benefits Act 1976 M1, family income supplement under the Family Income Supplements Act 1970 M2 or housing benefit under Part II of the Social Security and Housing Benefits Act 1982 M3,

(c)[F9any earnings top-up,]

but only for a period of 52 weeks from the date of the receipt of the arrears or of the concessionary payment.

Textual Amendments

F8Words in Sch. 3 para. 8(b) inserted (7.10.1996) by The Social Security and Child Support (Jobseeker’s Allowance) (Consequential Amendments) Regulations 1996 (S.I. 1996/1345), regs. 1, 8(6)(a)

F9Sch. 3 para. 8(c) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Income-related Benefits Schemes and Social Fund (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/1944), regs 1(1)(a), (4), 13, Sch. para. 7(1), 2(c)

Marginal Citations

M11976 c. 71.

M21970 c. 55.

M31982 c. 24.

9. Any sum—U.K.

(a)paid to the claimant in consequence of damage to, or loss of, the home or any personal possession and intended for its repair or replacement; or

(b)acquired by the claimant (whether as a loan or otherwise) on the express condition that it is to be used for effecting essential repairs or improvements to the home,

which is to be used for the intended purpose, for a period of 26 weeks from the date on which it was so paid or acquired or such longer period as is reasonable in the circumstances to enable the claimant to effect the repairs, replacement or improvements.

10. Any sum—U.K.

(a)deposited with a housing association as defined in section 1(1) of the Housing Associations Act 1985 M4 or section 338(1) of the Housing (Scotland) Act 1987 M5 as a condition of occupying the home;

(b)which was so deposited and which is to be used for the purchase of another home, for the period of 26 weeks or such longer period as is reasonable in the circumstances to complete the purchase.

Marginal Citations

M41985 c. 69.

M51987 c. 26.

11. Any personal possessions except those which have been acquired by the claimant with the intention of reducing his capital in order to secure entitlement to [F10working families' tax credit] or to increase the amount of that benefit.U.K.

Textual Amendments

F10Words in Sch. 3 para. 11 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xxiii)

12. The value of the right to receive any income under an annuity and the surrender value (if any) of such an annuity.U.K.

[F1113. Where the funds of a trust are derived from a payment made in consequence of any personal injury to the claimant, the value of the trust fund and the value of the right to receive any payment under that trust.]U.K.

Textual Amendments

F11Sch. 3 para. 13 substituted (2.10.1990) by Family Credit (General) Amendment No. 2 Regulations 1990 (S.I. 1990/1774), reg. 1(1), 5(b)

14. The value of the right to receive any income under a life interest or from a liferent.U.K.

15. The value of the right to receive any income which is disregarded under paragraph 1 of Schedule 1 or 21 of Schedule 2.U.K.

16. The surrender value of any policy of life insurance.U.K.

17. Where any payment of capital falls to be made by instalments, the value of the right to receive any outstanding instalments.U.K.

[F1218. Any payment made by a local authority in accordance with section [F1317, 23C, 24, 24A or 24B] of the Children Act 1989 or, as the case may be, section 12, 24 or 26 of the Social Work (Scotland) Act 1968 (provision of services for children and their families and advice and assistance to certain children).]U.K.

Textual Amendments

F12Sch. 3 para. 18 substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), sch. para 4

F13Words in Sch. 3 para. 18 substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments) Regulations 2002 (S.I. 2002/14), regs. 1(1), 5(2)

[F1419. Any social fund payment made pursuant to Part III of the Act.]U.K.

Textual Amendments

F14Sch. 3 para. 19 substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 14(a)

20. Any refund of tax which falls to be deducted under section 26 of the Finance Act 1982 M6 (deductions of tax from certain loan interest) on a payment of relevant loan interest for the purpose of acquiring an interest in the home or carrying out repairs or improvements to the home.U.K.

Marginal Citations

M61982 c. 39.

[F1521. Any capital which by virtue of regulations 25 (capital treated as income), 27(1) (modifications in respect of children and young persons) or 42A (treatment of student loans) is to be treated as income.]U.K.

Textual Amendments

F15Sch. 3 para. 21 substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 35(2)

22. Where a payment of capital is made in currency other than sterling, any banking charge or commission payable in converting that payment to sterling.U.K.

[F16[F1723.—(1) Any payment made under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments)( No. 2) Trust (“the Trusts”), [F18the Fund] [F19, the Eileen Trust] or [F20the Independent Living Funds]. U.K.

(2) Any payment by or on behalf of a person who is suffering or who suffered from haemophilia [F21or who is or was a qualifying person], which derives from a payment made under any of the Trusts to which sub-paragraph (1) refers and which is made to or for the benefit of—

(a)that person’s partner or former partner from whom he is not, or where that person has died was not, estranged or divorced;

(b)any child who is a member of that person’s family or who was such a member and who is a member of the claimant’s family; or

(c)any young person who is a member of that person’s family or who was such a member and who is a member of the claimant’s family.

(3) Any payment by or on behalf of the partner or former partner of a person who is suffering or who suffered from haemophilia [F22or who is or was a qualifying person] provided that the partner or former partner and that person are not, or if either of them has died were not, estranged or divorced, which derives from a payment made under any of the Trusts to which sub-paragraph (1) refers and which is made to or for the benefit of—

(a)the person who is suffering from haemophilia [F23or who is a qualifying person];

(b)any child who is a member of that person’s family or who was such a member and who is a member of the claimant’s family; or

(c)any young person who is a member of that person’s family or who was such a member and who is a member of the claimant’s family.

(4) Any payment by a person who is suffering from haemophilia [F24or who is a qualifying person], which derives from a payment under any of the Trusts to which sub-paragraph(1) refers, where—

(a)that person has no partner or former partner from whom he is not estranged or divorced, nor any child or young person who is or had been a member of that person’s family; and

(b)the payment is made either—

(i)to that person’s parent or step-parent, or

(ii)where that person at the date of the payment is a child, a young person or a student who has not completed his full-time education and has no parent or step-parent, to his guardian,

but only for a period from the date of the payment until the end of two years from that person’s death.

(5) Any payment out of the estate of a person who suffered from haemophilia [F25or who was a qualifying person], which derives from a payment under any of the Trusts to which sub-paragraph (1) refers, where—

(a)that person at the date of his death (the relevant date) had no partner or former partner from whom he was not estranged or divorced, nor any child or young person who was or had been a member of his family; and

(b)the payment is made either—

(i)to that person’s parent or step-parent, or

(ii)where that person at the relevant date was a child, a young person or a student who had not completed his full-time education and had no parent or step-parent, to his guardian,

but only for a period of two years from the relevant date.

(6) In the case of a person to whom or for whose benefit a payment referred to in this paragraph is made, any capital resource which derives from any payment of income or capital made under or deriving from any of the Trusts.]

[F26(7) For the purposes of sub-paragraphs (2) to (6), any reference to the Trusts shall be construed as including a reference to the Fund [F27and the Eileen Trust].]

Textual Amendments

F16Sch. 3 para. 23 substituted (11.5.1991) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1991 (S.I. 1991/1175), reg. 1(1), 3(7)(a)

F17Sch. 3 para. 23-25 added (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 14

F18Words in sch. 3 para. 23(1) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(7)(a)(i)

F19Words in sch. 3 para. 23(1) inserted (14.5.1993) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1993 (S.I. 1993/1249), regs. 1(1)(a), 2(5)(a)

F20Words in sch. 3 para. 23(1) substituted (22.4.1993) by The Social Security Benefits (Miscellaneous Amendments) (No. 2) Regulations 1993 (S.I. 1993/963), regs. 1(1)(d), 3(3), (4)

F21Words in sch. 3 para. 23(2) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(7)(a)(ii)

F22Words in sch. 3 para. 23(3) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(7)(a)(iii)(aa)

F23Words in sch. 3 para. 23(3)(a) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(7)(a)(iii)(bb)

F24Words in sch. 3 para. 23(4) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(7)(a)(iv)

F25Words in sch. 3 para. 23(5) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(7)(a)(v)

F26Sch. 3 para. 23(7) added (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(7)(a)(vi)

F27Words in sch. 3 para. 23(7) added (14.5.1993) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1993 (S.I. 1993/1249), regs. 1(1)(a), 2(5)(b)

24. The value of the right to receive an occupational [F28or personal] pension.U.K.

Textual Amendments

F17Sch. 3 para. 23-25 added (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 14

F28Words in Sch. 3 para. 24 inserted (8.10.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 11

[F2924A. The value of any funds held under a personal pension scheme or retirement annuity contract.]U.K.

Textual Amendments

F17Sch. 3 para. 23-25 added (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 14

F29Sch. 3 para. 24A inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(8)(b)

25. The value of the right to receive any rent [F30except where the claimant has a reversionary interest in the property in respect of which rent is due.]]U.K.

Textual Amendments

F17Sch. 3 para. 23-25 added (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 14

F30Words in Sch. 3 para. 25 added (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(8)(c)

[F3126.—(1) Where a claimant has ceased to occupy what was formerly the dwelling occupied as the home following his estrangement or divorce from his former partner, that dwelling for a period of 26 weeks from the date on which he ceased to occupy that dwelling.U.K.

(2) In this paragraph “dwelling” includes any garage, garden and outbuildings which were formerly occupied by the claimant as his home and any premises not so occupied which it is impracticable or unreasonable to sell separately, in particular, in Scotland, any croft land on which the dwelling is situated.

Textual Amendments