Paragraph 5 Apportionment of housing costsF1

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

the amounts applicable under this Schedule shall 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 shall 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 shall 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—

F2“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—

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

“the Act of 1988" means the Local Government Finance Act 1988.

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