4.—(1) This paragraph defines “net NHS expenditure”, “net NHS wholesale income”, “net purchase amount” and “net sales income” for the purposes of these Regulations.
(2) “Net NHS expenditure” means the total amount paid (in pounds sterling) by a UK producer for UK health service products—
(a)excluding value added taxes, and
(b)after the deduction of—
(i)all discounts and payments, and,
(ii)the value of all payments or benefits in kind,
received in connection with the purchase of those products;
(3) “Net NHS wholesale income” means a UK producer's total income (in pounds sterling) from the distribution by way of wholesale dealing of UK health service products—
(a)excluding value added taxes, and
(b)after the deduction of—
(i)all discounts and payments, and
(ii)the value of all payments or benefits in kind,
given in connection with the supply of those products.
(4) “Net purchase amount”, in relation to the purchase of a health service product by a UK producer, means the amount paid (in pounds sterling) by the producer for the product—
(a)including any delivery or supply charge (however named) paid in connection with the purchase, but
(b)after the deduction of—
(i)all discounts and payments, and
(ii)the value of all payments or benefits in kind,
received in connection with the purchase.
(5) “Net sales income”, in relation to the supply of a health service product by a UK producer, means the producer's income (in pounds sterling) from the supply of the product—
(a)including any delivery or supply charge (however named) charged in connection with the supply, but
(b)excluding value added taxes, and
(c)after the deduction of—
(i)all discounts and payments, and
(ii)the value of all payments or benefits in kind,
given in connection with the supply.
(6) For the purposes of sub-paragraphs (2) to (5), it does not matter whether a discount, payment, payment or benefit in kind can be attributed to the supply or, as the case may be, purchase of a particular health service product.