Service charges
C2C3C418 Meaning of “service charge” and “relevant costs”. C1
1
In the following provisions of this Act “service charge” means an amount payable by a tenant of a F1dwelling as part of or in addition to the rent—
C5a
which is payable, directly or indirectly, for services, repairs, maintenance F2, improvements or insurance or the landlord’s costs of management, and
b
the whole or part of which varies or may vary according to the relevant costs.
2
The relevant costs are the costs or estimated costs incurred or to be incurred by or on behalf of the landlord, or a superior landlord, in connection with the matters for which the service charge is payable.
3
For this purpose—
a
“costs” includes overheads, and
b
costs are relevant costs in relation to a service charge whether they are incurred, or to be incurred, in the period for which the service charge is payable or in an earlier or later period.