Schedule 8: Remediation costs under qualifying leases Paragraph 10: Paragraphs 2 to 4, 8 and 9: supplementary Effect
Paragraph 10 makes provision supplementary to paragraphs 2 to 4, 8 and 9 which are defined in sub-paragraph (1) as "the relevant paragraphs". These paragraphs set out that certain costs are not payable by leaseholders under service charges and include where the landlord is responsible for a relevant defect (paragraph 2), where the landlord under the lease meets the contribution condition (paragraph 3), where the lease is below a certain value (paragraph 4), in respect of cladding remediation (paragraph 8) and in respect of legal or professional services relating to liability for relevant defects (paragraph 9).
	Sub-paragraph (2) provides that where one of the relevant paragraphs provides that a service charge is not payable, those costs cannot be otherwise passed through any service charge or met from a reserve fund.
	Sub-paragraph (2)(a)(i) prevents any costs which are subject to the cost protections in the relevant paragraphs from being passed through any service charge mechanism (defined as "the relevant provisions", to which see sub-paragraph (3)). "Relevant costs" has the same meaning as in section 18 of the Landlord and Tenant Act 1985.
	"The relevant provisions" are defined in sub-paragraph (3). They are defined as sections 18 to 30 of the Landlord and Tenant Act 1985 which relate to service charges, and section 42 of the Landlord and Tenant Act 1987, which relate to service charges held on trust.
	Sub-paragraph (2)(a)(ii) prevents any costs which are subject to the leaseholder protections from being met from a building’s reserve fund.
	Sub-paragraph (2)(b) provides further protections in respect of service charge amounts and reserve funds. It sets out that, should any payment be made under a lease or met from a reserve fund in respect of a cost which is subject to the leaseholder protections, an adjustment must be made to correct the position. This could be either by reimbursing a leaseholder or reserve fund for the service charge amount or by reducing subsequent service charges payable by leaseholders.
	Sub-paragraph (3) also sets out the definition of "relevant reserve funds" which are protected from being used to meet costs relating to relevant defects. These are a trust fund as defined by section 42 of the Landlord and Tenant Act 1987 or any other fund which is made up of payments from leaseholders for the purposes of meeting costs in connection with the building, such as for the maintenance of the building.
	Sub-paragraph (4) contains a power to expand the provisions in paragraph 10 to non-residential leases.