Under-occupancy deduction
35.—(1) A deduction for under-occupancy is to be made under this paragraph where the number of bedrooms in the accommodation exceeds the number of bedrooms to which the renter is entitled under paragraphs 7 to 11.
(2) Where a deduction is to be made, the amount of the deduction is to be determined by the formula—
where—
“A”—
in relation to any deduction under paragraph 33, is the amount resulting from step 2 or 3 in that paragraph (as the case may be), or
in relation to any deduction under paragraph 34(3), is the amount resulting from step 3 in paragraph 34(2);
“B” is the relevant percentage.
(3) The relevant percentage is 14% in the case of one excess bedroom.
(4) The relevant percentage is 25% in the case of 2 or more excess bedrooms.
(5) No deduction for under-occupation is to be made in calculating the amount of the renter’s housing costs element under this Part in any case to which regulation 27(4) to (6) (equity–sharing lease) applies.