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13.—(1) This paragraph provides for the calculation of the amount to be included in the owner-occupier's housing costs element under this Schedule in respect of relevant payments which are service charge payments.
(2) The amount in respect of the service charge payments is to be calculated as follows.
Determine the amount of each service charge payment.
Determine the period in respect of which each service charge payment is payable and, determine the amount of the payment in respect of a month (see sub-paragraphs (3) and (4)).
If there is more than one service charge payment, add together the amounts determined in step 2.
The result is the amount to be included under this Schedule in respect of service charge payments.
(3) Where the period in respect of which an owner-occupier is liable to make a service charge payment is not a month, an amount is to be calculated as the monthly equivalent, so for example—
(a)weekly payments are multiplied by 52 and divided by 12,
(b)two-weekly payments are multiplied by 26 and divided by 12,
(c)four-weekly payments are multiplied by 13 and divided by 12,
(d)three-monthly payments are multiplied by 4 and divided by 12, and
(e)annual payments are divided by 12.
(4) Where an owner-occupier is liable for service charge payments under arrangements that provide for one or more service charge free periods, subject to sub-paragraph (5) the monthly equivalent is to be calculated over 12 months by reference to the total number of service charge payments which the owner-occupier is liable to make in that 12 month period.
(5) Where sub paragraph (4) applies and the service charge payments in question are-
(a)weekly payments, the total number of weekly service charge payments which the owner-occupier is liable to make in any 12 month period shall be calculated by reference to the formula—
(b)two-weekly payments, the total number of two-weekly service charge payments which the owner-occupier is liable to make in any 12 month period shall be calculated by reference to the formula-
(c)four-weekly payments, the total number of four-weekly service charge payments which the owner-occupier is liable to make in any 12 month period shall be calculated by reference to the formula-
where “SCFP” is the number of service charge free periods in the 12 month period in question.
(6) “Service charge free period” means any period in respect of which the owner-occupier has no liability to make one or more of the service charge payments which are to be taken into account under paragraph 8.