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GUIDANCE FOR LOCAL AUTHORITIES ON IMPROVEMENT AND REPAIRS GRANTS
CHAPTER VII: ALLOWABLE DEDUCTIONS
Determination of allowable deductions
24. Allowable deductions for the purposes of regulation 4(2) shall be determined in accordance with this Chapter.
Allowable deductions for mortgage or rent
25.- (1) Subject to paragraph (3) rental payments made by the relevant person for the purpose of allowing-
(a) the relevant person; or
(b) any member of the relevant person's family
to occupy any property as that person's or, as the case may be, member's main or only residence shall be allowable deductions.
(2) For the purposes of paragraph (1) rental payment excludes any payment in relation to council tax or water charges but includes any payment in relation to any standard security over the property granted-
(a) in respect of acquiring the property;
(b) in respect of carrying out repairs or improvements to the property; or
(c) where another standard security over the property has been redeemed and {the} payment would have, had it been made under the redeemed security, qualified as rental payments under paragraphs (a) or (b).
(3) For the purposes of the case referred to in paragraph (1)(b), the payment is a rental payment only where the relevant person is contractually obliged to make that payment.
Allowable deductions for dependent persons and disabled people
26. The allowances specified in this regulation shall be allowable deductions and are as follows-
(a) (i) subject to paragraph (a)(iii), an allowance of 47 for each week of the assessment period where a relevant person is responsible for another person in terms of regulation 27 and
(ii) subject to paragraph (a)(iii), where that other person is in receipt of a disability living allowance or is registered blind, an additional allowance of 42 for each week of the assessment period;
(iii) where more than one relevant person is responsible for another person in terms of regulation 27 then the allowances provided for at paragraph (a)(i) or (ii) shall be applied only once in respect of each such other person for which those relevant persons are responsible;
(b) where a relevant person has no spouse, an allowance of 35 for each week of the assessment period where that relevant person is in receipt of-
(i) disability living allowance;
(ii) the disability element of the working tax credit;
(iii) disabled person's tax credit;
(iv) severe disablement allowance;
(v) incapacity benefit;
(vi) mobility supplement;
(vii) attendance allowance; or
(viii) any equivalent benefit paid to meet attendance, or mobility needs due to disability or illness.
(c) where a relevant person has no spouse, an allowance of 35 for each week of the assessment period where that relevant person is not in receipt of any benefits specified in paragraph (b) but that relevant person-
(i) is registered as blind; or
(ii) was previously in receipt of a benefit under paragraph (b) above but has ceased to receive that benefit due to the maximum age limit for that benefit being reached or because that person is being treated as an inpatient.
(d) subject to paragraph (e) where a relevant person has a spouse but would otherwise qualify for an allowance under paragraphs (b) or (c), an allowance of 50 for each week of the assessment period.
(e) in a case where the spouse of the relevant person mentioned in paragraph (d) is also in receipt of any of the benefits mentioned in paragraph (b) or falls within the categories specified in paragraph (c)(i)or (ii) an allowance of 25 for each week of the assessment period.
Circumstances where a person is to be treated as responsible for another person
27.-(1) Subject to the following provisions of this regulation a person shall be treated as responsible for another person who is normally living with that person who is
(a) below the age of sixteen; or
(b) aged sixteen or above but below the age of 21 and in full time education; or
(c) aged 21 if aged 20 at the beginning of the academic year of the full time course of education in which the person is engaged.
(2) A 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 that person;
(b) if there is no such person and where only one claim for child benefit has been made in respect of that person, the person who made that claim;
(c) the person whose means could have been taken into account for the purposes of determining a student loan in respect of that person provided under the Education (Student Loans) (Scotland) Regulations 1999( 32); or
(d) in any other case the person who has the primary responsibility for that person.
(3) In this regulation "full-time course of education" means a course of education requiring attendance for 24 weeks or more during any period of one year-
(a) provided by an institution within the higher education sector ; or
(b) provided by
(i) a school; or
(ii) a college of further education; and
involving more than 16 hours per week of programmed learning, which may consist of any combination of-
(aa) classroom-based learning;
(bb) workshop-based learning; or
(cc) use of structured learning packages supported by teaching staff.
PART III
ASSESSMENT OF CONTRIBUTIONS - NON-OCCUPIERS AND OTHER PREMISES
Interpretation
28. In this Part of these Regulations-
"actual value" means the value of the house on the date of the application;
"added value" means (subject to regulation 31) the difference between the actual value of the house and the assumed value of the house;
"assumed value" means the value of the house determined on the assumption that the works have already been satisfactorily carried out at the date of the application;
"house" in relation to an application referred to in regulation 29(b), has the meaning assigned by section 108(8) of the Act( 33);
"refurbishment scheme" means a scheme where a single contract is to be let to undertake a similar programme of improvement or repair works to 3 or more houses and the works are not works to which regulation 33(d) applies or repair work carried out by a local authority under section 108(3) of the Act;
"value", in relation to actual value and assumed value, shall be determined by reference to the price which could be expected to be obtained for the house were it to be available for sale on the open market with vacant possession.
Applications to which Part III applies
29. The classes of application to which this Part applies are-
(a) an application by the owner where the owner, or any member of the owner's family, does not occupy or intend to occupy the house as that person's main or only residence; or
(b) an application which relates to other premises (within the meaning of section 108(8)(b) of the Act) other than a house and which relates to a repairs notice that has been served in terms of that section.
Determination of added value
30. The added value shall be determined by a qualified valuer nominated by the local authority by which the application is received.
Circumstances where added value deemed to be nil
31. The added value shall be deemed to be nil where the applicant is-
(a) a registered social landlord in terms of section 57 of the Housing (Scotland) Act 2001( 34)
(b) any charitable body or other body that does not trade for profit and is established for the purpose of, or has among its objects and powers-
(i) the provision, construction, improvement or management of houses to be kept available for letting;
(ii) the provision, construction, improvement or management of houses for occupation by members of the body, where the rules of the body restrict membership to persons entitled or prospectively entitled (as tenants or otherwise) to occupy a house provided or managed by the body;
(iii) acquiring, or repairing and improving, or creating by the conversion of houses or other property, houses to be disposed of on sale, on lease or on shared ownership terms; or
(iv) constructing houses to be disposed of on shared ownership terms.
Calculation of applicant's contribution
32. Subject to regulation 33, an applicant's contribution shall be the added value plus 80% of the amount by which the approved expense exceeds the added value.
Reduction of applicant's contribution
33.- (1) Subject to regulation 34, the applicant's contribution shall be reduced by 20% of the amount by which the approved expense exceeds the added value for each qualifying condition which applies.
(2) The qualifying conditions are-
(a) the works to which the application relates are required-
(i) for the provision of housing by the conversion or subdivision of the house or houses; or
(ii) to facilitate the re-occupation of the house or houses which have been vacant for no less than 2 years prior to the date of application;
(b) the works to the house to which the application relates will bring the house up to the tolerable standard in terms of section 86 of the Act;
(c) the works to which the application relates are part of a refurbishment scheme;
(d) that the works to which the application relates are to make improvements or carry out repairs in respect of a building which comprises either two or more separate houses, or a house or houses and other separate premises where-
(i) the works will benefit either two or more such houses, or house or houses and other separate premises; and
(ii) the cost of the improvements or repairs will be shared among the owners or occupiers of those houses or other separate premises.
(e) the works to which the application relates shall-
(i) increase substantially the extent to which any disabled person can independently enter and move around the house and operate all fittings, services and controls; and
(ii) exceed the requirements of the Building Standards (Scotland) Regulations 1990( 35) in this respect;
(f) the applicant is
(i) a registered social landlord in terms of section 57 of the Housing (Scotland) Act 2001( 36)
(ii) any charitable body or other body that does not trade for profit and is established for the purpose of, or has among its objects and powers-
(aa) the provision, construction, improvement or management of houses to be kept available for letting;
(bb) the provision, construction, improvement or management of houses for occupation by members of the body, where the rules of the body restrict membership to persons entitled or prospectively entitled (as tenants or otherwise) to occupy a house provided or managed by the body;
(cc) acquiring, or repairing and improving, or creating by the conversion of houses or other property, houses to be disposed of on sale, on lease or on shared ownership terms; or
(dd) constructing houses to be disposed of on shared ownership terms.
Applicant's contribution not to be less than added value
34. In no circumstances shall the applicant's contribution be less than the added value.
PART IV
ASSESSMENT OF CONTRIBUTION- OTHERS
Assessment of contributions where application falls outwith Part II and Part III
35. In the case of any application to which neither Part II nor Part III applies, the amount to be treated as the applicant's contribution shall be assessed as an amount equal to the approved expense.
PART V
APPLICATION
Application of Regulations
36. These Regulations shall not have effect in relation to applications for grant approved before these Regulations came into force.
Regulation 4
SCHEDULE 1
ASSESSMENT OF APPLICANT'S CONTRIBUTION
Column 1
Range of income | Column 2
Percentage figure |
From | To |
0 | 9.99 | 0 |
10 | 242.99 | 1 |
243 | 475.99 | 2 |
476 | 708.99 | 3 |
709 | 941.99 | 4 |
942 | 1,174.99 | 5 |
1,175 | 1,407.99 | 6 |
1,408 | 1,640.99 | 7 |
1,641 | 1,873.99 | 8 |
1,874 | 2,106.99 | 9 |
2,107 | 2,339.99 | 10 |
2,340 | 2,572.99 | 11 |
2,573 | 2,805.99 | 12 |
2,806 | 3,038.99 | 13 |
3,039 | 3,271.99 | 14 |
3,272 | 3,504.99 | 15 |
3,505 | 3,737.99 | 16 |
3,738 | 3,970.99 | 17 |
3,971 | 4,203.99 | 18 |
4,204 | 4,436.99 | 19 |
4,437 | 4,669.99 | 20 |
4,670 | 4,902.99 | 21 |
4,903 | 5,135.99 | 22 |
5,136 | 5,368.99 | 23 |
5,369 | 5,601.99 | 24 |
5,602 | 5,834.99 | 25 |
5,835 | 6,067.99 | 26 |
6,068 | 6,300.99 | 27 |
6,301 | 6,533.99 | 28 |
6,534 | 6,766.99 | 29 |
6,767 | 6,999.99 | 30 |
7,000 | 7,299.99 | 31 |
7,300 | 7,599.99 | 32 |
7,600 | 7,899.99 | 33 |
7,900 | 8,199.99 | 34 |
8,200 | 8,499.99 | 35 |
8,500 | 8,799.99 | 36 |
8,800 | 9,099.99 | 37 |
9,100 | 9,399.99 | 38 |
9,400 | 9,699.99 | 39 |
9,700 | 9,999.99 | 40 |
10,000 | 10,299.99 | 41 |
10,300 | 10,599.99 | 42 |
10,600 | 10,899.99 | 43 |
10,900 | 11,199.99 | 44 |
11,200 | 11,499.99 | 45 |
11,500 | 11,799.99 | 46 |
11,800 | 12,099.99 | 47 |
12,100 | 12,399.99 | 48 |
12,400 | 12,699.99 | 49 |
12,700 | 12,999.99 | 50 |
13,000 | 13,299.99 | 51 |
13,300 | 13,599.99 | 52 |
13,600 | 13,899.99 | 53 |
13,900 | 14,199.99 | 54 |
14,200 | 14,499.99 | 55 |
14,500 | 14,799.99 | 56 |
14,800 | 15,099.99 | 57 |
15,100 | 15,399.99 | 58 |
15,400 | 15,699.99 | 59 |
15,700 | 15,999.99 | 60 |
16,000 | 16,299.99 | 61 |
16,300 | 16,599.99 | 62 |
16,600 | 16,899.99 | 63 |
16,900 | 17,199.99 | 64 |
17,200 | 17,499.99 | 65 |
17,500 | 17,799.99 | 66 |
17,800 | 18,099.99 | 67 |
18,100 | 18,399.99 | 68 |
18,400 | 18,699.99 | 69 |
18,700 | 18,999.99 | 70 |
19,000 | 19,499.99 | 71 |
19,500 | 19,999.99 | 72 |
20,000 | 20,499.99 | 73 |
20,500 | 20,999.99 | 74 |
21,000 | 21,499.99 | 75 |
21,500 | 21,999.99 | 76 |
22,000 | 22,499.99 | 77 |
22,500 | 22,999.99 | 78 |
23,000 | 23,499.99 | 79 |
23,500 | 23,999.99 | 80 |
24,000 | 24,799.99 | 81 |
24,800 | 25,599.99 | 82 |
25,600 | 26,399.99 | 83 |
26,400 | 27,199.99 | 84 |
27,200 | 27,999.99 | 85 |
28,000 | 28,799.99 | 86 |
28,800 | 29,599.99 | 87 |
29,600 | 30,399.99 | 88 |
30,400 | 31,199.99 | 89 |
31,200 | 31,999.99 | 90 |
32,000 | upwards | 100 |
Regulation 16(2)
SCHEDULE 2
SUMS TO BE DISREGARDED IN THE DETERMINATION OF INCOME OTHER THAN EARNINGS
1. Any payment in respect of any expenses incurred by a relevant person who is-
(a) engaged by a charitable body or voluntary organisation, or
(b) a volunteer,
if he otherwise derives no remuneration or profit from the employment.
2. In the case of employment as an employed earner, any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment.
3. Any payment under section 148 of the 1992 Act (Entitlement of pensioners to Christmas bonus).
4. Any payment (other than a training allowance) made, whether by the Secretary of State or any other person, under the Disabled Persons (Employment) Act 1944( 37) or in accordance with arrangements made under section 2 of the Employment and Training Act 1973 to assist disabled persons to obtain or retain employment despite their disability.
5. Any guardian's allowance under Part III of the 1992 Act.
6. Any payment under the following-
(a) Naval, Military and Air Forces Etc. (Disablement and Death) Services Pensions Order 1983( 38);
(b) Personal Injuries (Civilians) Scheme 1983( 39);
(c) Pensions (Polish Forces) Scheme 1964( 40); and
(d) War Pensions (Mercantile Marine) Scheme 1964( 41).
EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations provide a means of assessment of an applicant's contribution to the cost of works for which improvement grants, repairs grants and grants for a means of escape from fire for a house in multiple occupancy may be given by a local authority. The Regulations are made under section 240A of the Housing (Scotland) Act 1987.
Part I of the Regulations deals with commencement and interpretation.
Part II of the Regulations sets out the means test in relation to applications for grant from owner occupiers, tenants, liferenters, disabled persons or the person responsible for a disabled person under the age of 16. In the last 2 cases the works must be to make the property suitable for the needs of the disabled occupant. Chapter I details the applications to which Part II applies. Chapter II sets out the formula for calculating the applicant's contribution and details who are the relevant persons whose income will be taken into account when calculating the applicant's contribution. Schedule 1 contains a table enabling the actual calculation of the applicant's contribution. Chapter III deals with general provisions in relation to how the income of relevant persons is assessed with detailed provisions being provided in Chapter IV in relation to employed earners, Chapter V in relation to self employed earners and Chapter VI in relation to other income. Schedule 2 details certain sums that are to be disregarded when determining income. Finally Chapter VII details what constitute allowable deductions against income.
Part III of the Regulations sets out the method of calculation of the applicant's contribution in relation to applications for grant from owners who are not in occupation of the house to which the application relates or where the application is for repairs grant as a result of a repairs notice over premises other than a house where those premises are part of a building which contains housing.
Part IV of the Regulations states that where an application for grant falls into neither Part II nor Part III of the Regulations, the applicant's contribution shall be the whole of the amount approved as being the expense of the carrying out of the works.
Part V of the Regulations provides that the Regulations shall not apply in respect of applications approved by a local authority before the 1 st October 2003 (the date on which these Regulations come into force).
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