Schedule 8: Remediation costs under qualifying leases Paragraph 7: Annual limit on service charges Effect
Paragraph 7 provides for an annual limit on service charges in relation to historical building safety defects.
	Sub-paragraph (2) defines a "relevant service charge" for the purposes of this paragraph as a service charge under a qualifying lease (to which see section 119) in respect of a relevant measure (to which see paragraph 1) relating to a relevant defect (to which see section 120). This means that a relevant service charge is defined as one relating to historical building safety costs.
	Sub-paragraph (1) makes provision for an annual limit on relevant service charges by setting an annual limit on relevant service charges at one tenth of the permitted maximum (to which see paragraphs 5 and 6).
	Where a landlord seeks to levy a relevant service charge, then that service charge is only payable if the sum of that particular service charge (as set out in sub-paragraph (1)(a)), and the total amount of relevant service charges payable in the past 12 months (as set out in sub-paragraph (1)(b)), are not higher than one tenth of the permitted maximum. The effect of this provision is that service charges relating to historical building safety defects cannot exceed one tenth of the permitted maximum in any given 12-month period.