6549.0 - Household Income, Consumption, Saving and Wealth, A Provisional Framework, 1995  
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Contents >> Chapter 13. Capital transfers

Capital transfers received

Definition

13.1. Capital transfers received are defined as receipts which involve the transfer of ownership of an asset from a household, government or private organisation to the recipient household. The receipt of the capital transfer results in an increase in the value of stocks of assets of the household.

13.2. Operationally, capital transfers received are defined as irregular and non-recurring receipts. Non-recurring in this context relates to transfers received less than annually. The condition of irregularity/non-recurring is, however, only a secondary criterion and should be used only as a rule of thumb. Where there is difficulty in distinguishing whether a receipt is income or a capital transfer, it should be classified as income.

13.3. Capital transfers received may be in cash or in-kind.

Classification

13.4. Capital transfers cover a very heterogeneous group of receipts. Capital transfers received are classified primarily according to the donor of the transfers. A secondary classification refers to the nature of the receipt.

      • Receipts from other households:
        • inheritances and legacies
        • non-recurring gifts from other households
        • capital repayment of loans from other households
        • lump sum alimony or property settlements
        • other.

      • Receipts from private institutions and enterprises:
        • irregular winnings from lotteries and other gambling
        • maturity payments received on life insurance policies
        • lump sum compensation for injuries
        • other casualty claims received including worker's compensation
        • lump sum termination payments
        • legal damages
        • other.

      • Receipts from government:
        • investment grants for unincorporated enterprises
        • other.

13.5. These receipts may also be classified according to whether they are fixed or financial assets in order to align them with the other stock/flow classifications.


Capital transfers outlaid

Definition

13.6. Capital transfers outlaid are defined as the transfer of ownership of an asset by the household to another household, private institution or government.

13.7. Capital transfers are usually large enough to have to have been financed from the donor's household stock of capital rather than from its income. The capital transfer outlaid will, therefore, usually not be a regular or recurring outlay. Again, however, the criterion of irregular/non-recurring is a secondary and practical criterion that should only be used as a rule of thumb. Where there is difficulty in distinguishing whether an outlay is a current or a capital outlay, it should be classified as a current transfer.

13.8. Capital transfers outlaid are a fairly homogeneous group of disbursements which may be paid to private institutions (such as charities) or to other households.

Classification

13.9. Capital transfers outlaid are classified according to the nature of the transfer and the nature of the recipient:

      • donations to charities from the household's assets
      • gifts of assets to other households
      • lump sum property and other settlements paid out (e.g. as part of divorce settlements)
      • other





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