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Section 20 Limitation of service charges: consultation requirementsF1C1C2

England and Wales

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

(1)

Where this section applies to any qualifying works or qualifying long term agreement, the relevant contributions of tenants are limited in accordance with subsection (6) or (7) (or both) unless the consultation requirements have been either—

(a)

complied with in relation to the works or agreement, or

(b)

F2except in the case of works to which section 20D applies, dispensed with in relation to the works or agreement by (or on appeal from) F3the appropriate tribunal.

(2)

In this section “relevant contribution”, in relation to a tenant and any works or agreement, is the amount which he may be required under the terms of his lease to contribute (by the payment of service charges) to relevant costs incurred on carrying out the works or under the agreement.

(3)

This section applies to qualifying works if relevant costs incurred on carrying out the works exceed an appropriate amount.

(4)

The Secretary of State may by regulations provide that this section applies to a qualifying long term agreement—

(a)

if relevant costs incurred under the agreement exceed an appropriate amount, or

(b)

if relevant costs incurred under the agreement during a period prescribed by the regulations exceed an appropriate amount.

(5)

An appropriate amount is an amount set by regulations made by the Secretary of State; and the regulations may make provision for either or both of the following to be an appropriate amount—

(a)

an amount prescribed by, or determined in accordance with, the regulations, and

(b)

an amount which results in the relevant contribution of any one or more tenants being an amount prescribed by, or determined in accordance with, the regulations.

(6)

Where an appropriate amount is set by virtue of paragraph (a) of subsection (5), the amount of the relevant costs incurred on carrying out the works or under the agreement which may be taken into account in determining the relevant contributions of tenants is limited to the appropriate amount.

(7)

Where an appropriate amount is set by virtue of paragraph (b) of that subsection, the amount of the relevant contribution of the tenant, or each of the tenants, whose relevant contribution would otherwise exceed the amount prescribed by, or determined in accordance with, the regulations is limited to the amount so prescribed or determined.

Annotations

Textual amendments

F1

Ss. 20, 20ZA substituted (26.7.2002 for E. for certain purposes otherwise 31.10.2003 and 1.1.2003 for W. for certain purposes and otherwise 30.3.2004) for s. 20 by 2002 c. 15, s. 151; S.I. 2002/1912, art. 2(c); S.I. 2002/3012, art. 2(c); S.I. 2003/1986, art. 3(1) (subject to art. 3(2)-(7)); S.I. 2004/669, art. 2(d) (subject to art. 2(d)(i)-(vi))

F2

Words in s. 20(1)(b) inserted (1.4.2023 for specified purposes) by Building Safety Act 2022 (c. 30), ss. 133(2), 170(5); S.I. 2023/362, reg. 2(1)(g)

F3

Words in s. 20(1)(b) substituted (1.7.2013) by The Transfer of Tribunal Functions Order 2013 (S.I. 2013/1036), art. 1, Sch. 1 para. 50 (with Sch. 3)

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)

Ss. 18-30B extended (30.9.2003 and 28.2.2005 for E. for certain purposes and 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)

C2

S. 20 applied (E.) (31.10.2003) by The Service Charges (Consultation Requirements) (England) Regulations 2003 (S.I. 2003/1987), reg. 4(1)