SCHEDULECalculating the lump sum payment

Deductions from a lump sum payment3

1

The Secretary of State must apply the formula set out in sub-paragraph (4) to calculate a percentage reduction to the applicant’s lump sum payment if the circumstances in sub-paragraph (2) apply.

2

The circumstances referred to in sub-paragraph (1) are where the total value of payment entitlements referred to in sub-paragraph (3) exceeds—

a

the total value of the applicant’s payment entitlements surrendered in accordance with regulation 8 (excluding any payment entitlements leased out after 17th May 2021); and

b

where relevant, the total value of any payment entitlements leased in by the applicant and which have subsequently been surrendered after 17th May 2021.

3

The payment entitlements referred to in sub-paragraph (2) are any payment entitlements activated by the applicant in—

a

claim year 2021;

b

claim year 2020, if no payment entitlements were activated by the applicant in claim year 2021; or

c

claim year 2019, if no payment entitlements were activated by the applicant in claim years 2020 or 2021.

4

The formula referred to in sub-paragraph (1) is—

x%=100-PESPEC×100math

5

In sub-paragraph (4)—

a

“x” means the percentage reduction applied to the lump sum payment;

b

“PES” means—

i

the total value of the applicant’s payment entitlements surrendered under regulation 8 (excluding any payment entitlements leased out after 17th May 2021); and

ii

where relevant, the total value of any payment entitlements leased in by the applicant and which have subsequently been surrendered after 17th May 2021; and

c

“PEC” means the total value of any payment entitlements activated by the applicant in—

i

claim year 2021;

ii

claim year 2020, if no payment entitlements were activated by the applicant in claim year 2021; or

iii

claim year 2019, if no payment entitlements were activated by the applicant in claim years 2020 or 2021.

6

If an applicant receives a relevant payment in respect of claim year 2022 or in respect of a later claim year, the Secretary of State must reduce the total amount of the lump sum payment calculated for that applicant by the amount of any such relevant payment.