“SCHEDULE
Article 7
Remissions and reductions
Interpretation
1. (1) In this Schedule—
“child” means a person—
(a) whose main residence is with a party and who is aged—
(i) under 16 years; or
(ii) 16 to 19 years; and is—
(aa) not married or in a civil partnership; and
(bb) enrolled or accepted in full-time education that is not advanced education, or approved training; or
(b) in respect of whom a party or their partner pays child support maintenance or periodic payments in accordance with a maintenance agreement,
and “full-time education”, “advanced education” and “approved training” have the meaning given by the Child Benefit (General) Regulations 20063;
“child support maintenance” has the meaning given in section 3(6) of the Child Support Act 19914;
“couple” has the meaning given in section 39(1) of the Welfare Reform Act 20125;
“disposable capital” has the meaning given in paragraph 5;
“excluded benefits” means any of the following—
(a) any of the following benefits payable under the Social Security Contributions and Benefits Act 19926or the corresponding provisions of the Social Security Contributions and Benefits (Northern Ireland) Act 19927—
(i) attendance allowance under section 648;
(ii) severe disablement allowance;
(iii) carer’s allowance;
(iv) disability living allowance;
(v) constant attendance allowance under section 104 as an increase to a disablement pension;
(vi) any payment made out of the social fund;
(vii) housing benefit;
(viii) widowed parents allowance;
(b) any of the following benefits payable under the Tax Credits Act 20029—
(i) any disabled child element or severely disabled child element of the child tax credit;
(ii) any childcare element of the working tax credit;
(c) any direct payment made under the Community Care, Services for Carers and Children’s Services (Direct Payments) (England) Regulations 200910, the Carers and Direct Payments Act (Northern Ireland) 200211, section 12B(1) of the Social Work (Scotland) Act 196812, the Social Care (Self-directed Support) (Scotland) Act 201313or under regulations made under sections 50 to 53 of the Social Services and Well-being (Wales) Act 201414;
(d) a back to work bonus payable under section 26 of the Jobseekers Act 199515, or article 28 of the Jobseekers (Northern Ireland) Order 199516;
(e) any exceptionally severe disablement allowance paid under the Personal Injuries (Civilians) Scheme 198317;
(f) any payments from the Industrial Injuries Disablement Benefit in accordance with sections 103 to 105, paragraphs 2 and 3, and Parts II and III of Schedule 7 to the Social Security Contributions and Benefits Act 199218;
(g) any pension paid under the Naval, Military and Air Forces etc. (Disablement and Death) Service Pension Order 200619;
(h) any payment made from the Independent Living Funds listed in regulation 20(2)(b) of the Criminal Legal Aid (Financial Resources) Regulations 201320;
(i) any payment of bereavement support payment under section 30 of the Pensions Act 201421;
(j) any financial support paid under an agreement for the care of a foster child;
(k) any housing credit element of pension credit;
(l) any armed forces independence payment;
(m) any personal independence payment payable under the Welfare Reform Act 2012;
(n) any payment on account of benefit as defined in the Social Security (Payments on Account of Benefit) Regulations 201322;
(o) any of the following amounts, as defined by the Universal Credit Regulations 201323, that make up an award of universal credit—
(i) an additional amount to the child element in respect of a disabled child;
(ii) a housing costs element;
(iii) a childcare costs element;
(iv) a carer element;
(v) a limited capability for work or limited capacity for work and work-related activity element;
“gross monthly income” has the meaning given in paragraph 13;
“maintenance agreement” has the meaning given in section 9(1) of the Child Support Act 1991;
“partner” means a person with whom the party lives as a couple and includes a person with whom the party is not currently living but from whom the party is not living separate and apart;
“party” means the individual who would, but for this Schedule, be liable to pay a fee under this Order;
“restraint order” means—
(a) an order under section 42(1A) of the Senior Courts Act 198124;
(b) an order under section 33 of the Employment Tribunals Act 199625;
(c) a civil restraint order made under rule 3.11 of the Civil Procedure Rules 199826, or a practice direction made under that rule; or
(d) a civil restraint order under rule 4.8 of the Family Procedure Rules 201027, or the practice direction referred to in that rule.
(2) References to remission of a fee are to be read as including references to a reduction of a fee as appropriate and remit and remitted shall be construed accordingly.
Fee remission
2. If a party satisfies the disposable capital test, the amount of any fee remission is calculated by applying the gross monthly income test.
Disposable capital test
Disposable capital test
(1) (3) Subject to paragraph 4, a party satisfies the disposable capital test if—
(a) the fee payable by the party and for which an application for remission is made, falls within a fee band set out in column 1 of Table 1; and
(b) the party’s disposable capital is less than the amount in the corresponding row of column 2.
Column 1 (fee band) |
Column 2 (disposable capital) |
Up to and including £1,000 |
£3,000 |
£1,001 to £1,335 |
£4,000 |
£1,336 to £1,665 |
£5,000 |
£1,666 to £2,000 |
£6,000 |
£2,001 to £2,330 |
£7,000 |
£2,331 to £4,000 |
£8,000 |
£4,001 to £5,000 |
£10,000 |
£5,001 to £6,000 |
£12,000 |
£6,001 to £7,000 |
£14,000 |
£7,001 or more |
£16,000 |
(4) Subject to paragraph 14, if a party or their partner is aged 61 or over, that party satisfies the disposable capital test if that party’s disposable capital is less than £16,000.
(5) Disposable capital
Subject to paragraph 14, disposable capital is the value of every resource of a capital nature belonging to the party on the date on which the application for remission is made, unless it is treated as income by this Order, or it is disregarded as excluded disposable capital.
(6) Disposable capital – non-money resources
The value of a resource of a capital nature that does not consist of money is calculated as the amount which that resource would realise if sold, less—
(a)
(a) 10% of the sale value; and
(b)
(b) the amount of any borrowing secured against that resource that would be repayable on sale.
(7) Disposable capital – resources held outside the United Kingdom
(1)
(1) Capital resources in a country outside the United Kingdom count towards disposable capital.
(2)
(2) If there is no prohibition in that country against the transfer of a resource into the United Kingdom, the value of that resource is the amount which that resource would realise if sold in that country, in accordance with paragraph 6.
(3)
(3) If there is a prohibition in that country against the transfer of a resource into the United Kingdom, the value of that resource is the amount that resource would realise if sold to a buyer in the United Kingdom.
(8) Disposable capital – foreign currency resources
Where disposable capital is held in currency other than sterling, the cost of any banking charge or commission that would be payable if that amount were converted into sterling, is deducted from its value.
(9) Disposable capital – jointly owned resources
Where any resource of a capital nature is owned jointly or in common, there is a presumption that the resource is owned in equal shares, unless evidence to the contrary is produced.
(10) Excluded disposable capital
The following things are excluded disposable capital—
(a)
(a) a property which is the main or only dwelling occupied by the party;
(b)
(b) the household furniture and effects of the main or only dwelling occupied by the party;
(c)
(c) articles of personal clothing;
(d)
(d) any vehicle, the sale of which would leave the party, or their partner, without motor transport,
(e)
(e) tools and implements of trade, including vehicles used for business purposes;
(f)
(f) the capital value of the party’s or their partner’s business, where the party or their partner is self-employed;
(g)
(g) the capital value of any funds or other assets held in...