Article 3 Inflation allowances: itemised works

The inflation allowance for the purposes of paragraphs 16B(2) and 16C(3) of Part III of Schedule 6 to the Housing Act 1985 shall be calculated, in respect of each item, by the formula—

$$I=(E\times \frac{C}{P})\times E$$

• C=the index figure relating to the last date in the initial period on which costs were incurred in respect of the item (whether or not such costs were the full costs incurred in respect of that item),

• E=the amount shown in the estimates as the tenant's estimated contribution in respect of that item,

• I=the inflation allowance, and

• P=the index figure relating to the date on which the landlord served the notice on the tenant (taking no account of any steps taken under section 177 of the Housing Act 1985).