The Housing Benefit (Community Charge Rebates) (Scotland) Regulations 1988

• Citation: S.I. 1988/1890
• Sections: 210

Section 1 Citation, commencement and application

(1) These Regulations may be cited as the Housing Benefit (Community Charge Rebates) (Scotland) Regulations 1988 and shall come into force for the purposes of regulations 1, 58 to 63 (claims) and 90 (exchange of information) on 23rd November 1988 and for all other purposes on 1st April 1989.

(2) These Regulations apply in relation to housing benefit in the form of a community charge rebate to which section 28(1)(aa) of the Act refers and accordingly–

(a) save in regulations 25(3)(a), 33(3)(a), 60(a) and 90(1), in Schedule 3 paragraphs 35 and 36 and in Schedule 4 paragraphs 28 and 34 , any reference in these Regulations to housing benefit is a reference only to housing benefit in that form; and

(b) the Housing Benefit (General) Regulations 1987 and, save as provided in regulation 90 of these Regulations, the Housing Benefit (Supply of Information) Regulations 1988 shall not apply to housing benefit in that form and any reference to housing benefit excludes, save as so provided, a reference to housing benefit in that form.

Section 2 Interpretation

(1) In these Regulations, unless the context otherwise requires–

“the Act” means the Social Security Act 1986;

“the 1987 Act ” means the Abolition of Domestic Rates Etc (Scotland) Act 1987 ;

“appropriate authority” means the appropriate levying authority to which section 28(3A) of the 1986 Act refers ;

“appropriate social security office” means an office of the Department of Social Security which is normally open to the public for the receipt of claims for income support and includes an office of the Department of Employment which is normally open to the public for the receipt of claims for unemployment benefit;

“assessment period” means such period as is prescribed in regulations 12 to 14 over which income falls to be calculated;

“attendance allowance” means–

an attendance allowance under section 35 of the Social Security Act ;

an increase of disablement pension under section 61 of that Act ;

a payment under regulations made in exercise of the power conferred by section 159(3)(b) of that Act;

an increase of an allowance which is payable in respect of constant attendance under section 5 of the Industrial Injuries and Diseases (Old Cases) Act 1975 ;

a payment by virtue of article 14, 15, 16, 43 or 44 of the Personal Injuries (Civilians) Scheme 1983 or any analogous payment;

any payment based on need for attendance which is paid as part of a war disablement pension;

“benefit period” has the meaning given to it in regulation 53;

“benefit week” means a period of 7 consecutive days commencing on a Monday and ending on a Sunday;

“child” means a person under the age of 16;

“claim” means a claim for housing benefit in the form of a community charge rebate;

“claimant” means a person claiming housing benefit in the form of a community charge rebate;

“collective community charge contribution” means a payment to which section 11(11) of the 1987 Act refers;

“concessionary payment” means a payment made under arrangements made by the Secretary of State with the consent of the Treasury which is charged either to the National Insurance Fund or to a Departmental Expenditure Vote to which payments of benefit under the Act, the Social Security Act or the Child Benefit Act 1975 are charged;

“designated office” means the office designated by the appropriate authority, by way of notice upon a form approved by them for the purpose of claiming housing benefit, for the receipt of claims to housing benefit;

“earnings” has the meaning prescribed in regulation 18 or, as the case may be, 20;

“employed earner” is to be construed in accordance with section 2(1)(a) of the Social Security Act;

“family” has the meaning assigned to it by section 20(11) of the Act;

“housing benefit”, is to be construed in accordance with regulation1(2)(a);

“invalid carriage or other vehicle” means a vehicle propelled by a petrol engine or by electric power supplied for use on the road and to be controlled by the occupant;

“lone parent” means a person who is not a partner and who is responsible for and a member of the same household as a child or young person;

“married couple” has the meaning assigned to it by section 20(11) of the Act;

“member of a couple” means a member of a married or unmarried couple;

“mobility allowance” means an allowance under section 37A of the Social Security Act ;

“mobility supplement” means a supplement to which paragraph 7 of Schedule 3 refers;

“net earnings” means such earnings as are calculated in accordance with regulation 19;

“net profit” means such profit as is calculated in accordance with regulation 21;

“non-dependant” means a person to whom regulation 3 of the Housing Benefit (General) Regulations 1987 refers;

“occupational pension” means any pension or other periodical payment under an occupational pension scheme but does not include any discretionary payment out of a fund established for relieving hardship in particular cases;

“partner” means–

where a claimant is a member of a married or unmarried couple, the other member of that couple; or

where a claimant is polygamously married to two or more members of his household, any such member to whom he is so married;

“payment” includes part of a payment;

“person affected” means any person (including the appropriate authority) whose rights, duties or obligations are affected by a determination, whether or not on review, or by a decision on further review;

“person on income support” means a person in receipt of income support;

“policy of life insurance” means any instrument by which the payment of money is assured on death (except death by accident only) or by the happening of any contingency dependent on human life, or any instrument evidencing a contract which is subject to payment of premiums for a term dependent on human life;

“polygamous marriage” means any marriage to which section 28(11) of the Act refers ;

“registered student” means a student who does not satisfy the condition of entitlement for housing benefit in respect of a personal community charge in section 20(7A) of the Act because his name is shown in a community charges register as undertaking a full time course of education on any day in respect of which housing benefit is claimed;

“remunerative work” has the meaning prescribed in regulation 3;

“self-employed earner” is to be construed in accordance with section 2(1)(b) of the Social Security Act;

“single claimant” means a claimant who neither has a partner nor is a lone parent;

“Social Security Act” means the Social Security Act 1975 ;

“student” has the meaning prescribed in regulation 36;

“the Independent Living Fund” means the charitable trust established out of funds provided by the Secretary of State for the purpose of providing financial assistance to those persons incapacitated by or otherwise suffering from very severe disablement who are in need of such assistance to enable them to live independently;

“the Macfarlane (Special Payments) Trust” means the trust of that name, established on 29th January 1990 partly out of funds provided by the Secretary of State, for the benefit of certain persons suffering from haemophilia;

“the Macfarlane Trust” means the charitable trust, established partly out of funds provided by the Secretary of State to the Haemophilia Society , for the relief of poverty or distress among those suffering from haemophilia;

“unmarried couple” has the meaning assigned to it by section 20(11) of the Act;

“year of assessment” has the meaning prescribed in section 832(1) of the Income and Corporation Taxes Act 1988 ;

“young person” has the meaning prescribed in regulation 4(1).

(2) In Schedule 4 references to a claimant occupying a dwelling or premises as his home shall be construed in accordance with regulation 5 of the Housing Benefit (General) Regulations 1987.

(3) In these Regulations, unless the context otherwise requires, a reference–

(a) to a numbered Part is to the Part of these Regulations bearing that number;

(b) to a numbered regulation or Schedule is to the regulation in, or the Schedule to, these Regulations bearing that number;

(c) in a regulation or Schedule to a numbered paragraph is to the paragraph in that regulation or Schedule bearing that number;

(d) in a paragraph to a lettered or numbered sub-paragraph is to the sub-paragraph in that paragraph bearing that letter or number.

Section 3 Remunerative work

(1) Subject to the following provisions of this regulation, a person shall be treated for the purposes of these Regulations as engaged in remunerative work if he is engaged, or, where his hours of work fluctuate, he is engaged on average, for not less than 24 hours a week, in work for which payment is made or which is done in expectation of payment.

(2) In determining the number of hours for which a person is engaged in work where his hours of work fluctuate, regard shall be had to the average of hours worked over–

(a) if there is a recognisable cycle of work, the period of one complete cycle (including, where the cycle involves periods in which the person does no work, those periods but disregarding any other absences);

(b) in any other case, the period of 5 weeks immediately prior to the date of claim, or such other length of time as may, in the particular case, enable the person’s weekly average hours of work to be determined more accurately.

(3) Where no recognisable cycle has been established in respect of a person’s work, regard shall be had to the number of hours or, where those hours will fluctuate, the average of the hours, which he is expected to work in a week.

(4) A person shall be treated as engaged in remunerative work during any period for which he is absent from work referred to in paragraph (1) if the absence is either without good cause or by reason of a recognised, customary or other holiday.

(5) A person on income support for more than 3 days in any benefit week shall be treated as not being in remunerative work in that week.

Section 4 Persons of prescribed description

(1) Subject to paragraph (2), a person of a prescribed description for the purposes of section 20(11) of the Act (definition of family) as it applies to housing benefit is a person aged 16 or over but under 19 who is treated as a child for the purposes of section 2 of the Child Benefit Act 1975 (meaning of child), and in these Regulations such a person is referred to as a “young person”.

(2) Paragaph (1) shall not apply to a person who is on income support.

Section 5 Circumstances in which a person is to be treated as responsible or not responsible for another

(1) Subject to the following provisions of this regulation a person shall be treated as responsible for a child or young person who is normally living with him.

(2) Where a child or young person spends equal amounts of time in different households, or where there is a question as to which household he is living in, the child or young person shall be treated for the purposes of paragraph (1) as normally living with–

(a) the person who is receiving child benefit in respect of him; or

(b) if there is no such person–

(i) where only one claim for child benefit has been made in respect of him, the person who made that claim, or

(ii) in any other case, the person who has the primary responsibility for him.

(3) For the purposes of these Regulations, a child or young person shall be the responsibility of only one person in any benefit week and any person other than the one treated as responsible for the child or young person under this regulation shall be treated as not so responsible.

Section 6 Circumstances in which a person is to be treated as being or not being a member of the household

(1) Subject to paragraphs (2) and (3), the claimant and any partner and, where the claimant or his partner is treated as responsible by virtue of regulation 5 (circumstances in which a person is to be treated as responsible or not responsible for another) for a child or young person, that child or young person and any child of that child or young person shall be treated as members of the same household notwithstanding that any of them is temporarily absent from that household.

(2) A child or young person shall not be treated as a member of the claimant’s household where he is–

(a) boarded out with the claimant or his partner under a relevant enactment; or

(b) boarded out with the claimant or his partner prior to adoption; or

(c) placed for adoption with the claimant or his partner pursuant to a decision under the Adoption Agencies Regulations 1983 or the Adoption Agencies (Scotland) Regulations 1984 .

(3) Subject to paragraph (4), paragraph (1) shall not apply to a child or young person who is not living with the claimant and–

(a) is in the care of a local authority under a relevant enactment; or

(b) has been boarded out with a person other than the claimant prior to adoption; or

(c) has been placed for adoption pursuant to a decision under the Adoption Agencies Regulations 1983 or the Adoption Agencies (Scotland) Regulations 1984.

(4) An authority shall treat a child or young person to whom paragraph (3)(a) applies as being a member of the claimant’s household in any benefit week where–

(a) that child or young person lives with the claimant for part or all of that benefit week; and

(b) the authority considers that it is reasonable to do so taking into account the nature and frequency of that child’s or young person’s visits.

(5) In this regulation “relevant enactment” means the Army Act 1955 , the Air Force Act 1955 , the Naval Discipline Act 1957 , the Adoption Act 1958 , the Matrimonial Proceedings Children Act 1958 , the Children Act 1958 , the Social Work (Scotland) Act 1968 , the Family Law Reform Act 1969 , the Children and Young Persons Act 1969 , the Matrimonial Causes Act 1973 , the Guardianship Act 1973 , the Children Act 1975 , the Domestic Proceedings and Magistrates' Courts Act 1978 , the Adoption (Scotland) Act 1978 , the Child Care Act 1980 and the Foster Children Act 1980 .

Section 7 Applicable amounts

(1) Subject to regulations 8, 9 and 56 (polygamous marriages, patients and calculation of weekly amounts) a claimant’s weekly applicable amount shall be the aggregate of such of the following amounts as may apply in his case–

(a) an amount in respect of himself or, if he is a member of a couple, an amount in respect of both of them, determined in accordance with paragraph 1(1), (2) or (3), as the case may be, of Schedule 1;

(b) an amount determined in accordance with paragraph 2 of Schedule 1 in respect of any child or young person who is a member of his family, except a child or young person whose capital, if calculated in accordance with Chapter VI of Part IV (income and capital) in like manner as for the claimant, except where otherwise provided, would exceed £3,000;

(c) if he is a member of a family of which at least one member is a child or young person, an amount determined in accordance with Part II of Schedule 1 (family premium);

(d) the amount of any premiums which may be applicable to him determined in accordance with Parts III and IV of Schedule 1 (premiums).

Section 8 Polygamous marriages

Subject to regulations 9 (patients) and 56 (calculation of weekly amounts) where a claimant is a member of a polygamous marriage, his weekly applicable amount shall be the aggregate of such of the following amounts as may apply in his case–

(a) the highest amount applicable to him and one of his partners determined in accordance with paragraph 1(3) of Schedule 1 (applicable amounts) as if he and that partner were a couple;

(b) an amount equal to the difference between the amounts specified in sub-paragraphs (3) and (1)(b) of paragraph 1 of Schedule 1 in respect of each of his other partners;

(c) an amount determined in accordance with paragraph 2 of Schedule 1 in respect of any child or young person for whom he or a partner of his is responsible and who is a member of the same household, except a child or young person whose capital, if calculated in accordance with Chapter VI of Part IV (income and capital) in like manner as for the claimant except where otherwise provided, would exceed £3,000;

(d) if he or another partner of the polygamous marriage is responsible for a child or young person who is a member of the same household, the amount specified in Part II of Schedule 1 (family premium);

(e) the amount of any premiums which may be applicable to him determined in accordance with Parts III and IV of Schedule 1 (premiums).

Section 9 Patients

(1) Subject to regulation 56 (calculation of weekly amounts), where a person has been a patient for a period of more than 6 weeks–

(a) in the case of a single claimant, his applicable amount shall be £8.70 ;

(b) in the case of a lone parent, his applicable amount shall be £8.70 plus any amount applicable to him under regulation 7(b) or (c) or (d) (applicable amounts) by virtue of his satisfying the condition specified in paragraph 8 or 14 of Schedule 1;

(c) in the case of a married or unmarried couple–

(i) where the other member is not a patient, or has not been a patient for more than six weeks, his or, if he is not the claimant, the claimant’s applicable amount shall be the amount applicable under regulation 7 (applicable amounts) reduced by £8.70 ,

(ii) where the other member has also been a patient for more than six weeks, his or, as the case may be, the claimant’s applicable amount shall be £17.40 plus any amounts applicable under regulation 7(b) or (c) or (d) by virtue of his satisfying the condition specified in paragraph 14 of Schedule 1;

(d) if he is polygamously married–

(i) where at least one member of the polygamous marriage is not a patient, or has not been a patient for more than six weeks, the applicable amount under regulation 8 (polygamous marriages) shall be reduced by £8.70 in respect of each member who is a patient,

(ii) where all members of a polygamous marriage have been patients for more than six weeks, the applicable amount shall be £8.70 in respect of each member plus any amounts applicable under regulation 8(c) or (d) or (e) by virtue of his satisfying the condition specified in paragraph 14 of Schedule 1.

(2) In paragraph (1), “patient” means a person (other than a person who is serving a sentence of imprisonment or detention in a youth custody institution) who is regarded as receiving free in-patient treatment within the meaning of the Social Security (Hospital In-Patients) Regulations 1975 .

(3) For the purposes of calculating the period of 6 weeks referred to in paragraph (1), where a person has been maintained free of charge while undergoing medical or other treatment as an in-patient in a hospital or similar institution for two or more distinct periods separated by one or more intervals each not exceeding 28 days, he shall be treated as having been so maintained for a period equal in duration to the total of those distinct periods.

Section 10 Calculation of income and capital of members of claimant’s family and of a polygamous marriage

(1) The income and capital of a claimant’s partner and, subject to paragraph (2) and to regulation 26 (modifications in respect of child and young person), the income of a child or young person which by virtue of section 22(5) of the Act is to be treated as income and capital of the claimant, shall be calculated or estimated in accordance with the following provisions of this Part in like manner as for the claimant; and any reference to the “claimant” shall, except where the context otherwise requires, be construed for the purposes of this Part as if it were a reference to his partner or that child or young person.

(2) Regulations 19(2) and 21(2), so far as they relate to paragraphs 1 to 10 of Schedule 2 (sums to be disregarded in the calculation of earnings), and regulation 24(1) (capital treated as income) shall not apply to a child or young person.

(3) Where a claimant or the partner of a claimant is married polygamously to two or more members of his household–

(a) the claimant shall be treated as possessing capital and income belonging to each such member and the income of any child or young person who is one of that member’s family; and

(b) the income and capital of that member or, as the case may be, the income of that child or young person shall be calculated in accordance with the following provisions of this Part in like manner as for the claimant or, as the case may be, as for any child or young person who is a member of his family.

Section 11 Calculation of income on a weekly basis

(1) Subject to regulations 16 (disregard of changes in tax, contributions etc ), and 56 (calculation of weekly amounts) for the purposes of section 20(7)(c) of the Act (conditions of entitlement to housing benefit) the income of a claimant shall be calculated–

(a) by estimating the amount which is likely to be his average weekly income over the benefit period in accordance with this Chapter and Chapters III to V of this Part; and

(b) by adding to that amount the weekly income calculated under regulation 35 (calculation of tariff income from capital).

(2) For the purposes of paragraph (1) “income” includes income derived under regulations 24 and 25 (capital treated as income and notional income).

Section 12 Average weekly earnings of employed earners

(1) Where a claimant’s income consists of earnings from employment as an employed earner his average weekly earnings shall be estimated by reference to his earnings from that employment–

(a) over a period immediately preceding the benefit week in which the claim is made or treated as made and being a period of–

(i) 5 weeks, if he is paid weekly, or

(ii) 2 months, if he is paid monthly; or

(b) whether or not sub-paragraph (a)(i) or (ii) applies, where a claimant’s earnings fluctuate, over such other period preceding the benefit week in which the claim is made or treated as made as may, in any particular case, enable his average weekly earnings over the benefit period to be estimated more accurately.

(2) Where the claimant has been in his employment for less than the period specified in paragraph (1)(a)(i) or (ii)–

(a) if he has received any earnings for the period that he has been in that employment and those earnings are likely to represent his average weekly earnings from that employment his average weekly earnings shall be estimated by reference to those earnings;

(b) in any other case, the appropriate authority shall require the claimant’s employer to furnish an estimate of the claimant’s likely weekly earnings over such period as the appropriate authority may require and the claimant’s average weekly earning shall be estimated by reference to that estimate.

(3) Where the amount of a claimant’s earnings changes during a benefit period the appropriate authority shall estimate his average weekly earnings by reference to his likely earnings from the employment over the remainder of the benefit period.

(4) For the purposes of this regulation the claimant’s earnings shall be calculated in accordance with Chapter III of this Part.

Section 13 Average weekly earnings of self-employed earners

(1) Where a claimant’s income consists of earnings from employment as a self-employed earner his average weekly earnings shall be estimated by reference to his earnings from that employment over such period as is appropriate in order that his average weekly earnings over the benefit period may be estimated accurately but the length of the period shall not in any case exceed 52 weeks.

(2) For the purposes of this regulation the claimant’s earnings shall be calculated in accordance with Chapter IV of this Part.

Section 14 Average weekly income other than earnings

(1) A claimant’s income which does not consist of earnings shall, except where paragraph (2) ... applies, be estimated over such period as is appropriate in order that his average weekly income over the benefit period may be estimated accurately but the length of the period shall not in any case exceed 52 weeks; and nothing in this paragraph shall authorise an authority to disregard any such income other than that specified in Schedule 3.

(2) The period over which any benefit under the benefit Acts is to be taken into account shall be the period in respect of which that benefit is payable.

(3) For the purposes of this regulation income other than earnings shall be calculated in accordance with Chapter V of this Part.

Section 15 Calculation of weekly income

For the purposes of regulations 12 to 14 (average weekly income), where the period in respect of which a payment is made–

(a) does not exceed a week, the weekly amount shall be the amount of that payment;

(b) exceeds a week, the weekly amount shall be determined–

(i) in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52,

(ii) in any other case, by dividing the amount of the payment by the number equal to the number of days in the period to which it relates and multiplying the quotient by 7.

Section 16 Disregard of changes in tax, contributions etc

In calculating the claimant’s income the appropriate authority may disregard any legislative change–

(a) in the basic or other rates of income tax;

(b) in the amount of any personal tax relief;

(c) in the rates of social security contributions payable under the Social Security Act or in the lower earnings limit or weekly earnings figures for Class 1 contributions under that Act;

(d) in the amount of tax payable as a result of an increase in the weekly rate of Category A, B, C or D retirement pension or any addition thereto or any graduated pension payable under that Act, for a period not exceeding 30 benefit weeks beginning with the benefit week immediately following the date from which the change is effective.

Section 17 Treatment of charitable or voluntary payments

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Section 18 Earnings of employed earners

(1) Subject to paragraph (2), “earnings” means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes–

(a) any bonus or commission;

(b) any payment in lieu of remuneration except any periodic sum paid to a claimant on account of the termination of his employment by reason of redundancy;

(c) any payment in lieu of notice or any lump sum payment intended as compensation for the loss of employment but only in so far as it represents loss of income;

(d) any holiday pay except any payable more than 4 weeks after termination or interruption of the employment;

(e) any payment by way of a retainer;

(f) any payment made by the claimant’s employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the claimant’s employer in respect of–

(i) travelling expenses incurred by the claimant between his home and place of employment,

(ii) expenses incurred by the claimant under arrangements made for the care of a member of his family owing to the claimant’s absence from home;

(g) any award of compensation made under section 68(2) or 71(2)(a) of the Employment Protection (Consolidation) Act 1978 (remedies and compensation for unfair dismissal);

(h) any such sum as is referred to in section 18(2) of the Social Security (Miscellaneous Provisions) Act 1977 (certain sums to be earnings for social security purposes);

(i) any statutory sick pay under Part I of the Social Security and Housing Benefits Act 1982 or statutory maternity pay under Part V of the Act.

(2) Earnings shall not include–

(a) any payment in kind;

(b) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

(c) any occupational pension.

Section 19 Calculation of net earnings of employed earners

(1) For the purposes of regulation 12 (average weekly earnings of employed earners), the earnings of a claimant derived or likely to be derived from employment as an employed earner to be taken into account shall, subject to paragraph (2), be his net earnings.

(2) There shall be disregarded from a claimant’s net earnings any sum, where applicable, specified in paragraphs 1 to 11 of Schedule 2.

(3) For the purposes of paragraph (1) net earnings shall, except where paragraph (4) applies, be calculated by taking into account the gross earnings of the claimant from that employment over the assessment period, less–

(a) any amount deducted from those earnings by way of–

(i) income tax,

(ii) primary Class 1 contributions under the Social Security Act ; and

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

(4) Where the earnings of a claimant are estimated under paragraph (2) of regulation 12 (average weekly earnings of employed earners), his net earnings shall be calculated by taking into account those earnings over the assessment period, less–

(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the basic rate of tax in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 257(1), (6) and (7) and 259(1)(a) and (2) of the Income and Corporation Taxes Act 1988 (personal relief) as is appropriate to his circumstances but, if the assessment period is less than a year, the amount of the personal relief deductible under this sub-paragraph shall be calculated on a pro-rata basis;

(b) an amount in respect of primary Class 1 contributions payable under the Social Security Act in respect of those earnings; and

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

Section 20 Earnings of self-employed earners

“Earnings”, in the case of employment as a self-employed earner, means the gross income of the employment and shall include any allowance paid under section 2 of the Employment and Training Act 1973 to the claimant for the purpose of assisting him in carrying on his business.

Section 21 Calculation of net profit of self-employed earners

(1) For the purposes of regulation 13 (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 Social Security Act calculated in accordance with regulation 22 (deduction of tax and contributions for self-employed earners), and

(ii) one-half of any qualifying premium payable.

(2) There shall be disregarded from a claimant’s net profit, any sum, where applicable, specified in paragraphs 1 to 11 of Schedule 2.

(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 Social Security Act,

calculated in accordance with regulation 22 (deduction of tax and contributions for self-employed earners); and

(c) one-half of any qualifying premium payable.

(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 appropriate 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 Social Security Act,

calculated in accordance with regulation 22 (deduction of tax and contributions for self-employed earners); and

(b) one-half of any qualifying premium payable.

(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 earner 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) In this regulation “qualifying premium” means any premium or other consideration payable under an annuity contract for the time being approved by the Board of Inland Revenue as having for its main object the provision for the claimant of a life annuity in old age or the provision of an annuity for his partner or for any one or more of his dependants and in respect of which relief for income tax may be given.

Section 22 Deduction of tax and contributions for self-employed earners

(1) The amount to be deducted in respect of income tax under regulation 21(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 in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 257(1), (6) and (7) and 259(1)(a) and (2) of the Income and Corporation Taxes Act 1988 (personal relief ) as is appropriate to his circumstances; but, if the assessment period is less than a year, the amount of the personal relief 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 21(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 7(1) or, as the case may be, (4) of the Social Security Act except where the claimant’s chargeable income is less than the amount for the time being specified in section 7(5) of the Act (small earnings exception); and

(b) the amount of Class 4 contributions (if any) which would be payable under section 9 of that Act (Class 4 contributions recoverable under Tax Acts) in respect of profits or gains equal to the amount of that income.

(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 21;

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

Section 23 Calculation of income other than earnings

(1) For the purposes of regulation 14 (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) and (3), be his gross income and any capital treated as income under regulation 24 (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 3.

(3) 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.

(4) For the avoidance of doubt there shall be included as income to be taken into account under paragraph (1) any payment to which regulation 18(2) applies (payments not earnings).

Section 24 Capital treated as income

(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 review, shall, if the aggregate of the instalments outstanding and the amount of the claimant’s capital otherwise calculated in accordance with Chapter VI exceeds £8000, be treated as income.

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

Section 25 Notional income

(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 discretionary trust or a trust derived from a payment made in consequence of a personal injury, 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) Any payment of income, other than a payment of income made under the Macfarlane Trust , the Macfarlane (Special Payments) Trust or the Independent Living Fund, made–

(a) 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 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 eligible rent to which regulation 10 of the Housing Benefit (General) Regulations 1987 refers , of that single claimant or, as the case may be, of any member of that family or is used for any personal community charge or collective community charge contribution for which that claimant or member is liable;

(b) 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.

(4) Where a claimant is in receipt of any benefit (other than housing 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 appropriate authority shall treat the claimant as possessing such benefit at the altered rate from the first Monday in April in that year to the date on which the altered rate is to take effect.

(5) 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; and

(c) the appropriate authority is not satisfied that the means of that person are insufficient for him to pay or to pay more for the service,

the appropriate authority shall treat the claimant as possessing such earnings (if any) as is reasonable for that employment; but this paragraph shall not apply to a claimant who is engaged by a charitable or voluntary body or is a volunteer if the appropriate authority is satisfied that it is reasonable for him to provide his services free of charge.

(6) Where a claimant is treated as possessing any income under any of paragraphs (1) to (4) 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.

(7) Where a claimant is treated as possessing any earnings under paragraph (5) 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 19 (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 in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 257(1), (6) and (7) and 259(1)(a) and (2) of the Income and Corporation Taxes Act 1988 (personal relief ) as is appropriate to his circumstances; but, if the assessment period is less than a year the amount of the personal relief deductible under this sub-paragraph shall be calculated on a pro-rata basis;

(b) an amount in respect of primary Class 1 contributions payable under the Social Security Act in respect of those earnings; and

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

(8) In paragraph (3) the expression “ordinary clothing or footwear” means clothing or footwear for normal daily use, but does not include school uniforms, or clothing or footwear used solely for sporting activities.

Section 26 Modifications in respect of child and young person

(1) Where the income of a child or young person calculated in accordance with the foregoing provisions of this Part exceeds the amount included under Schedule 1 in the calculation of the claimant’s applicable amount for that child or young person by way of the personal allowance and disabled child premium, if any, the excess shall not be treated as income of the claimant.

(2) Where the capital of a child or young person, if calculated in accordance with Chapter VI in like manner as for the claimant, except where otherwise provided, would exceed £3000, any income of that child or young person shall not be treated as income of the claimant.

(3) In calculating the net earnings or net profit of a child or young person there shall be disregarded (in addition to any sum which falls to be disregarded under paragaphs 11 and 12) any sum specified in paragraphs 13 and 14 of Schedule 2.

(4) Any income of a child or young person which is to be disregarded under Schedule 3 shall be disregarded in such manner as to produce the result most favourable to the claimant.

Section 27 Capital limit

For the purposes of section 22(6) of the Act as it applies to housing benefit (no entitlement to benefit if capital exceeds prescribed amount), the prescribed amount is £8000.

Section 28 Calculation of capital

(1) For the purposes of Part II of the Act as it applies to housing 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 30 (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 4.

Section 29 Disregard of capital of child or young person

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.

Section 30 Income treated as capital

(1) Any bounty derived from employment to which paragraph 6 of Schedule 2 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 18(1)(d) (earnings of employed earners) shall be treated as capital.

(4) Except any income derived from capital disregarded under paragraphs 1, 2, 4, 7, 13, 24, 25, 26 or 27 of Schedule 4, 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.

Section 31 Calculation of capital in the United Kingdom

Capital which a claimant possesses in the United Kingdom shall be calculated–

(a) except in a case to which sub-paragraph (b) applies, at its current market or surrender value less–

(i) where there would be expenses attributable to sale, 10 per cent., and

(ii) the amount of any incumbrance secured on it;

(b) in the case of a National Savings Certificate–

(i) if purchased from an issue the sale of which ceased before 1st July last preceding the date on which the claim is made or treated as made, or the date of any subsequent review, at the price which it would have realised on that 1st July had it been purchased on the last day of that issue,

(ii) in any other case, at its purchase price.

Section 32 Calculation of capital outside the United Kingdom

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 incumbrance secured on it.

Section 33 Notional Capital

(1) A claimant shall be treated as possessing capital 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; 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 4,

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 made under the Macfarlane Trust , the Macfarlane (Special Payments) Trust or Independent Living Fund, made–

(a) 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 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, eligible rent to which regulation 10 of the Housing Benefit (General) Regulations 1987 refers, of that single claimant or, as the case may be, of any member of that family or is used for any personal community charge or collective community charge contribution for which that claimant or member is liable;

(b) to a single claimant or to 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.

(4) 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 28 (calculation of capital) be disregarded; and

(b) he shall, subject to paragraph (5), 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 Chapter shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.

(5) 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 (4) shall be disregarded.

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

(7) In paragraph (3) the expression “ordinary clothing or footwear” means clothing or footwear for normal daily use but does not include school uniforms, or clothing or footwear used solely for sporting activities.

Section 34 Capital jointly held

Except where a claimant possesses capital which is disregarded under regulation 33(4) (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 Chapter 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.

Section 35 Calculation of tariff income from capital

(1) Where the claimant’s capital calculated in accordance with this Part exceeds £3000 it shall be treated as equivalent to a weekly tariff income of £1 for each complete £250 in excess of £3000 but not exceeding £8000.

(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 30 (income treated as capital) .

Section 36 Interpretation

In this Part, unless the context otherwise requires–

“contribution” means any contribution in respect of the income of any other person which a Minister of the Crown or an education authority as defined in regulation 46 of the Housing Benefit (General) Regulations 1987 takes into account in assessing the amount of the student’s grant and by which that amount is, as a consequence, reduced;

“course of study” means any full-time or part-time course of study or sandwich course whether or not a grant is made for attending it;

“covenant income” means the gross income payable to a full-time student under a Deed of Covenant by his parent including any sum deducted from the gross amount for tax;

“grant” means any kind of educational grant or award and includes any scholarship, studentship, exhibition, allowance or bursary;

“grant income” means–

any income by way of a grant;

any contribution whether or not it is paid;

“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 to the end;

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, the period beginning with the start of the course or, as the case may be, that year’s start and ending with either–

in a case where the student’s grant is assessed at a rate appropriate to his studying throughout the year, or , if he does not have a grant, where it would have been assessed at such a rate had he had one, the day before the start of the next year of the course, or

in any other case, the day before the start of the recognised summer vacation appropriate to his course;

“periods of experience” has the same meaning as is prescribed for England and Wales in paragraph 1(1) of Schedule 5 to the Education (Mandatory Awards) Regulations 1988 ;

“sandwich course” has the same meaning as is prescribed for England and Wales in paragraph 1(1) of Schedule 5 to the Education (Mandatory Awards) Regulations 1988;

“standard maintenance grant” means the amount specified in paragraph 2(2) of Schedule 2 to the Education (Mandatory Awards) Regulations 1988 other than in sub-paragraph (a) or (b) thereof;

“student” means a person who is attending a course of study at an educational establishment including a registered student and a person who has started on such a course shall be treated as attending it throughout any period of term or vacation within it, until the end of the course or such earlier date as he abandons it or is dismissed from it.

Section 37 Treatment of students

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

Section 38 Calculation of grant income

(1) The amount of a student’s grant income to be taken into account shall, subject to paragraph (2), 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) intended to meet the cost of special equipment for a student on a course which began before 1st September 1986 in architecture, art and design, home economics, landscape architecture, medicine, music, ophthalmic optics, orthoptics, physical education, physiotherapy, radiography, occupational therapy, dental hygiene, dental therapy, remedial gymnastics, town and country planning and veterinary science or medicine;

(c) in respect of the student’s disability;

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

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

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

(g) intended to meet the cost of books and equipment (other than special equipment) or, in the case of a full-time student, if not so intended an amount equal to £234 towards such costs;

(h) intended to meet travel expenses incurred as a result of his attendance on the course.

(3) A student’s grant income shall be apportioned–

(a) subject to paragraph (4), in a case where it is attributable to the period of study, equally between the weeks in that period;

(b) in any other case, equally between the weeks in the period in respect of which it is payable.

(4) 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 remaining weeks in that period.

Section 39 Calculation of covenant income where a contribution is assessed

(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 and the amount deducted by way of tax in respect of that income.

(2) The weekly amount of the student’s covenant income 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 38(2)(h) (calculation of grant income) falls short of the amount included in the standard maintenance grant to meet travel expenses.

Section 40 Covenant income where no grant income or no contribution is assessed

(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 38(2)(a) to (f) (calculation of grant income) necessary as a result of his attendance on the course shall be disregarded;

(b) any convenant 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 38(2)(g) and (h) (calculation of grant income) had the student been in receipt of the standard maintenance grant;

(d) there shall be deducted from any amount in excess of the sums in sub-paragraphs (a) and (b) the amount deducted by way of tax in respect of the covenanted income; and

(e) 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 (e) 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 38(2)(a) to (f); 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 38(2)(g) and (h).

Section 41 Relationship with amounts to be disregarded under Schedule 3

No part of a student’s covenant income or grant income shall be disregarded under paragraph 13 of Schedule 3 and any other income shall be disregarded thereunder only if, and to the extent that, the amount disregarded under regulation 39(2)(b) (calculation of covenant income where a contribution is assessed) or, as the case may be, 40(1)(e) (covenant income where no grant income or no contribution is assessed) is less than £5.

Section 42 Other amounts to be disregarded

For the purposes of ascertaining income other than grant income and covenant income, any amounts intended for any expenditure specified in regulation 38(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 38(2), 39(3) or 40(1)(a) or (c) (calculation of grant and covenant income) on like expenditure.

Section 43 Disregard of contribution and rent

(1) Where the claimant or his partner is a student and the income of one is taken into account for the purposes of assessing a contribution to the student’s grant, an amount equal to the contribution shall be disregarded for the purposes of calculating the income of the one liable to make that contribution.

(2) Where the student or his partner pays rent in ascertaining the weekly income of a student during the period of study there shall be disregarded an amount equal to the amount specified in regulation 51(1)(b) of the Housing Benefit (General) Regulations 1987 (eligible rent) or if he has no income or his income is less than the amount to be so disregarded a deduction shall be made from the income of his partner (if any) but only to the extent of the difference.

(3) In this regulation “rent” includes all those payments in respect of a dwelling which are specified in regulation 10(1) of the Housing Benefit (General) Regulations 1987.

Section 44 Income treated as capital

Any amount by way of a refund of tax deducted from a student’s covenant income shall be treated as capital.

Section 45 Disregard of changes occurring during summer vacation

In calculating a student’s income the appropriate 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.

Section 46 Maximum housing benefit

(1) Except in a case to which paragraph (2) applies the amount of a person’s maximum housing benefit shall be–

(a) 80% of his liability for a personal community charge;

or

(b) 80% of his liability for a collective community charge contribution;

and shall be calculated on a weekly basis in accordance with regulation 56 (calculation of weekly amounts).

(2) Where a claim for housing benefit is made by or on behalf of a couple or the members of a polygamous marriage, the maximum housing benefit in respect of that couple or those members shall be 80% of the aggregate of the personal community charges or collective community charge contributions for which they are liable, except that where any member of that couple or marriage is a registered student the liability of that member for any such charge or contribution shall be disregarded.

(3) In calculating a person’s maximum housing benefit, any reduction to which Schedule 2 paragraph 4A of the 1987 Act refers shall be disregarded.

Section 47 Housing benefit taper

The prescribed percentage for the purpose of subsection (5) of section 21 of the Act (percentage of excess of income over applicable amount which is deducted from maximum housing benefit) shall be, in calculating the amount of housing benefit, 15%.

Section 48 Amount of housing benefit for members of a couple

(1) Subject to regulation 50 (amount of housing benefit for partners of registered students) in calculating the amount of housing benefit to which the members of a couple are entitled for any period, paragraphs (2) or (3) shall apply.

(2) Where the members of a couple have no income or their income calculated in accordance with Part IV does not exceed the applicable amount, the housing benefit to which either member is entitled shall be determined by dividing the maximum housing benefit proportionately to each member’s liability for a personal community charge or collective community charge contribution for that period.

(3) Where a couple’s income calculated in accordance with Part IV exceeds the applicable amount and there is an amount remaining after deducting from the maximum housing benefit the percentage prescribed in regulation 47 (housing benefit taper) of the excess of their income over the applicable amount, then the housing benefit to which either member is entitled shall be determined by dividing the amount remaining proportionately to each member’s liability for a personal community charge or collective community charge contribution for that period.

Section 49 Amount of housing benefit for members of a polygamous marriage

(1) Subject to regulation 50 (amount of housing benefit for partners of registered students), in calculating the amount of housing benefit to which the members of a polygamous marriage are entitled for any period, paragraphs (2) and (3) shall apply.

(2) Where the members of a polygamous marriage have no income or their income calculated in accordance with Part IV does not exceed the applicable amount, the housing benefit to which each member is entitled shall be determined by dividing the maximum housing benefit proportionately to each member’s liability for a personal community charge or collective community charge contribution for that period.

(3) Where the income of the members of a polygamous marriage calculated in accordance with Part IV exceeds the applicable amount and there is an amount remaining after deducting from the maximum housing benefit the percentage prescribed in regulation 47 (housing benefit taper) of the excess of their income over the applicable amount, then the housing benefit to which each member is entitled shall be determined by dividing the amount remaining proportionately to each member’s liability for a personal community charge or collective community charge contribution for that period.

Section 50 Amount of housing benefit for partners of registered students

(1) The amount of housing benefit to which the partner of a registered student is entitled for any period shall be determined in accordance with the following paragraphs.

(2) Where the members of a couple or of a polygamous marriage have no income, or their income calculated in accordance with Part IV does not exceed their applicable amount,–

(a) in the case of a couple, the housing benefit to which the partner of the registered student is entitled shall be the maximum housing benefit;

(b) in the case of a polygamous marriage, the housing benefit to which the members of that marriage, other than the registered student, are entitled shall be determined by dividing the maximum housing benefit proportionately to each member’s liability for a personal community charge or collective community charge contributions for that period.

(3) Where the income of a couple or of the members of a polygamous marriage calculated in accordance with Part IV exceeds their applicable amount and there is an amount remaining after deducting from the maximum housing benefit the percentage prescribed in regulation 47 (housing benefit taper) of the excess of their income over the applicable amount,

(a) in the case of a couple, the housing benefit to which the partner of the registered student is entitled shall be the amount remaining after the deduction has been made;

(b) in the case of a polygamous marriage, the housing benefit to which the members of that marriage, other than the registered student, are entitled shall be determined by dividing the amount remaining after the deduction has been made, proportionately to each member’s liability for a personal community charge or collective community charge contribution for that period.