Rebates and allowances

3.—(1) For the purposes of section 30(2) of the Act, an authority’s subsidy for the relevant year shall, subject to paragraph (2), be–

(a) in the case of an authority to which articles 4, 5, 6, 7 and 8 do not apply, 97 per cent. of its qualifying expenditure;

(b) in the case of an authority to which at least one of those articles is relevant–

(i) 97 per cent. of so much of its qualifying expenditure as remains after deducting the amount of the rebates or allowances to which each of those articles which is relevant applies; and

(ii) the amount calculated in respect of the rebates or allowances under each such article,

• plus, in each case, the addition, where applicable, under article 9.

(2) Where the authority is the Scottish Special Housing Association or a new town corporation in Scotland, its subsidy for the relevant year shall include a further sum being–

(a) in the case of an authority to which sub-paragraph (a) of paragraph (1) applies, 3.5 per cent. of its qualifying expenditure but subject to the relevant maximum specified in column (2) of Schedule 2;

(b) in the case of an authority to which sub-paragraph (b) of paragraph (1) applies, 3.5 per cent. of so much of its qualifying expenditure as remains after the deduction set out in paragraph (1)(b)(i), but subject to the relevant maximum specified in column (2) of Schedule 2.