Any income derived from capital to which the resident is or is treated under regulation 27 (capital jointly held) as beneficially entitled but, subject to sub-paragraph (2), not income derived from capital disregarded under paragraph 1, 2, 5, 10 or 16 of Schedule 4.

Any income derived from capital disregarded under paragraph 2 or 16 of Schedule 4 but only to the extent of any mortgage repayments and payments of council tax or water charges which the resident is liable to make in respect of the dwelling or premises in the period during which that income accrued.