The Council Tax Benefit Regulations 2006

• (b) any payment in respect of any—

• (i) book registered under the Public Lending Right Scheme 1982; or

• (ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982,

where the claimant is the first owner of the copyright, design, patent or trade mark, or an original contributor to the book or work concerned.

• (4) Where the claimant’s earnings consist of any items to which paragraph (3) applies, those earnings shall be taken into account over a period equal to such number of weeks as is equal to the number obtained (and any fraction shall be treated as a corresponding fraction of a week) by dividing the earnings by the amount of council tax benefit which would be payable had the payment not been made plus an amount equal to the total of the sums which would fall to be disregarded from the payment under Schedule 3 (sums to be disregarded in the calculation of earnings) as appropriate in the claimant’s case.

Calculation of net profit of self-employed earners

28

• (1) For the purposes of regulation 20 (average weekly earnings of self-employed earners) the earnings of a claimant to be taken into account shall be—

• (a) in the case of a self-employed earner who is engaged in employment on his own account, the net profit derived from that employment;

• (b) in the case of a self-employed earner whose employment is carried on in partnership or is that of a share fisherman within the meaning of the Social Security (Mariners' Benefits) Regulations 1975 , his share of the net profit derived from that employment, less—

• (i) an amount in respect of income tax and of social security contributions payable under the Act calculated in accordance with regulation 29 (deduction of tax and contributions for self-employed earners); and

• (ii) one-half of the amount calculated in accordance with paragraph (11) in respect of any qualifying premium.

• (2) There shall be disregarded from a claimant's net profit, any sum, where applicable, specified in paragraphs 1 to 14 of Schedule 3.

• (3) For the purposes of paragraph (1)(a) the net profit of the employment shall, except where paragraph (9) applies, be calculated by taking into account the earnings of the employment over the assessment period less—

• (a) subject to paragraphs (5) to (7), any expenses wholly and exclusively incurred in that period for the purposes of that employment;

• (b) an amount in respect of—

• (i) income tax; and

• (ii) social security contributions payable under the Act,

calculated in accordance with regulation 29 (deduction of tax and contributions for self-employed earners); and

• (c) one-half of the amount calculated in accordance with paragraph (11) in respect of any qualifying premium.

• (4) For the purposes of paragraph (1)(b) the net profit of the employment shall be calculated by taking into account the earnings of the employment over the assessment period less, subject to paragraphs (5) to (7), any expenses wholly and exclusively incurred in that period for the purposes of the employment.

• (5) Subject to paragraph (6), no deduction shall be made under paragraph (3)(a) or (4), in respect of—

• (a) any capital expenditure;

• (b) the depreciation of any capital asset;

• (c) any sum employed or intended to be employed in the setting up or expansion of the employment;

• (d) any loss incurred before the beginning of the assessment period;

• (e) the repayment of capital on any loan taken out for the purposes of the employment;

• (f) any expenses incurred in providing business entertainment; and

• (g) any debts, except bad debts proved to be such, but this sub-paragraph shall not apply to any expenses incurred in the recovery of a debt.

• (6) A deduction shall be made under paragraph (3)(a) or (4) in respect of the repayment of capital on any loan used for—

• (a) the replacement in the course of business of equipment or machinery; and

• (b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.

• (7) The relevant authority shall refuse to make a deduction in respect of any expenses under paragraph (3)(a) or (4) where it is not satisfied given the nature and the amount of the expense that it has been reasonably incurred.

• (8) For the avoidance of doubt—

• (a) a deduction shall not be made under paragraph (3)(a) or (4) in respect of any sum unless it has been expended for the purposes of the business;

• (b) a deduction shall be made thereunder in respect of—

• (i) the excess of any value added tax paid over value added tax received in the assessment period;

• (ii) any income expended in the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair;

• (iii) any payment of interest on a loan taken out for the purposes of the employment.

• (9) Where a claimant is engaged in employment as a child minder the net profit of the employment shall be one-third of the earnings of that employment, less—

• (a) an amount in respect of—

• (i) income tax; and

• (ii) social security contributions payable under the Act,

calculated in accordance with regulation 29 (deduction of tax and contributions for self-employed earners); and

• (b) one-half of the amount calculated in accordance with paragraph (11) in respect of any qualifying premium.

• (10) For the avoidance of doubt where a claimant is engaged in employment as a self-employed earner and he is also engaged in one or more other employments as a self-employed or employed earner any loss incurred in any one of his employments shall not be offset against his earnings in any other of his employments.

• (11) The amount in respect of any qualifying premium shall be calculated by multiplying the daily amount of the qualifying premium by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying premium shall be determined—

• (a) where the qualifying premium is payable monthly, by multiplying the amount of the qualifying premium by 12 and dividing the product by 365;

• (b) in any other case, by dividing the amount of the qualifying premium by the number equal to the number of days in the period to which the qualifying premium relates.

• (12) In this regulation, “qualifying premium” means any premium which is payable periodically in respect of ... a personal pension scheme and is so payable on or after the date of claim.

Deduction of tax and contributions of self-employed earners

29

• (1) The amount to be deducted in respect of income tax under regulation 28(1)(b)(i), (3)(b)(i) or (9)(a)(i) (calculation of net profit of self-employed earners) shall be calculated on the basis of the amount of chargeable income and as if that income were assessable to income tax at ... the basic rate of tax applicable to the assessment period less only the personal relief to which the claimant is entitled under sections 257(1) of the Income and Corporation Taxes Act 1988 (personal allowances) as is appropriate to his circumstances; but, if the assessment period is less than a year, the earnings to which the basic rate of tax is to be applied and the amount of the personal reliefs deductible under this paragraph shall be calculated on a pro rata basis.

• (2) The amount to be deducted in respect of social security contributions under regulation 28(1)(b)(i), (3)(b)(ii) or (9)(a)(ii) shall be the total of—

• (a) the amount of Class 2 contributions payable under section 11(1) or, as the case may be, 11(3) of the Act at the rate applicable to the assessment period except where the claimant's chargeable income is less than the amount specified in section 11(4) of the Act (small earnings exception) for the tax year applicable to the assessment period; but if the assessment period is less than a year, the amount specified for that tax year shall be reduced pro rata; and

• (b) the amount of Class 4 contributions (if any) which would be payable under section 15 of the Act (Class 4 contributions recoverable under the Income Tax Acts) at the percentage rate applicable to the assessment period on so much of the chargeable income as exceeds the lower limit but does not exceed the upper limit of profits and gains applicable for the tax year applicable to the assessment period; but if the assessment period is less than a year, those limits shall be reduced pro rata.

• (3) In this regulation “chargeable income” means—

• (a) except where sub-paragraph (b) applies, the earnings derived from the employment less any expenses deducted under paragraph (3)(a) or, as the case may be, (4) of regulation 28;

• (b) in the case of employment as a child minder, one-third of the earnings of that employment.

SECTION 5 — Other income

Calculation of income other than earnings

30

• (1) For the purposes of regulation 21 (average weekly income other than earnings), the income of a claimant which does not consist of earnings to be taken into account shall, subject to paragraphs (2) to (8), be his gross income and any capital treated as income under regulation 31 (capital treated as income).

• (2) There shall be disregarded from the calculation of a claimant's gross income under paragraph (1), any sum, where applicable, specified in Schedule 4.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) Where the payment of any benefit under the benefit Acts is subject to any deduction by way of recovery the amount to be taken into account under paragraph (1) shall be the gross amount payable.

• (5A) Where the claimant or, where he is a member of a couple, his partner is receiving a contributory employment and support allowance and that benefit has been reduced under regulation 63 of the Employment and Support Allowance Regulations, the amount of that benefit to be taken into account is the amount as if it had not been reduced.

• (6) Where an award of any working tax credit or child tax credit under the Tax Credits Act is subject to a deduction by way of recovery of an overpayment of working tax credit or child tax credit which arose in a previous tax year the amount to be taken into account under paragraph (1) shall be the amount of working tax credit or child tax credit awarded less the amount of that deduction.

• (7) In paragraph (6), “tax year” means a period beginning with 6th April in one year and ending with 5th April in the next.

• (8) Paragraphs (9) and (9A) apply where—

• (a) a relevant payment has been made to a person in an academic year; and

• (b) that person abandons, or is dismissed from, his course of study before the payment to him of the final instalment of the relevant payment.

• (9) Where a relevant payment is made quarterly, the amount of a relevant payment to be taken into account for the assessment period for the purposes of paragraph (1) in respect of a person to whom paragraph (8) applies, shall be calculated by applying the formula—

$$A-(B×C)D$where—A = the total amount of the relevant payment which that person would have received had he remained a student until the last day of the academic term in which he abandoned, or was dismissed from, his course, less any deduction under regulation 51(5);B = the number of benefit weeks from the benefit week immediately following that which includes the first day of that academic year to the benefit week which includes the day on which the person abandoned, or was dismissed from, his course;C = the weekly amount of the relevant payment, before the application of the £10 disregard, which would have been taken into account as income under regulation 51(2) had the person not abandoned or been dismissed from, his course and, in the case of a person who was not entitled to council tax benefit immediately before he abandoned or was dismissed from his course, had that person, at that time, been entitled to housing benefit;D = the number of benefit weeks in the assessment period.$

• (9A) Where a relevant payment is made by two or more instalments in a quarter, the amount of a relevant payment to be taken into account for the assessment period for the purposes of paragraph (1) in respect of a person to whom paragraph (8) applies, shall be calculated by applying the formula in paragraph (9) but as if—

Athe total amount of relevant payments which that person received, or would have received, from the first day of the academic year to the day the person abandoned the course, or was dismissed from it, less any deduction under regulation 51(5).

• (10) In this regulation—

• “academic year” and “student loan” shall have the same meanings as for the purposes of Part 5;

• “assessment period” means—in a case where a relevant payment is made quarterly, the period beginning with the benefit week which includes the day on which the person abandoned, or was dismissed from, his course and ending with the benefit week which includes the last day of the last quarter for which an instalment of the relevant payment was payable to that person;in a case where the relevant payment is made by two or more instalments in a quarter, the period beginning with the benefit week which includes the day on which the person abandoned, or was dismissed from, his course and ending with the benefit week which includes—the day immediately before the day on which the next instalment of the relevant payment would have been due had the payments continued; orthe last day of the last quarter for which an instalment of the relevant payment was payable to that person,whichever of those dates is earlier;

• “quarter” in relation to an assessment period means a period in that year beginning on—1st January and ending on 31st March;1st April and ending on 30th June;1st July and ending on 31st August; or1st September and ending on 31st December;

• “relevant payment” means either a student loan or an amount intended for the maintenance of dependants referred to in regulation 46(7) or both.

• (11) For the avoidance of doubt there shall be included as income to be taken into account under paragraph (1)—

• (a) any payment to which regulation 25(2) (payments not earnings) applies; or

• (b) in the case of a claimant who is receiving support under section 95 or 98 of the Immigration and Asylum Act including support provided by virtue of regulations made under Schedule 9 to that Act, the amount of such support provided in respect of essential living needs of the claimant and his dependants (if any) as is specified in regulations made under paragraph 3 of Schedule 8 to the Immigration and Asylum Act.

Capital treated as income

31

• (1) Any capital payable by instalments which are outstanding at the date on which the claim is made or treated as made, or, at the date of any subsequent revision or supersession, shall, if the aggregate of the instalments outstanding and the amount of the claimant's capital otherwise calculated in accordance with Section 6 exceeds £16,000, be treated as income.

• (2) Any payment received under an annuity shall be treated as income.

• (3) Any earnings to the extent that they are not a payment of income shall be treated as income.

• (4) Any Career Development Loan paid pursuant to section 2 of the 1973 Act shall be treated as income.

• (5) Where an agreement or court order provides that payments shall be made to the claimant in consequence of any personal injury to the claimant and that such payments are to be made, wholly or partly, by way of periodic payments, any such periodic payments received by the claimant (but not a payment which is treated as capital by virtue of this Part), shall be treated as income.

Notional income

32

• (1) A claimant shall be treated as possessing income of which he has deprived himself for the purpose of securing entitlement to housing benefit or increasing the amount of that benefit.

• (2) Except in the case of—

• (a) a discretionary trust;

• (b) a trust derived from a payment made in consequence of a personal injury;

• (c) a personal pension scheme, occupational pension scheme... or a payment made by the Board of the Pension Protection Fund where the claimant has not attained the qualifying age for state pension credit;

• (d) any sum to which paragraph 47(2)(a) of Schedule 5 (capital to be disregarded) applies which is administered in the way referred to in paragraph 47(1)(a);

• (da) any sum to which paragraph 48(a) of Schedule 5 refers;

• (e) rehabilitation allowance made under section 2 of the 1973 Act;

• (f) child tax credit; or

• (g) working tax credit,

• (h) any sum to which paragraph (13) applies;

any income which would become available to the claimant upon application being made, but which has not been acquired by him, shall be treated as possessed by the claimant but only from the date on which it could be expected to be acquired were an application made.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) Any payment of income, other than a payment of income specified in paragraph (7), made—

• (a) to a third party in respect of a single claimant or a member of the family (but not a member of the third party's family) shall, where that payment is a payment of an occupational pension, a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fun be treated as possessed by that single claimant or, as the case may be, by that member;

• (b) to a third party in respect of a single claimant or in respect of a member of the family (but not a member of the third party's family) shall, where it is not a payment referred to in sub-paragraph (a), be treated as possessed by that single claimant or by that member to the extent that it is used for the food, ordinary clothing or footwear, household fuel or rent of that single claimant or, as the case may be, of any member of that family or is used for any council tax or water charges for which that claimant or member is liable;

• (c) to a single claimant or a member of the family in respect of a third party (but not in respect of another member of that family) shall be treated as possessed by that single claimant or, as the case may be, that member of the family to the extent that it is kept or used by him or used by or on behalf of any member of the family.

• (7) Paragraph (6) shall not apply in respect of a payment of income made—

• (a) under or by the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No. 2) Trust, the Fund, the Eileen Trust, MFET Limited, the Skipton Fund, the Caxton Foundation or the Independent Living Fund (2006);

• (b) pursuant to section 19(1)(a) of the Coal Industry Act 1994 (concessionary coal);

• (c) pursuant to section 2 of the 1973 Act in respect of a person's participation—

• (i) in an employment programme specified in regulation 75(1)(a)(ii) of the Jobseeker's Allowance Regulations;

• (ii) in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations;

• (iii) in the Intense Activity Period specified in regulation 75(1)(a)(iv) of those Regulations ...; ...

• (iv) in a qualifying course within the meaning specified in regulation 17A(7) of those Regulations; or

• (v) in the Flexible New Deal specified in regulation 75(1)(a)(v) of those Regulations;

• (cb) in respect of a person's participation in the Mandatory Work Activity Scheme;

• (cc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (cc) in respect of a claimant's participation in a scheme prescribed in regulation 3 of the Jobseeker's Allowance (Schemes for Assisting Persons to Obtain Employment) Regulations 2013;

• (d) under an occupational pension scheme, in respect of a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund where—

• (i) a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, in Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person's estate under section 41 of the Solicitors (Scotland) Act 1980 ;

• (ii) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

• (iii) the person referred to in (i) and any member of his family does not possess, or is not treated as possessing, any other income apart from that payment.

• (8) Where a claimant is in receipt of any benefit (other than council tax benefit) under the benefit Acts and the rate of that benefit is altered with effect from a date on or after 1st April in any year but not more than 14 days thereafter, the relevant authority shall treat the claimant as possessing such benefit at the altered rate from either 1st April or the first Monday in April in that year, whichever date the relevant authority shall select to apply in its area, to the date on which the altered rate is to take effect.

• (9) Subject to paragraph (10), where—

• (a) a claimant performs a service for another person; and

• (b) that person makes no payment of earnings or pays less than that paid for a comparable employment in the area,

the relevant authority shall treat the claimant as possessing such earnings (if any) as is reasonable for that employment unless the claimant satisfies the authority that the means of that person are insufficient for him to pay or to pay more for the service.

• (10) Paragraph (9) shall not apply—

• (a) to a claimant who is engaged by a charitable or voluntary organisation or who is a volunteer if the relevant authority is satisfied in any of those cases that it is reasonable for him to provide those services free of charge; or

• (b) in a case where the service is performed in connection with—

• (i) the claimant's participation in an employment or training programme in accordance with regulation 19(1)(q) of the Jobseeker's Allowance Regulations, other than where the service is performed in connection with the claimant's participation in the Intense Activity Period specified in regulation 75(1)(a)(iv) of those Regulations...; or

• (ii) the claimant's or the claimant's partner's participation in an employment or training programme as defined in regulation 19(3) of those Regulations for which a training allowance is not payable or, where such an allowance is payable, it is payable for the sole purpose of reimbursement of travelling or meal expenses to the person participating in that programme; or

• (c) to a claimant who is participating in a work placement approved by the Secretary of State (or a person providing services to the Secretary of State) before the placement starts.

• (10A) In paragraph (10)(c) “work placement” means practical work experience which is not undertaken in expectation of payment.

• (11) Where a claimant is treated as possessing any income under any of paragraphs (1) to (8), the foregoing provisions of this Part shall apply for the purposes of calculating the amount of that income as if a payment had actually been made and as if it were actual income which he does possess.

• (12) Where a claimant is treated as possessing any earnings under paragraph (9) the foregoing provisions of this Part shall apply for the purposes of calculating the amount of those earnings as if a payment had actually been made and as if they were actual earnings which he does possess except that paragraph (3) of regulation 26 (calculation of net earnings of employed earners) shall not apply and his net earnings shall be calculated by taking into account those earnings which he is treated as possessing, less—

• (a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings ... the basic rate of tax applicable to the assessment period less only the personal relief to which the claimant is entitled under sections 257(1) of the Income and Corporation Taxes Act 1988 (personal allowances) as is appropriate to his circumstances; but, if the assessment period is less than a year, the earnings to which the basic rate of tax is to be applied and the amount of the personal relief deductible under this sub-paragraph shall be calculated on a pro rata basis;

• (b) an amount equivalent to the amount of the primary Class 1 contributions that would be payable by him under the Act in respect of those earnings if such contributions were payable; and

• (c) one-half of any sum payable by the claimant by way of a contribution towards an occupational or personal pension scheme.

• (13) Paragraphs (1), (2), (6) and (9) shall not apply in respect of any amount of income other than earnings, or earnings of an employed earner, arising out of the claimant’s participation in a service user group.

SECTION 6 — Capital

Capital limit

33

For the purposes of section 134(1) of the Act as it applies to council tax benefit (no entitlement to benefit if capital exceeds prescribed amount), the prescribed amount is £16,000.

Calculation of capital

34

• (1) For the purposes of Part 7 of the Act as it applies to council tax benefit, the capital of a claimant to be taken into account shall, subject to paragraph (2), be the whole of his capital calculated in accordance with this Part and any income treated as capital under regulation 36 (income treated as capital).

• (2) There shall be disregarded from the calculation of a claimant's capital under paragraph (1), any capital, where applicable, specified in Schedule 5.

Disregard of capital of child and young person

35

The capital of a child or young person who is a member of the claimant's family shall not be treated as capital of the claimant.

Income treated as capital

36

• (1) Any bounty derived from employment to which paragraph 8 of Schedule 3 applies and paid at intervals of at least one year shall be treated as capital.

• (2) Any amount by way of a refund of income tax deducted from profits or emoluments chargeable to income tax under Schedule D or E shall be treated as capital.

• (3) Any holiday pay which is not earnings under regulation 25(1)(d) (earnings of employed earners) shall be treated as capital.

• (4) Except any income derived from capital disregarded under paragraphs 1, 2, 4, 8, 14, 25 to 28, 47 or 48 of Schedule 5, any income derived from capital shall be treated as capital but only from the date it is normally due to be credited to the claimant's account.

• (5) In the case of employment as an employed earner, any advance of earnings or any loan made by the claimant's employer shall be treated as capital.

• (6) Any charitable or voluntary payment which is not made or due to be made at regular intervals, other than a payment which is made under or by the Trusts, the Fund, the Eileen Trust, MFET Limited, the Skipton Fund, the Caxton Foundation the Independent Living Fund (2006) or the London Bombings Charitable Relief Fund, shall be treated as capital.

• (7) There shall be treated as capital the gross receipts of any commercial activity carried on by a person in respect of which assistance is received under the self-employment route, but only in so far as those receipts were payable into a special account ... during the period in which that person was receiving such assistance.

• (8) Any arrears of subsistence allowance which are paid to a claimant as a lump sum shall be treated as capital.

• (9) Any arrears of working tax credit or child tax credit shall be treated as capital.

Calculation of capital in the United Kingdom

37

Capital which a claimant possesses in the United Kingdom shall be calculated at its current market or surrender value less—

• (a) where there would be expenses attributable to the sale, 10 per cent; and

• (b) the amount of any encumbrance secured on it.

Calculation of capital outside the United Kingdom

38

Capital which a claimant possesses in a country outside the United Kingdom shall be calculated—

• (a) in a case where there is no prohibition in that country against the transfer to the United Kingdom of an amount equal to its current market or surrender value in that country, at that value;

• (b) in a case where there is such a prohibition, at the price which it would realise if sold in the United Kingdom to a willing buyer,

less, where there would be expenses attributable to sale, 10 per cent. and the amount of any encumbrances secured on it.

Notional capital

39

• (1) A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to council tax benefit or increasing the amount of that benefit except to the extent that that capital is reduced in accordance with regulation 40 (diminishing notional capital rule).

• (2) Except in the case of—

• (a) a discretionary trust; or

• (b) a trust derived from a payment made in consequence of a personal injury; or

• (c) any loan which would be obtained only if secured against capital disregarded under Schedule 5; or

• (d) a personal pension scheme, occupational pension scheme... or a payment made by the Board of the Pension Protection Fund; or

• (e) any sum to which paragraph 47(2)(a) of Schedule 5 (capital to be disregarded) applies which is administered in the way referred to in paragraph 47(1)(a); or

• (ea) any sum to which paragraph 48(a) of Schedule 5 refers; or

• (f) child tax credit; or

• (g) working tax credit,

any capital which would become available to the claimant upon application being made, but which has not been acquired by him, shall be treated as possessed by him but only from the date on which it could be expected to be acquired were an application made.

• (3) Any payment of capital, other than a payment of capital specified in paragraph (4), made—

• (a) to a third party in respect of a single claimant or a member of the family (but not a member of the third party's family) shall, where that payment is a payment of an occupational pension, a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund, be treated as possessed by that single claimant or, as the case may be, by that member;

• (b) to a third party in respect of a single claimant or in respect of a member of the family (but not a member of the third party's family) shall, where it is not a payment referred to in sub-paragraph (a), be treated as possessed by that single claimant or by that member to the extent that it is used for the food, ordinary clothing or footwear, household fuel or rent of that single claimant or, as the case may be, of any member of that family or is used for any council tax or water charges for which that claimant or member is liable;

• (c) to a single claimant or a member of the family in respect of a third party (but not in respect of another member of the family) shall be treated as possessed by that single claimant or, as the case may be, that member of the family to the extent that it is kept or used by him or used by or on behalf of any member of the family.

• (4) Paragraph (3) shall not apply in respect of a payment of capital made—

• (a) under or by any of the Trusts, the Fund, the Eileen Trust, MFET Limited the Independent Living Fund (2006), the Skipton Fund, the Caxton Foundation or the London Bombings Relief Charitable Fund;

• (b) pursuant to section 2 of the 1973 Act in respect of a person's participation—

• (i) in an employment programme specified in regulation 75(1)(a)(ii) of the Jobseeker's Allowance Regulations;

• (ii) in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations;

• (iii) in the Intense Activity Period specified in regulation 75(1)(a)(iv) of those Regulations...; ...

• (iv) in a qualifying course within the meaning specified in regulation 17A(7) of those Regulations; or

• (v) in the Flexible New Deal specified in regulation 75(1)(a)(v) of those Regulations;

• (bb) in respect of a person's participation in the Mandatory Work Activity Scheme;

• (bc) in respect of a claimant's participation in a scheme prescribed in regulation 3 of the Jobseeker's Allowance (Schemes for Assisting Persons to Obtain Employment) Regulations 2013;

• (bc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) under an occupational pension scheme, in respect of a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund where—

• (i) a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, in Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person's estate under section 41 of the Solicitors (Scotland) Act 1980;

• (ii) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

• (iii) the person referred to in (i) and any member of his family does not possess, or is not treated as possessing, any other income apart from that payment.

• (5) Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he may be treated as if he were such sole owner or partner and in such a case—

• (a) the value of his holding in that company shall, notwithstanding regulation 34 (calculation of capital) be disregarded; and

• (b) he shall, subject to paragraph (6), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Section shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.

• (6) For so long as the claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (5) shall be disregarded.

• (7) Where a claimant is treated as possessing capital under any of paragraphs (1) to (3) the foregoing provisions of this Section shall apply for the purposes of calculating its amount as if it were actual capital which he does possess.

Diminishing notional capital rule

40

• (1) Where a claimant is treated as possessing capital under regulation 39(1) (notional capital), the amount which he is treated as possessing—

• (a) in the case of a week that is subsequent to—

• (i) the relevant week in respect of which the conditions set out in paragraph (2) are satisfied; or

• (ii) a week which follows that relevant week and which satisfies those conditions,

shall be reduced by an amount determined under paragraph (3);

• (b) in the case of a week in respect of which paragraph (1)(a) does not apply but where—

• (i) that week is a week subsequent to the relevant week; and

• (ii) that relevant week is a week in which the condition in paragraph (4) is satisfied,

shall be reduced by the amount determined under paragraph (4).

• (2) This paragraph applies to a benefit week or part-week where the claimant satisfies the conditions that—

• (a) he is in receipt of council tax benefit; and

• (b) but for regulation 39(1), he would have received an additional amount of council tax benefit in that week.

• (3) In a case to which paragraph (2) applies, the amount of the reduction for the purposes of paragraph (1)(a) shall be equal to the aggregate of—

• (a) the additional amount to which sub-paragraph (2)(b) refers;

• (b) where the claimant has also claimed housing benefit, the amount of any housing benefit or any additional amount of that benefit to which he would have been entitled in respect of the whole or part of the benefit week to which paragraph (2) refers but for the application of regulation 49(1) of the Housing Benefit Regulations (notional capital);

• (c) where the claimant has also claimed income support, the amount of income support to which he would have been entitled in respect of the whole or part of the benefit week to which paragraph (2) refers but for the application of regulation 51(1) of the Income Support Regulations (notional capital); ...

• (d) where the claimant has also claimed a jobseeker's allowance, the amount of an income-based jobseeker's allowance to which he would have been entitled in respect of the whole or part of the benefit week to which paragraph (2) refers but for the application of regulation 113 of the Jobseeker's Allowance Regulations (notional capital) and

• (e) where the claimant has also claimed an employment and support allowance, the amount of an income-related employment and support allowance to which he would have been entitled in respect of the whole or part of benefit week to which paragraph (2) refers but for the application of regulation 115 of the Employment and Support Allowance Regulations (notional capital).

• (4) Subject to paragraph (5), for the purposes of paragraph (1)(b) the condition is that the claimant would have been entitled to council tax benefit in the relevant week but for regulation 39(1), and in such a case the amount of the reduction shall be equal to the aggregate of—

• (a) the amount of council tax benefit to which the claimant would have been entitled in the relevant week but for regulation 39(1); and for the purposes of this sub-paragraph if the amount is in respect of a part-week, that amount shall be determined by dividing the amount of council tax benefit to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7;

• (b) if the claimant would, but for regulation 49(1) of the Housing Benefit Regulations, have been entitled to housing benefit or to an additional amount of housing benefit in respect of the benefit week which includes the last day of the relevant week, the amount which is equal to—

• (i) in a case where no housing benefit is payable, the amount to which he would have been entitled; or

• (ii) in any other case, the amount equal to the additional amount of housing benefit to which he would have been entitled,

and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount shall be determined by dividing the amount of housing benefit to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7;

• (c) if the claimant would, but for regulation 51(1) of the Income Support Regulations , have been entitled to income support in respect of the benefit week, within the meaning of regulation 2(1) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount shall be determined by dividing the amount of the income support to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7; ...

• (d) if the claimant would, but for regulation 113 of the Jobseeker's Allowance Regulations, have been entitled to an income-based jobseeker's allowance in respect of the benefit week, within the meaning of regulation 1(3) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount shall be determined by dividing the amount of the income-based jobseeker's allowance to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7 and

• (e) if the claimant would, but for regulation 115 of the Employment and Support Allowance Regulations, have been entitled to an income-related employment and support allowance in respect of the benefit week, within the meaning of regulation 2(1) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount must be determined by dividing the amount of the income-related employment and support allowance to which he would have been so entitled by the number equal to the number of days in that part-week and multiplying the quotient so obtained by 7.

• (5) The amount determined under paragraph (4) shall be re-determined under that paragraph if the claimant makes a further claim for council tax benefit and the conditions in paragraph (6) are satisfied, and in such a case—

• (a) sub-paragraphs (a) to (d) of paragraph (4) shall apply as if for the words “relevant week” there were substituted the words “ relevant subsequent week ”; and

• (b) subject to paragraph (7), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.

• (6) The conditions are that—

• (a) a further claim is made 26 or more weeks after—

• (i) the date on which the claimant made a claim for council tax benefit in respect of which he was first treated as possessing the capital in question under regulation 39(1);

• (ii) in a case where there has been at least one re-determination in accordance with paragraph (5), the date on which he last made a claim for council tax benefit which resulted in the weekly amount being re-determined, or

• (iii) the date on which he last ceased to be entitled to council tax benefit,

whichever last occurred; and

• (b) the claimant would have been entitled to council tax benefit but for regulation 39(1).

• (7) The amount as re-determined pursuant to paragraph (5) shall not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount shall continue to have effect.

• (8) For the purposes of this regulation—

• (a) “part-week”—

• (i) in paragraph (4)(a) means a period of less than a week for which council tax benefit is allowed;

• (ii) in paragraph (4)(b) means a period of less than a week for which housing benefit is payable;

• (iii) in paragraph (4)(c), (d) and (e) means—

• (aa) a period of less than a week which is the whole period for which income support, an income-related employment and support allowance or, as the case may be, an income-based jobseeker's allowance is payable; and

• (bb) any other period of less than a week for which it is payable;

• (b) “relevant week” means the benefit week or part-week in which the capital in question of which the claimant has deprived himself within the meaning of regulation 39(1)—

• (i) was first taken into account for the purpose of determining his entitlement to council tax benefit; or

• (ii) was taken into account on a subsequent occasion for the purpose of determining or re-determining his entitlement to council tax benefit on that subsequent occasion and that determination or re-determination resulted in his beginning to receive, or ceasing to receive, council tax benefit;

and where more than one benefit week is identified by reference to heads (i) and (ii) of this sub-paragraph the later or latest such benefit week or, as the case may be, the later or latest such part-week;

• (c) “relevant subsequent week” means the benefit week or part-week which includes the day on which the further claim or, if more than one further claim has been made, the last such claim was made.

Capital jointly held

41

Except where a claimant possesses capital which is disregarded under regulation 39(5) (notional capital) where a claimant and one or more persons are beneficially entitled in possession to any capital asset they shall be treated as if each of them were entitled in possession to the whole beneficial interest therein in an equal share and the foregoing provisions of this Section shall apply for the purposes of calculating the amount of capital which the claimant is treated as possessing as if it were actual capital which the claimant does possess.

Calculation of tariff income from capital

42

• (1) Where the claimant's capital calculated in accordance with this Part exceeds £6,000, it shall be treated as equivalent to a weekly income of £1 for each complete £250 in excess of £6,000 but not exceeding £16,000.

• (2) Notwithstanding paragraph (1) where any part of the excess is not a complete £250 that part shall be treated as equivalent to a weekly tariff income of £1.

• (3) For the purposes of paragraph (1), capital includes any income treated as capital under regulation 36 (income treated as capital).

PART 5 — Students

SECTION 1 — General

Interpretation

43

• (1) In this Part—

• “academic year” means the period of twelve months beginning on 1st January, 1st April, 1st July or 1st September according to whether the course in question begins in the winter, the spring, the summer or the autumn respectively but if students are required to begin attending the course during August or September and to continue attending through the autumn, the academic year of the course shall be considered to begin in the autumn rather than the summer;

• “access funds” means—grants made under section 68 of the Further and Higher Education Act 1992 for the purpose of providing funds on a discretionary basis to be paid to students;grants made under sections 73(a) and (c) and 74(1) of the Education (Scotland) Act 1980 ;grants made under Article 30 of the Education and Libraries (Northern Ireland) Order 1993 or grants, loans or other payments made under Article 5 of the Further Education (Northern Ireland) Order 1997 in each case being grants, or grants, loans or other payments as the case may be, for the purpose of assisting students in financial difficulties;discretionary payments, known as “learner support funds”, which are made available to students in further education by institutions out of funds provided by the Young People’s Learning Agency for England under sections 61 and 62 of the Apprenticeships, Skills, Children and Learning Act 2009 Secretary of State under section 14 of the Education Act 2002 or section 100 of the Apprenticeships, Skills, Children and Learning Act 2009 under sections 100 and 101 of that Act the Apprenticeships, Skills, Children and Learning Act 2009; orFinancial Contingency Funds made available by the Welsh Ministers;

• “college of further education” means a college of further education within the meaning of Part 1 of the Further and Higher Education (Scotland) Act 1992 ;

• “contribution” means—any contribution in respect of the income of a student or any person which the Secretary of State, the Scottish Ministers or an education authority takes into account in ascertaining the amount of a student’s grant or student loan; orany sums, which in determining the amount of a student’s allowance or bursary in Scotland under the Education (Scotland) Act 1980, the Scottish Ministers or education authority takes into account being sums which the Scottish Ministers or education authority consider that it is reasonable for the following persons to contribute towards the holder’s expenses—the holder of the allowance or bursary;the holder’s parents;the holder’s parent’s spouse, civil partner or a person ordinarily living with the holder’s parent as if he or she were the spouse or civil partner of that parent; orthe holder’s spouse or civil partner;

• “course of study” means any course of study, whether or not it is a sandwich course and whether or not a grant is made for attending or undertaking it;

• “covenant income” means the gross income payable to a full-time student under a Deed of Covenant by his parent;

• “education authority” means a government department, a local authority as defined in section 579 of the Education Act 1996 (interpretation) a local education authority as defined in section 123 of the Local Government (Scotland) Act 1973 , an education and library board established under Article 3 of the Education and Libraries (Northern Ireland) Order 1986 , any body which is a research council for the purposes of the Science and Technology Act 1965 or any analogous government department, authority, board or body, of the Channel Islands, Isle of Man or any other country outside Great Britain;

• “full-time course of study” means a full-time course of study which—is not funded in whole or in part by the Young People’s Learning Agency for England Secretary of State under section 14 of the Education Act 2002, or under section 100 of the Apprenticeships, Children, Skills and Learning Act 2009 or by the Welsh Ministers or a full-time course of study which is not funded in whole or in part by the Scottish Ministers at a college of further education or a full-time course of study which is a course of higher education and is funded in whole or in part by the Scottish Ministers;is funded in whole or in part by the Young People’s Learning Agency for England Secretary of State under section 14 of the Education Act 2002, or under section 100 of the Apprenticeships, Skills, Children and Learning Act 2009 or by the Welsh Ministers if it involves more than 16 guided learning hours per week for the student in question, according to the number of guided learning hours per week for that student set out— in the case of a course funded by the Young People’s Learning Agency for England Secretary of State ..., in the student’s learning agreement signed on behalf of the establishment which is funded by the Secretary of State for the delivery of that course; or in the case of a course funded by the Welsh Ministers, in a document signed on behalf of the establishment which is funded by that Council for the delivery of that course; oris not higher education and is funded in whole or in part by the Scottish Ministers at a college of further education and involves—more than 16 hours per week of classroom-based or workshop-based programmed learning under the direct guidance of teaching staff according to the number of hours set out in a document signed on behalf of the college; or16 hours or less per week of classroom-based or workshop-based programmed learning under the direct guidance of teaching staff and it involves additional hours using structured learning packages supported by the teaching staff where the combined total of hours exceeds 21 hours per week, according to the number of hours set out in a document signed on behalf of the college;

• “full-time student” means a person attending or undertaking a full-time course of study and includes a student on a sandwich course;

• “grant” (except in the definition of “access funds”) means any kind of educational grant or award and includes any scholarship, studentship, exhibition, allowance or bursary but does not include a payment from access funds or any payment to which paragraph 12 of Schedule 4 or paragraph 53 of Schedule 5 applies;

• “grant income” means—any income by way of a grant;any contribution whether or not it is paid;

• “higher education” means higher education within the meaning of Part 2 of the Further and Higher Education (Scotland) Act 1992;

• “last day of the course” means—in the case of a qualifying course, the date on which the last day of that course falls or the date on which the final examination relating to that course is completed, whichever is the later;in any other case, the date on which the last day of the final academic term falls in respect of the course in which the student is enrolled;

• “period of study” means—in the case of a course of study for one year or less, the period beginning with the start of the course and ending with the last day of the course;in the case of a course of study for more than one year, in the first or, as the case may be, any subsequent year of the course, other than the final year of the course, the period beginning with the start of the course or, as the case may be, that year's start and ending with either— the day before the start of the next year of the course in a case where the student’s grant or loan is assessed at a rate appropriate to his studying throughout the year or, if he does not have a grant or loan, where a loan would have been assessed at such a rate had he had one; or in any other case, the day before the start of the normal summer vacation appropriate to his course;in the final year of a course of study of more than one year, the period beginning with that year's start and ending with the last day of the course;

• “periods of experience” means periods of work experience which form part of a sandwich course;

• “qualifying course” means a qualifying course as defined for the purposes of Parts 2 and 4 of the Jobseeker's Allowance Regulations;

• “sandwich course” has the meaning prescribed in regulation 2(9) of the Education (Student Support) Regulations 2008, regulation 4(2) of the Education (Student Loans) (Scotland) Regulations 2007 or regulation 2(8) of the Education (Student Support) Regulations (Northern Ireland) 2007, as the case may be;

• “standard maintenance grant” means—except where paragraph (b) or (c) applies, in the case of a student attending or undertaking a course of study at the University of London or an establishment within the area comprising the City of London and the Metropolitan Police District, the amount specified for the time being in paragraph 2(2)(a) of Schedule 2 to the Education (Mandatory Awards) Regulations 2003 (“the 2003 Regulations”) for such a student;except where paragraph (c) applies, in the case of a student residing at his parent's home, the amount specified in paragraph 3 thereof;in the case of a student receiving an allowance or bursary under the Education (Scotland) Act 1980, the amount of money specified as “standard maintenance allowance” for the relevant year appropriate for the student set out in the Student Support in Scotland Guide issued by the Student Awards Agency for Scotland, or its nearest equivalent in the case of a bursary provided by a college of further education or a local education authority ...;in any other case, the amount specified in paragraph 2(2) of Schedule 2 to the 2003 Regulations other than in sub-paragraph (a) or (b) thereof;

• “student” means a person, other than a person in receipt of a training allowance, who is attending or undertaking—a course of study at an educational establishment; ora qualifying course;

• “student loan” means a loan towards a student's maintenance pursuant to any regulations made under section 22 of the Teaching and Higher Education Act 1998 , section 73 of the Education (Scotland) Act 1980 or Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 and shall include, in Scotland, a young student's bursary paid under regulation 4(1)(c) of the Students’ Allowances (Scotland) Regulations 2007.

• (2) For the purposes of the definition of “full-time student” in paragraph (1), a person shall be regarded as attending or, as the case may be, undertaking a full-time course of study or as being on a sandwich course—

• (a) subject to paragraph (3), in the case of a person attending or undertaking a part of a modular course which would be a full-time course of study for the purposes of this Part, for the period beginning on the day on which that part of the course starts and ending—

• (i) on the last day on which he is registered with the educational establishment as attending or undertaking that part as a full-time course of study; or

• (ii) on such earlier date (if any) as he finally abandons the course or is dismissed from it;

• (b) in any other case, throughout the period beginning on the date on which he starts attending or undertaking the course and ending on the last day of the course or on such earlier date (if any) as he finally abandons it or is dismissed from it.

• (3) For the purposes of sub-paragraph (a) of paragraph (2), the period referred to in that sub-paragraph shall include—

• (a) where a person has failed examinations or has failed to successfully complete a module relating to a period when he was attending or undertaking a part of the course as a full-time course of study, any period in respect of which he attends or undertakes the course for the purpose of retaking those examinations or that module;

• (b) any period of vacation within the period specified in that paragraph or immediately following that period except where the person has registered with the educational establishment to attend or undertake the final module in the course and the vacation immediately follows the last day on which he is required to attend or undertake the course.

• (4) In paragraph (2), “modular course” means a course of study which consists of two or more modules, the successful completion of a specified number of which is required before a person is considered by the educational establishment to have completed the course.

Treatment of students

44

These Regulations shall have effect in relation to students subject to the following provisions of this Part.

Students who are excluded from entitlement to council tax benefit

45

• (1) Except to the extent that a student may be entitled to an alternative maximum council tax benefit by virtue of section 131(3) and (6) of the Act, a student to whom paragraph (2) applies is a person of a prescribed class for the purposes of section 131(3)(b) of the Act (persons excluded from entitlement to council tax benefit).

• (2) Subject to paragraph (3) and (7), this paragraph applies to a full-time student and students who are persons from abroad within the meaning of regulation 7 (persons from abroad).

• (3) Paragraph (2) shall not apply to a student—

• (a) who is a person on income support, an income-based jobseeker's allowance or an income-related employment and support allowance;

• (b) who is a lone parent;

• (c) whose applicable amount would, but for this regulation, include the disability premium or severe disability premium;

• (d) whose applicable amount would include the disability premium but for his being treated as capable of work by virtue of a determination made in accordance with regulations made under section 171E of the Act;

• (e) who is, or is treated as, incapable of work and has been so incapable, or has been so treated as incapable, of work in accordance with the provisions of, and regulations made under, Part 12A of the Act (incapacity for work) for a continuous period of not less than 196 days; and for this purpose any two or more separate periods separated by a break of not more than 56 days shall be treated as one continuous period;

• (ea) who has, or is treated as having, limited capability for work and has had, or been treated as having, limited capability for work in accordance with the Employment and Support Allowance Regulations for a continuous period of not less than 196 days, and for this purpose any two or more separate periods separated by a break of not more than 84 days must be treated as one continuous period.

• (f) who has a partner who is also a full-time student, if he or that partner is treated as responsible for a child or young person;

• (g) who is a single claimant with whom a child is placed by a local authority or voluntary organisation within the meaning of the Children Act 1989 or, in Scotland, boarded out within the meaning of the Social Work (Scotland) Act 1968 ;

• (h) who is—

• (i) aged under 21 and whose course of study is not a course of higher education;

• (ii) aged 21 and attained that age during a course of study which is not a course of higher education; or

• (iii) a qualifying young person or child within the meaning of section 142 of the Act (child and qualifying young person);

• (i) in respect of whom—

• (i) a supplementary requirement has been determined under paragraph 9 of Part 2 of Schedule 2 to the Education (Mandatory Awards) Regulations 2003;

• (ii) an allowance, or as the case may be, bursary has been granted which includes a sum under paragraph (1)(d) or regulation 4 of the Students' Allowances (Scotland) Regulations 1999 or, as the case may be, under paragraph (1)(d) of regulation 4 of the Education Authority (Bursaries) (Scotland) Regulations 1995, in respect of expenses incurred;

• (iii) a payment has been made under section 2 of the Education Act 1962 or under or by virtue of regulations made under the Teaching and Higher Education Act 1998;

• (iv) a grant has been made under regulation 13 of the Education (Student Support) Regulations 2005 or under regulation 13 of the Education (Student Support) Regulations (Northern Ireland) 2000; or

• (v) a supplementary requirement has been determined under paragraph 9 of Schedule 6 to the Students Awards Regulations (Northern Ireland) 1999 or a payment has been made under Article 50(3) of the Education and Libraries (Northern Ireland) Order 1986,

on account of his disability by reason of deafness.

• (3A) Paragraph (3)(h)(ii) only applies to a claimant until the end of the course during which the claimant attained the age of 21.

• (4) For the purposes of paragraph (3), once paragraph (3)(e) applies to a full-time student, if he then ceases, for a period of 56 days or less, to be incapable, or to be treated as incapable, of work, that paragraph shall, on his again becoming so incapable, or so treated as incapable, of work at the end of that period, immediately thereafter apply to him for so long as he remains incapable or is treated as remaining incapable, of work.

• (5) In paragraph (3)(h) the reference to a course of higher education is a reference to a course of any description mentioned in Schedule 6 to the Education Reform Act 1988 .

• (6) A full-time student to whom sub-paragraph (i) of paragraph (3) applies, shall be treated as satisfying that sub-paragraph from the date on which he made a request for the supplementary requirement, allowance, bursary or payment as the case may be.

• (7) Paragraph (2) shall not apply to a full-time student for the period specified in paragraph (8) if—

• (a) at any time during an academic year, with the consent of the relevant educational establishment, he ceases to attend or undertake a course because he is—

• (i) engaged in caring for another person; or

• (ii) ill;

• (b) he has subsequently ceased to be engaged in caring for that person or, as the case may be, he has subsequently recovered from that illness; and

• (c) he is not eligible for a grant or a student loan in respect of the period specified in paragraph (8).

• (8) The period specified for the purposes of paragraph (7) is the period, not exceeding one year, beginning on the day on which he ceased to be engaged in caring for that person or, as the case may be, the day on which he recovered from that illness and ending on the day before—

• (a) the day on which he resumes attending or undertaking the course; or

• (b) the day from which the relevant educational establishment has agreed that he may resume attending or undertaking the course,

whichever shall first occur.

SECTION 2 — Income

Calculation of grant income

46

• (1) The amount of a student's grant income to be taken into account shall, subject to paragraphs (2) and (3), be the whole of his grant income.

• (2) There shall be excluded from a student's grant income any payment—

• (a) intended to meet tuition fees or examination fees;

• (b) in respect of the student's disability;

• (c) intended to meet additional expenditure connected with term time residential study away from the student's educational establishment;

• (d) on account of the student maintaining a home at a place other than that at which he resides during his course;

• (e) on account of any other person but only if that person is residing outside of the United Kingdom and there is no applicable amount in respect of him;

• (f) intended to meet the cost of books and equipment;

• (g) intended to meet travel expenses incurred as a result of his attendance on the course;

• (h) intended for the child care costs of a child dependant.

• (i) of higher education bursary for care leavers made under Part III of the Children Act 1989.

• (3) Where a student does not have a student loan and is not treated as possessing such a loan, there shall be excluded from the student's grant income—

• (a) the sum of £303 per academic year in respect of travel costs; and

• (b) the sum of £390 per academic year towards the costs of books and equipment,

whether or not any such costs are incurred.

• (4) There shall also be excluded from a student’s grant income the grant for dependants known as the parents' learning allowance paid pursuant to regulations made under Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 or section 22 of the Teaching and Higher Education Act 1998.

• (5) Subject to paragraphs (6) and (7), a student's grant income shall be apportioned—

• (a) subject to paragraph (8), in a case where it is attributable to the period of study, equally between the weeks in that period beginning with the benefit week, the first day of which coincides with, or immediately follows, the first day of the period of study and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the period of study;

• (b) in any other case, equally between the weeks in the period beginning with the benefit week, the first day of which coincides with, or immediately follows, the first day of the period for which it is payable and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the period for which it is payable.

• (6) Any grant in respect of dependants paid under section 63(6) of the Health Services and Public Health Act 1968 (grants in respect of the provision of instruction to officers of hospital authorities) and any amount intended for the maintenance of dependants under Part 3 of Schedule 2 to the Education (Mandatory Awards) Regulations 2003 shall be apportioned equally over the period of 52 weeks or, if there are 53 benefit weeks (including part-weeks) in the year, 53.

• (7) In a case where a student is in receipt of a student loan or where he could have acquired a student loan by taking reasonable steps but had not done so, any amount intended for the maintenance of dependants to which neither paragraph (6) nor regulation 50(2) (other amounts to be disregarded) apply, shall be apportioned over the same period as the student's loan is apportioned or, as the case may be, would have been apportioned.

• (8) In the case of a student on a sandwich course, any periods of experience within the period of study shall be excluded and the student's grant income shall be apportioned equally between the weeks in the period beginning with the benefit week, the first day of which immediately follows the last day of the period of experience and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the period of study.

Calculation of covenant income where a contribution is assessed

47

• (1) Where a student is in receipt of income by way of a grant during a period of study and a contribution has been assessed, the amount of his covenant income to be taken into account for that period and any summer vacation immediately following shall be the whole amount of the covenant income less, subject to paragraph (3), the amount of the contribution.

• (2) The weekly amount of the student's covenant shall be determined—

• (a) by dividing the amount of income which falls to be taken into account under paragraph (1) by 52 or 53, whichever is reasonable in the circumstances; and

• (b) by disregarding from the resulting amount, £5.

• (3) For the purposes of paragraph (1), the contribution shall be treated as increased by the amount (if any) by which the amount excluded under regulation 46(2)(g) (calculation of grant income) falls short of the amount specified in paragraph 7(2) of Schedule 2 to the Education (Mandatory Awards) Regulations 2003 (travel expenditure).

Covenant income where no grant income or no contribution is assessed

48

• (1) Where a student is not in receipt of income by way of a grant the amount of his covenant income shall be calculated as follows—

• (a) any sums intended for any expenditure specified in regulation 46(2)(a) to (e) (calculation of grant income) necessary as a result of his attendance on the course shall be disregarded;

• (b) any covenant income, up to the amount of the standard maintenance grant, which is not so disregarded, shall be apportioned equally between the weeks of the period of study;

• (c) there shall be disregarded from the amount so apportioned the amount which would have been disregarded under regulation 46(2)(f) and (3) (calculation of grant income) had the student been in receipt of the standard maintenance grant; and

• (d) the balance, if any, shall be divided by 52 or 53 whichever is reasonable in the circumstances and treated as weekly income of which £5 shall be disregarded.

• (2) Where a student is in receipt of income by way of a grant and no contribution has been assessed, the amount of his covenanted income shall be calculated in accordance with sub-paragraphs (a) to (d) of paragraph (1), except that—

• (a) the value of the standard maintenance grant shall be abated by the amount of such grant income less an amount equal to the amount of any sums disregarded under regulation 46(2)(a) to (e); and

• (b) the amount to be disregarded under paragraph (1)(c) shall be abated by an amount equal to the amount of any sums disregarded under regulation 46(2)(f) and (g) and (3).

Relationship with amounts to be disregarded under Schedule 4

49

No part of a student's covenant income or grant income shall be disregarded under paragraph 15 of Schedule 4....

Other amounts to be disregarded

50

• (1) For the purposes of ascertaining income other than grant income, covenant income and loans treated as income in accordance with regulation 51, any amounts intended for any expenditure specified in regulation 46(2) (calculation of grant income), necessary as a result of his attendance on the course shall be disregarded but only if, and to the extent that, the necessary expenditure exceeds or is likely to exceed the amount of the sums disregarded under regulation 46(2) or (3), 47(3), 48(1)(a) or (c) or 51(5) (calculation of grant income, covenant income and treatment of student loans) on like expenditure.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of student loans

51

• (1) A student loan shall be treated as income.

• (2) In calculating the weekly amount of the loan to be taken into account as income—

• (a) in respect of a course that is of a single academic year's duration or less, a loan which is payable in respect of that period shall be apportioned equally between the weeks in the period beginning with—

• (i) except in a case where head (ii) applies, the benefit week, the first day of which coincides with, or immediately follows, the first day of the single academic year;

• (ii) where the student is required to start attending the course in August or where the course is less than an academic year's duration, the benefit week, the first day of which coincides with, or immediately follows, the first day of the course,

and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the course;

• (b) in respect of an academic year of a course which starts other than on 1st September, a loan which is payable in respect of that academic year shall be apportioned equally between the weeks in the period beginning with the benefit week, the first day of which coincides with or immediately follows, the first day of that academic year and ending with the benefit week, the last day of which coincides with or immediately precedes, the last day of that academic year but excluding any benefit weeks falling entirely within the quarter during which, in the opinion of the Secretary of State, the longest of any vacation is taken and for the purposes of this sub-paragraph, “quarter” shall have the same meaning as for the purposes of the Education (Student Support) Regulations 2005 ;

• (c) in respect of the final academic year of a course (not being a course of a single year's duration), a loan which is payable in respect of that final academic year shall be apportioned equally between the weeks in the period beginning with—

• (i) except in a case where head (ii) applies, the benefit week, the first day of which coincides with, or immediately follows, the first day of that academic year;

• (ii) where the final academic year starts on 1st September, the benefit week, the first day of which coincides with, or immediately follows, the earlier of 1st September or the first day of the autumn term,

and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the course;

• (d) in any other case, the loan shall be apportioned equally between the weeks in the period beginning with the earlier of—

• (i) the first day of the first benefit week in September; or

• (ii) the benefit week, the first day of which coincides with, or immediately follows the first day of the autumn term,

and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of June,

and, in all cases, from the weekly amount so apportioned there shall be disregarded £10.

• (3) A student shall be treated as possessing a student loan in respect of an academic year where—

• (a) a student loan has been made to him in respect of that year; or

• (b) he could acquire such a loan in respect of that year by taking reasonable steps to do so.

• (4) Where a student is treated as possessing a student loan under paragraph (3), the amount of the student loan to be taken into account as income shall be, subject to paragraph (5)—

• (a) in the case of a student to whom a student loan is made in respect of an academic year, a sum equal to—

• (i) the maximum student loan he is able to acquire in respect of that year by taking reasonable steps to do so; and

• (ii) any contribution whether or not it has been paid to him;

• (b) in the case of a student to whom a student loan is not made in respect of an academic year, the maximum student loan that would be made to the student if—

• (i) he took all reasonable steps to obtain the maximum student loan he is able to acquire in respect of that year; and

• (ii) no deduction in that loan was made by virtue of the application of a means test.

• (5) There shall be deducted from the amount of income taken into account under paragraph (4)—

• (a) the sum of £303 per academic year in respect of travel costs; and

• (b) the sum of £390 per academic year towards the cost of books and equipment,

whether or not any such costs are incurred.

Treatment of payments from access funds

52

• (1) This regulation applies to payments from access funds that are not payments to which regulation 55 (2) or (3) (income treated as capital) applies.

• (2) A payment from access funds, other than a payment to which paragraph (3) applies, shall be disregarded as income.

• (3) Subject to paragraph (4) of this regulation and paragraph 35 of Schedule 4, any payments from access funds which are intended and used for an item of food, ordinary clothing or footwear, household fuel, or rent of a single claimant or, as the case may be, of the claimant or any other member of his family and any payments from access funds which are used for any council tax or water charges for which that claimant or member is liable, shall be disregarded as income to the extent of £20 per week.

• (4) Where a payment from access funds is made—

• (a) on or after 1st September or the first day of the course, whichever first occurs, but before receipt of any student loan in respect of that year and that payment is intended for the purpose of bridging the period until receipt of the student loan; or

• (b) before the first day of the course to a person in anticipation of that person becoming a student,

that payment shall be disregarded as income.

Disregard of contribution

53

Where the claimant or his partner is a student and, for the purposes of assessing a contribution to the student's grant or student loan, the other partner's income has been taken into account, an amount equal to that contribution shall be disregarded for the purposes of assessing that other partner's income.

Further disregard of student's income

54

Where any part of a student's income has already been taken into account for the purposes of assessing his entitlement to a grant or student loan, the amount taken into account shall be disregarded in assessing that student's income.

Income treated as capital

55

• (1) Any amount by way of a refund of tax deducted from a student's covenant income shall be treated as capital.

• (2) An amount paid from access funds as a single lump sum shall be treated as capital.

• (3) An amount paid from access funds as a single lump sum which is intended and used for an item other than food, ordinary clothing or footwear, household fuel or rent, or which is used for an item other than any council tax or water charges for which that claimant or member is liable, shall be disregarded as capital but only for a period of 52 weeks from the date of the payment.

Disregard of changes occurring during summer vacation

56

In calculating a student's income the relevant authority shall disregard any change in the standard maintenance grant, occurring in the recognised summer vacation appropriate to the student's course, if that vacation does not form part of his period of study from the date on which the change occurred to the end of that vacation.

PART 6 — Amount of benefit

Maximum council tax benefit

57

• (1) Subject to paragraphs (2) to (4), the amount of a person's maximum council tax benefit in respect of a day for which he is liable to pay council tax, shall be 100 per cent. of the amount A/B where—

• (a) A is the amount set by the appropriate authority as the council tax for the relevant financial year in respect of the dwelling in which he is a resident and for which he is liable, subject to any discount which may be appropriate to that dwelling under the 1992 Act; and

• (b) B is the number of days in that financial year,

less any deductions in respect of non-dependants which fall to be made under regulation 58 (non-dependant deductions).

• (2) In calculating a person's maximum council tax benefit any reduction in the amount that person is liable to pay in respect of council tax, which is made in consequence of any enactment in, or made under, the 1992 Act, shall be taken into account.

• (3) Subject to paragraph (4), where a claimant is jointly and severally liable for council tax in respect of a dwelling in which he is resident with one or more other persons but excepting any person so residing with the claimant who is a student to whom regulation 45(2) (students who are excluded from entitlement to council tax benefit) applies, in determining the maximum council tax benefit in his case in accordance with paragraph (1), the amount A shall be divided by the number of persons who are jointly and severally liable for that tax.

• (4) Where a claimant is jointly and severally liable for council tax in respect of a dwelling with only his partner, paragraph (3) shall not apply in his case.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Non-dependant deductions

58

• (1) Subject to the following provisions of this regulation, the non-dependant deductions in respect of a day referred to in regulation 57 (maximum council tax benefit) shall be—

• (a) in respect of a non-dependant aged 18 or over in remunerative work, £9.90× 1/7;

• (b) in respect of a non-dependant aged 18 or over to whom sub-paragraph (a) does not apply, £3.30× 1/7.

• (2) In the case of a non-dependant aged 18 or over to whom paragraph (1)(a) applies, where it is shown to the appropriate authority that his normal gross weekly income is—

• (a) less than £183.00, the deduction to be made under this regulation shall be that specified in paragraph (1)(b);

• (b) not less than £183.00 but less than £316.00, the deduction to be made under this regulation shall be £6.55;

• (c) not less than £316.00 but less than £394.00, the deduction to be made under this regulation shall be £8.25.

• (3) Only one deduction shall be made under this regulation in respect of a couple or, as the case may be, members of a polygamous marriage and, where, but for this paragraph, the amount that would fall to be deducted in respect of one member of a couple or polygamous marriage is higher than the amount (if any) that would fall to be deducted in respect of the other, or any other, member, the higher amount shall be deducted.

• (4) In applying the provisions of paragraph (2) in the case of a couple or, as the case may be, a polygamous marriage, regard shall be had, for the purpose of that paragraph, to the couple's or, as the case may be, all members of the polygamous marriage's joint weekly gross income.

• (5) Where in respect of a day—

• (a) a person is a resident in a dwelling but is not himself liable for council tax in respect of that dwelling and that day;

• (b) other residents in that dwelling (the liable persons) have joint and several liability for council tax in respect of that dwelling and that day otherwise than by virtue of section 9 or 77 or 77A of the 1992 Act (liability of spouses and civil partners); and

• (c) the person to whom sub-paragraph (a) refers is a non-dependant of two or more of the liable persons,

the deduction in respect of that non-dependant shall be apportioned equally between those liable persons.

• (6) No deduction shall be made in respect of any non-dependants occupying a claimant's dwelling if the claimant or his partner is—

• (a) blind or treated as blind by virtue of paragraph 13 of Schedule 1 (additional condition for the disability premium); or

• (b) receiving in respect of himself either—

• (i) attendance allowance; or

• (ii) the care component of the disability living allowance.

• (7) No deduction shall be made in respect of a non-dependant if—

• (a) although he resides with the claimant, it appears to the relevant authority that his normal home is elsewhere; or

• (b) he is in receipt of a training allowance paid in connection with youth training established under section 2 of the 1973 Act or section 2 of the Enterprise and New Towns (Scotland) Act 1990; or

• (c) he is a full-time student within the meaning of Part 5 (Students); or

• (d) he is not residing with the claimant because he has been a patient for a period in excess of 52 weeks, and for these purposes—

• (i) “patient” has the meaning given in paragraph (6) of regulation 4C; and

• (ii) where a person has been a patient for two or more distinct periods separated by one or more intervals each not exceeding 28 days, he shall be treated as having been a patient continuously for a period equal in duration to the total of those distinct periods.

• (8) No deduction shall be made in respect of a non-dependant—

• (a) who is on income support, state pension credit, an income-based jobseeker's allowance or an income-related employment and support allowance; or

• (b) to whom Schedule 1 of the 1992 Act applies (persons disregarded for purposes of discount) but this sub-paragraph shall not apply to a non-dependant who is a student to whom paragraph 4 of that Schedule refers.

• (9) In the application of paragraph (2) there shall be disregarded from his weekly gross income—

• (a) any attendance allowance or disability living allowance received by him;

• (b) any payment made under or by the Trusts, the Fund, the Eileen Trust, MFET Limited, the Skipton Fund, the Caxton Foundation or the Independent Living Fund (2006) which had his income fallen to be calculated under regulation 30 (calculation of income other than earnings) would have been disregarded under paragraph 24 of Schedule 4 (income in kind); and

• (c) any payment which had his income fallen to be calculated under regulation 30 would have been disregarded under paragraph 36 of Schedule 4 (payments made under certain trusts and certain other payments).

Council tax benefit taper

59

The prescribed percentage for the purpose of sub-section (5)(c)(ii) of section 131 of the Act as it applies to council tax benefit, (percentage of excess of income over the applicable amount which is deducted from maximum council tax benefit), shall be 2 6/7 per cent.

Extended payments

60

• (1) A claimant who is entitled to council tax benefit (by virtue of the general conditions of entitlement) shall be entitled to an extended payment where—

• (a) the claimant or the claimant’s partner was entitled to a qualifying income-related benefit;

• (b) entitlement to a qualifying income-related benefit ceased because the claimant or the claimant’s partner—

• (i) commenced employment as an employed or self-employed earner;

• (ii) increased their earnings from such employment; or

• (iii) increased the number of hours worked in such employment,

and that employment is or, as the case may be, increased earnings or increased number of hours are expected to last five weeks or more; and

• (c) the claimant or the claimant’s partner had been entitled to and in receipt of a qualifying income-related benefit, jobseeker’s allowance or a combination of those benefits for a continuous period of at least 26 weeks before the day on which the entitlement to a qualifying income-related benefit ceased.

• (2) For the purpose of paragraph (1)(c), a claimant or a claimant’s partner is to be treated as having been entitled to and in receipt of a qualifying income-related benefit or jobseeker’s allowance during any period of less than five weeks in respect of which the claimant or the claimant’s partner was not entitled to any of those benefits because the claimant or the claimant’s partner was engaged in remunerative work as a consequence of their participation in an employment zone programme.

• (3) For the purpose of this regulation, where a claimant or a claimant’s partner is entitled to and in receipt of joint-claim jobseeker’s allowance they shall be treated as being entitled to and in receipt of jobseeker’s allowance.

• (4) A claimant must be treated as entitled to council tax benefit by virtue of the general conditions of entitlement where—

• (a) the claimant ceased to be entitled to council tax benefit because the claimant vacated the dwelling in which the claimant was resident;

• (b) the day on which the claimant vacated the dwelling was either in the week in which entitlement to a qualifying income-related benefit ceased, or in the preceding week; and

• (c) entitlement to the qualifying income-related benefit ceased in any of the circumstances listed in paragraph (1)(b).

• (5) This regulation shall not apply where, on the day before a claimant’s entitlement to income support ceased, regulation 6(5) of the Income Support Regulations (remunerative work: housing costs) applied to that claimant.

Extended payments (severe disablement allowance and incapacity benefit)

61

• (1) A claimant who is entitled to council tax benefit (by virtue of the general conditions of entitlement) shall be entitled to an extended payment (qualifying contributory benefits) where—

• (a) the claimant or the claimant’s partner was entitled to a qualifying contributory benefit;

• (b) entitlement to a qualifying contributory benefit ceased because the claimant or the claimant’s partner—

• (i) commenced employment as an employed or self-employed earner;

• (ii) increased their earnings from such employment; or

• (iii) increased the number of hours worked in such employment,

and that employment is or, as the case may be, increased earnings or increased number of hours are expected to last five weeks or more;

• (c) the claimant or the claimant’s partner had been entitled to and in receipt of a qualifying contributory benefit or a combination of qualifying contributory benefits for a continuous period of at least 26 weeks before the day on which the entitlement to a qualifying contributory benefit ceased; and

• (d) the claimant or the claimant’s partner was not entitled to and not in receipt of a qualifying income-related benefit in the last benefit week in which the claimant, or the claimant’s partner, was entitled to a qualifying contributory benefit.

• (2) A claimant must be treated as entitled to council tax benefit by virtue of the general conditions of entitlement where—

• (a) the claimant ceased to be entitled to council tax benefit because the claimant vacated the dwelling in which the claimant was resident;

• (b) the day on which the claimant vacated the dwelling was either in the week in which entitlement to a qualifying contributory benefit ceased, or in the preceding week; and

• (c) entitlement to the qualifying contributory benefit ceased in any of the circumstances listed in paragraph (1)(b).