Paragraph 2 Reasonable market rent
Where the rent officer determines a reasonable market rent and the amount of eligible rent exceeds the reasonable market rent less ineligible amounts, the amount to be deducted from allowances granted in respect of the period beginning with the relevant date and ending with the termination date shall be–
(a)
an amount equal to 100% of the excess or the amount of the allowances granted, whichever is the lower, or
(b)
where paragraph 5 applies, the difference between–
(i)
the amount determined in accordance with sub-paragraph (a) of this paragraph; and
(ii)
the amount obtained by dividing that amount by 97 and multiplying the quotient by 50.