Income Related Rent : Contents
Non-abating cap
If the client's rate of Income Related Rent is greater than what they were paying as rent prior to the change and they were getting Tenure Protection Allowance or Special Transfer Allowance then they are eligible for a non-abating cap.
Example of non-abating cap
Rent payable before 1 December 2000 | $115 |
Tenure Protection Allowance paid | $11 |
Net rent on 1 December 2000 | $104 = A |
Income Related Rent calculated on 1 December | $180 = B |
Cap (discount) (= B - A) | $76 = C |
Cumulative Rent (= Net rent on 1 December 2000 as not abated) | $104 = D |
Calculated rate of Income Related Rent on 14 April 2023 | $200 = E |
Rent charged as at 14 April 2023 (lesser of D and E) | $104 |
