Article 4 Inflation allowances: other works

The inflation allowance for the purposes of paragraph 16B(3)(a) of Part III of Schedule 6 to the Housing Act 1985 shall be calculated by the formula—

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

The inflation allowance for the purposes of paragraph 16B(3)(b) of Part III of Schedule 6 to the Housing Act 1985 shall be calculated by the formula—

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

In this article—

A=the amount shown in the estimates as the estimated annual average amount,

C=the index figure relating to the date on which the tenant is required to pay the relevant charge for which the inflation allowance is being calculated, or, if earlier, the date the initial period ends,

I=the inflation allowance,

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), and

R=the average rate produced by averaging over the reference period all works for which estimates are contained in the notice.