Capital treated as income
41.—(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.