The basic payment scheme ceiling for any given year is calculated by deducting from the annual national ceiling set out in Annex II all the ceilings calculated in respect of that year in accordance with Articles 42, 47, 51 and 53.

The relevant authority’s share of the basic payment ceiling is the amount which remains for the basic payment scheme in the constituent nation after deducting from the relevant authority’s share of the national ceiling the ceilings set under Articles 42, 47 and 51 and the amount allocated in the constituent nation under Article 53. The relevant authority may increase the amount which represents its share of the basic payment scheme ceiling. That increase may not exceed 3% of the amount which represents its share of the annual national ceiling after deduction of the amount resulting from the application of Article 47(1) for the relevant year.

The relevant authority may review the decision under paragraph 2 on an annual basis.

The total value of all payment entitlements and the national reserve or regional reserves in the constituent nation must equal its share of the basic payment scheme ceiling. The total value of payment entitlements and national reserves and regional reserves in the United Kingdom must equal the basic payment scheme ceiling calculated in accordance with paragraph 1.

If the ceiling F7calculated pursuant to paragraph 1 of this Article is different from that of the previous year as a result of any decision taken by F3the relevant authority in accordance with paragraph 3 of this Article, F2Article 7A,F4Article 14, Article 42(1), F5... the second subparagraph of Article 51(1), or Article 53, F3the relevant authority shall linearly reduce or increase the value of all payment entitlements in order to ensure compliance with paragraph 4 of this Article.