SCHEDULE 5Housing costs element for owner-occupiers
PART 4Calculation of amount of housing costs element for owner-occupiers
Payments to be taken into account8
1
Where an owner-occupier meets the payment condition, liability condition and occupation condition in respect of one or more relevant payments and the qualifying period has ended, each of the relevant payments is to be taken into account for the purposes of the calculation under this Part.
2
No account is to be taken of any amount of a relevant payment to the extent that the conditions referred to in sub-paragraph (1) are not met in respect of that amount.
3
Any particular payment for which an owner-occupier is liable is not to be brought into account more than once, whether in relation to the same or a different owner-occupier (but this does not prevent different payments of the same description being brought into account in respect of an assessment period).
The amount of housing costs element9
The amount of the owner-occupier's housing costs element under this Schedule is F4the amount resulting from paragraph 13 in respect of all relevant payments which are to be taken into account under paragraph 8.
Amount in respect of interest on loansF6C210
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount in respect of alternative finance arrangementsF7C111
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Standard rate to be applied under paragraphs 10 and 11F512
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Amount in respect of service charge payments13
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.
Step 1
Determine the amount of each service charge payment.
Step 2
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)).
Step 3
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;
F1aa
two-weekly payments are multiplied by 26 and divided by 12;
b
four-weekly payments are multiplied by 13 and divided by 12;
c
three-monthly payments are multiplied by 4 and divided by 12; and
d
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, F2subject to sub-paragraph (4A), 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.
F34A
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.
5
“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.