Regulation 2 Deductible amount

in paragraph 1 after the words “deductible amount” there shall be inserted the words “in a case where section 11 of the 1992 Act (discounts) does not apply”,

the following shall be inserted after paragraph 1—

“1A.

Subject to paragraph 2 below, the deductible amount in a case where section 11 of the 1992 Act applies is calculated by applying the following formula—

$$\genfrac{}{}{0.1ex}{}{\left(\mathrm{C}-\mathrm{U}\right)\times \mathrm{V}\times \left(1-\mathrm{Z}\right)}{\mathrm{W}}\mathrm{=X}$$

where—

• C, U, V, W and X have the same meanings as in paragraph 1 above, and

• Z is the appropriate percentage for the purposes of section 11(1) of the 1992 Act, expressed as a fraction, or, in a case to which subsection (2) of that section applies, twice the appropriate percentage, expressed as a fraction.”, and

in paragraph 2 for “paragraph 1 above,” there shall be substituted “paragraphs 1 or 1A above, as the case may be,”.