Paragraph 7 Apportionment of housing costs

Where the dwelling occupied as the home is a composite hereditament and—

the amounts applicable under this Schedule are to be such proportion of the amounts applicable in respect of the hereditament or premises as a whole as is equal to the proportion of the rateable value of the hereditament attributable to the part of the hereditament used for the purposes of a private tenancy or, in Scotland, the proportion of the net annual value of the premises apportioned to the part occupied as a dwelling house.

Subject to sub-paragraph (1) and the following provisions of this paragraph, where the dwelling occupied as the home is a composite hereditament, the amount applicable under this Schedule is to be the relevant fraction of the amount which would otherwise be applicable under this Schedule in respect of the dwelling occupied as the home.

For the purposes of sub-paragraph (2), the relevant fraction is to be obtained in accordance with the formula—

where—

• A is the current market value of the claimant's interest in that part of the composite hereditament which is domestic property within the meaning of section 66 of the Act of 1988;

• B is the current market value of the claimant's interest in that part of the composite hereditament which is not domestic property within that section.

In this paragraph—

• “composite hereditament” means—

  1. (a)

     as respects England and Wales, any hereditament which is shown as a composite hereditament in a local non-domestic rating list;

  2. (b)

     as respects Scotland, any lands and heritages entered in the valuation roll which are part residential subjects within the meaning of section 26(1) of the Act of 1987;

• F3“local non-domestic rating list” means a list compiled and maintained under section 41(1) of the Act of 1988;

• “local non-domestic rating list” means—

  1. (a)

     as respects England, a list compiled and maintained under section 41(1) of the Act of 1988;

  2. (b)

     as respects Wales, a list compiled and maintained under section 41ZA of the Act of 1988;

  “the Act of 1987” means the Abolition of Domestic Rates Etc. (Scotland) Act 1987 F4;

• “the Act of 1988” means the Local Government Finance Act 1988 F5.

Where responsibility for expenditure which relates to housing costs met under this Schedule is shared, the amounts applicable are to be calculated by reference to the appropriate proportion of that expenditure for which the claimant is responsible.