Article 5 Recalculation factor

(1)

Where, in relation to a relevant year, the figure produced by the formula—

\frac{k - K}{K}

in relation to a relevant hereditament is less than −0.05 or greater than 0.05, the recalculation factor in relation to that hereditament for that and every subsequent year is the figure produced by the formula—

T (\frac{k - K}{K})

(2)

In any other case the recalculation factor is 0.

(3)

For the purposes of paragraph (1)—

k is the estimated relevant track length as at 31st March in the relevant preceding year;
K is the estimated relevant track length as at 31st March 2000;
T has the same meaning as in the definition of “the standard formula” in article 2(1).