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Section 18 Meaning of “service charge” and “relevant costs”.C5C1C2C3

England and Wales

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

In the following provisions of this Act “service charge” means an amount payable by a tenant of a F1dwelling as part of or in addition to the rent—

C4(a)

which is payable, directly or indirectly, for services, repairs, maintenance F2, improvements or insurance or the landlord’s costs of management, and

(b)

the whole or part of which varies or may vary according to the relevant costs.

(2)

The relevant costs are the costs or estimated costs incurred or to be incurred by or on behalf of the landlord, or a superior landlord, in connection with the matters for which the service charge is payable.

(3)

For this purpose—

(a)

“costs” includes overheads, and

(b)

costs are relevant costs in relation to a service charge whether they are incurred, or to be incurred, in the period for which the service charge is payable or in an earlier or later period.

Annotations

Textual amendments

F1

Word substituted by Landlord and Tenant Act 1987 (c. 31, SIF 75:1), s. 41, Sch. 2 para. 1

F2

Word in s. 18(1)(a) inserted (30.9.2003 for E. and 30.3.2004 for W.) by 2002 c. 15, ss. 150, 181(1), Sch. 9 para. 7 (with para. 13); S.I. 2003/1986, art. 2(c)(i) (subject to Sch. 2); S.I. 2004/669, art. 2(c)(i) (subject to Sch. 2)

Modifications

C1

Ss. 18-30 modified (30.9.2003 for E. and 30.3.2004 for W.) by 2002 c. 15, ss. 102, 181(1), Sch. 7 para. 4; S.I. 2003/1986, art. 2(a); S.I. 2004/669 {art. 2(a)}

C2

Ss. 18-30 modified (1.4.1995) by S.I. 1995/401, art. 18, Sch. para. 10(b)

Ss. 18-30 extended (5.7.1994) by 1994 c. 19, ss. 39, 66(2)(b), Sch. 13 para. 23(b) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2))

C3

Ss. 18-30B extended (30.9.2003 and 28.2.2005 for E. for certain purposes otherwise prosp. and 30.3.2004 and 31.5.2005 for W. for certain purposes and otherwise prosp.) by 2002 c. 15, ss. 172, 181(1); S.I. 2003/1986, art. 2(c)(ii) (subject to Sch. 2); S.I. 2004/669, art. 2(c)(ii) (subject to Sch. 2); S.I. 2004/3056, art. 3(h) (subject to art. 4 (as amended by S.I. 2005/193, art. 2)); S.I. 2005/1353, art. 2(h) (subject to art. 3)

C4

S. 18(1)(a): power to amend conferred (30.9.2003 for E. and 30.3.2004 for W.) by 2002 c. 15, ss. 150, 181(1), Sch. 9 para. 13(a); S.I. 2003/1986, art. 2(c)(i) (subject to Sch. 2); S.I. 2004/669, art. 2(c)(i) (subject to Sch. 2)

C5

S. 18 amended by Local Government Act 1985 (c. 51, SIF 81:1), s. 57(7), Sch. 13 para. 24 (as substituted by Housing (Consequential Provisions) Act 1985 (c. 71, SIF 61), s. 4, Sch. 2 para. 61) and Housing Act 1988 (c. 50, SIF 61), s. 79(12)