In most cases capital resources arise out of income resources. They represent savings out of past earnings. However before they undergo the metamorphosis from income to capital all relevant debts including, in particular, tax liabilities, are first deducted. R(SB)2/83

Items that are ignored as capital

• Any future interest in property of any kind, except that which is let
• Any personal possessions (except those acquired to circumvent the capital rules)
• The cash or surrender value of an annuity
• The value of the right to receive any income under a life interest or from a life rent
• The sale value of the right to an income in another country which cannot be transferred to this country
• The surrender value of any life insurance
• The right to receive a capital sum by instalments
• Money from Social Work departments for children
• Money from the Social Fund, the Macfarlane Trust or the Macfarlane (Special Payments) Trust, the Independent Living Fund, or the London Bombings Relief Charitable Fund
• The value of the right to receive an occupational pension or any rent
• Any payment in kind by a charity
• The first £200 of a training bonus paid under the Employment and Training Act or the Enterprise and New Towns (Scotland) Act 1990.
• The assets of any business where the claimant is ill, unable to work in the business because of the illness, and intends to return to it.
• Any NHS travelling expenses, welfare foods payments, prison visiting payments, or any arrears of special war widows payments.
• Any Sports Award, made by a Sports Council.
• A pension lump sum held by a third party provided that the third party is a trustee in bankruptcy or other person acting on behalf of creditors or where a bankruptcy or sequestration order has been made. Where this is not the case, the pension counts as capital.
• Lump-sum payments made to Housing Benefit recipients under regulation 11 of the Social Security (Payments to Reduce Under-occupation) Regulations 2000, are disregarded as capital for a period of 52 weeks from the date of payment.
• Payments made under World War II Compensation Schemes.
• Any lump sum, additional multiple injury lump sum or additional lump sum paid under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2005, where the payment relates to an injury that falls within any of levels 1 to 6 of the tariff set out in that Order.

Housing Renewal Grant Regs 96 Sched 4 para 8-33

For the general rules see: Housing Renewal Grant Regs 96 Sched 4

Items treated as capital, not income

• Annual bounty from the fire brigade, coastguard, lifeboat, territorial or reserve forces
• Holiday pay payable more than four weeks after the end of the employment
• Most income derived from capital
• Advances of earnings or loans from employers or income tax refunds
• Any payment from a charity which is not paid, or due to be paid, at regular intervals not otherwise disregarded as capital

Housing Renewal Grant Regs 96 Reg 35