Article 2 Interpretation

In this Order—

• “accounting period” in relation to an undertaking means the period by reference to which the accounts relating to the undertaking are compiled;

• “adjusted income” in relation to any period (“the relevant period”) means the amount of relevant income for that period multiplied by the product of P/Y, where P is the retail prices index for September 1987 and Y is the retail prices index for the September falling during the relevant period, unless the base month for the index for that September differs from the base month for the index for September 1987, in which case Y is the figure calculated for the purposes of paragraph 5(5) of Schedule 7 to the Local Government Finance Act 1988 as the figure which would have been the index for the September falling during the relevant period if the base month for the index had been the same in both cases;

• “relevant income” in relation to a period means all income by way of revenue included or falling to be included in the revenue or profit and loss account of an undertaking for the period, whether derived from the operations carried on under the authority referred to in article 3(1) or otherwise, other than—

  1. (a)

     income in respect of pilotage;

  2. (b)

     income from—

     1. (i)

        investments required to be shown in the accounts of the undertaking (other than investments in subsidiary companies);

     2. (ii)

        loans or deposits;

     3. (iii)

        rent or other payments receivable in consideration of the grant of permission for occupation or use of any property of the undertaking, or right over such property, which is or forms part of a hereditament which is shown on a local rating list;

  3. (c)

     any sum receivable in respect of the disposal of land;

• “subsidiary” has the meaning given by section 736 of the Companies Act 1985^f1;

• “year”, unless the context otherwise requires, means a chargeable financial year;

and in relation to any year “relevant preceding year” means the year ending immediately before the year in question.