RETAIL AND COMMERCIAL LEASES ACT 1995 - SECT 33
RETAIL AND COMMERCIAL LEASES ACT 1995 - SECT 33
33—Adjustment of contributions to outgoings based on actual expenditure
properly and reasonably incurred
A retail shop lease is taken to include provision to the following effect:
(a)
within three months after the end of each accounting period, there is to be an
adjustment between the lessor and the lessee to take account of any
under-payment or over-payment by the lessee in respect of those outgoings;
(b) the
adjustment is to be calculated on the basis of the difference between the
total amount of outgoings in respect of which the lessee contributed (that is,
the estimated total expenditure by the lessor on outgoings during the
accounting period) and the total amount actually expended by the lessor in
respect of those outgoings during that period as shown in the auditor's
report, but taking into account only expenditure properly and reasonably
incurred by the lessor in payment of those outgoings;
(c)
contribution by the lessee towards, and expenditure by the lessor in respect
of, repairs and maintenance is not to be taken into account for the purposes
of the adjustment to the extent that the contribution is, and the expenditure
is in respect of, contributions required to be paid into a sinking fund as
referred to in section 29.