The Income Support (General) Regulations 1987

Income treated as capital

48.—(1) Any annual bounty derived from employment to which paragraph 7 of Schedule 8 applies shall be treated as capital.

(2) Except in the case of an amount to which section 23(5) (a) (ii) of the Act (refund of tax in trade disputes cases) applies, 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 35(1) (d) (earnings of employed earners) shall be treated as capital.

(4) Except any income derived from capital disregarded under paragraph 1, 2, 4, 6, or 12 of Schedule 10, 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) Subject to paragraph (6), 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) For so long as section 23 of the Act (trade disputes) applies to a person, paragraph (5) shall not apply to him and, if he is a person to whom sub-section (8) of that section applies, that paragraph shall not apply until the end of the period specified in that sub-section.

(7) Any payment under section 30 of the Prison Act 1952(1) (payments for discharged prisoners) or allowance under section 17 of the Prisons (Scotland) Act 1952(2) (allowances to prisoners on discharge) shall be treated as capital.

(8) Any payment made by a local authority which represents arrears of payments under section 34 (6) or, as the case may be, section 50 of the Children Act 1975(3) (contributions to a custodian towards the cost of accommodation and maintenance of a child) shall be treated as capital.