# Landlord and Tenant Act 1985, Section 20G: Limitation of variable service charges: insurance costs


(1) Excluded insurance costs are not to be regarded as relevant costs to be taken into account in determining the amount of any variable service charge payable by a tenant.
(2) “Excluded insurance costs” are any costs (whether or not they are expressed as forming part of an insurance premium) that—
(a) are attributable to payments made, or to be made, to arrange or manage insurance, and
(b) are not attributable to a permitted insurance payment.
(3) Payments made to arrange or manage insurance include payments made—
(a) for the purpose of providing an incentive to enter into, or arrange for another person to enter into, a particular contract of insurance;
(b) as remuneration for any work done, however described, in relation to—
(i) a contract of insurance before or after it has been entered into, or
(ii) insurance generally without a particular contract of insurance in contemplation.
(4) A “permitted insurance payment” is a payment of a description specified in regulations made by the appropriate authority.
(5) The regulations may provide that a payment is a permitted insurance payment by reference to—
(a) the kind of person to or in respect of which the payment is made;
(b) the circumstances in which the payment is made;
(c) the method by which the amount of the payment is calculated (which may be a method specified in the regulations);
(d) the nature of its connection with work done, costs incurred or time spent;
(e) any other matter.
(6) In this section, a reference to a payment includes—
(a) a non-monetary benefit;
(b) a right to retain money or a non-monetary benefit instead of paying or giving it to another person.
(7) Regulations under this section—
(a) are to be made by statutory instrument;
(b) may make provision generally or only in relation to specific cases;
(c) may make different provision for different purposes;
(d) may include supplementary, incidental, transitional or saving provision.
(8) A statutory instrument containing regulations under this section (whether alone or with other provision) is subject to the affirmative procedure.

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Source: https://www.legislation.gov.uk/ukpga/1985/70/section/20G (the official version)
Page: https://openlegislation.uk/landlord-and-tenant-act-1985/section-20G
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.