Regulation 5.4 Rule 5

The discount rate for the whole of the discount period to be used in calculating the discount factor shall be determined as follows—

(a)

in a case where the sterling discount rate is to apply (see Rule 1), the discount rate shall be found from the formula—

(A - 2.3 per cent.), or nil per cent., whichever is the greater;

(b)

in a case where a foreign currency discount rate is to apply (see regulation 5), the discount rate shall be found from the formula—

(A - 2.3 per cent.) + (B - C), or nil per cent., whichever is the greater.