The Civil Legal Aid (Assessment of Resources) Regulations 1989

Regulation 4

SCHEDULE 3 COMPUTATION OF CAPITAL

1.—(1) Subject to paragraph (2) and to the provisions of these Regulations, in computing the capital of the person concerned, there shall be included the amount or value of every resource of a capital nature belonging to him on the date the legal aid application is made.

(2) Where it comes to the attention of the assessment officer that, between the date the legal aid application is made and the assessment, there has been a substantial fluctuation in the value of a resource or there has been a substantial variation in the nature of a resource affecting the basis of computation of its value, or any resource has ceased to exist or a new resource has come into the possession of the person concerned, the officer shall compute the capital resources of that person in the light of such facts and the resources as so computed shall be taken into account in the assessment.

2.  In so far as any resource of a capital nature does not consist of money, its amount or value shall be taken to be–

(a) the amount which that resource would realise if sold in the open market or, if there is only a restricted market for that resource, the amount which it would realise in that market, or

(b) the amount or value assessed in such manner as appears to the assessment officer to be just and equitable.

3.  Where money is due to the person concerned, whether it is payable immediately or otherwise and whether payment is secured or not, its value shall be taken to be its present value.

4.  Where the person concerned stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, the assessment officer may, in lieu of ascertaining the value of his stocks, shares, bonds or debentures in that company, treat that person as if he were the sole owner or partner and compute the amount of his capital in respect of that resource in accordance with paragraph 5 below.

5.  Where the person concerned is or is to be treated as the sole owner of, or a partner in, any business, the value of such business to him or his share shall be taken to be either–

(a) such sum, or his share of such sum, as the case may be, as could be withdrawn from the assets of such business without substantially impairing the profits of such business or its normal development; or

(b) such sum as that person could borrow on the security of his interest in such business without injuring the commercial credit of that business;

whichever is the greater.

6.  The value of any interest in reversion or remainder on the termination of a prior estate, whether legal or equitable, in any real or personal property or in a trust or other fund, whether the person concerned has the sole interest or an interest jointly or in common with other persons or whether his interest is vested or contingent, shall be computed in such manner as is both equitable and practicable.

7.  Where the person concerned or his spouse is in receipt of income support paid under the Social Security Act 1986, the person concerned shall, for the period during which income support is received, be deemed to have disposable capital not exceeding the figure for the time being specified in regulation 4(3)(b).

8.  In computing the amount of capital of the person concerned, there shall be wholly disregarded any payment which is made out of the social fund under section 32 of the Social Security Act 1986.

9.  Save in exceptional circumstances, no sum shall be included in the amount of the capital of the person concerned in respect of–

(a) the household furniture and effects of the dwelling house occupied by him;

(b) articles of personal clothing; and

(c) the tools and equipment of his trade, unless they form part of the plant or equipment of a business to which the provisions of paragraph 5 of this Schedule apply.

10.—(1) In computing the amount of capital of the person concerned, the value of any interest in the main or only dwelling in which he resides shall be wholly disregarded.

(2) Where the person concerned resides in more than one dwelling in which he has an interest, the assessment officer shall decide which is the main dwelling and shall take into account in respect of the value to him of any interest in a dwelling which is not the main dwelling any sum which might be obtained by borrowing money on the security thereof.

11.  Where the person concerned has received or is entitled to receive from a body of which he is a member a sum of money by way of financial assistance towards the cost of the proceedings in respect of which the legal aid application is made, such sum shall be disregarded.

12.  The value to the person concerned of any life assurance or endowment policy shall be taken to be the amount which the person concerned could readily borrow on the security thereof.

13.  Where under any statute, bond, covenant, guarantee or other instrument, the person concerned is under a contingent liability to pay any sum or is liable to pay a sum not yet ascertained, an allowance shall be made of such an amount as is reasonably likely to become payable within the 12 months immediately following the date of the application for a certificate.

14.  Where the person concerned produces evidence which satisfies the assessment officer that the debt or part of the debt will be discharged within the twelve months immediately following the date of the legal aid application, an allowance may be made in respect of any debt owing by the person concerned (other than a debt secured on the dwelling or dwellings in which he resides) to the extent to which the assessment officer considers reasonable.

15.  In computing the capital of the person concerned, there may also be disregarded such an amount of capital (if any) as the assessment officer may, in his discretion, decide having regard to all the circumstances of the case.