Retail Leases Act 2003

A retail premises lease is taken to provide as set out in this section.

There is to be an adjustment between the landlord and tenant for each of the landlord's accounting periods during the term of the lease to take account of any underpayment or overpayment by the tenant in respect of outgoings during that period.

The adjustment is to take place—

within one month after the landlord gives the tenant the outgoings statement under section 47 for the period; or

within 4 months after the end of the period—

The adjustment is to be calculated on the basis of the difference between—

the total amount of outgoings in respect of which the tenant contributed (that is, the estimated total expenditure by the landlord on outgoings during the period); and

the total actual expenditure by the landlord in respect of those outgoings during the period, but taking into account only expenditure properly and reasonably incurred by the landlord in the payment of those outgoings.