38Adjustment of contributions to outgoings

38 Adjustment of contributions to outgoings

(1)  If the finalised report of an auditor, provided to a landlord and tenant under section 37(4)(b) , states that the outgoings, as specified in the written estimate of outgoings provided to the tenant under section 36(1) , have not been expended, and charged, in accordance with the estimate and the relevant retail lease, there is to be an adjustment between the landlord and tenant for the relevant accounting period during the term of the retail lease to take account of any underpayment or overpayment by the tenant in respect of outgoings during that accounting period.

(2)  An adjustment of outgoings under subsection (1) in respect of an accounting period is to take place –

(a) within one month after the landlord gives the tenant the written estimate of outgoings under section 36(1) for the accounting period; or

(b) within 4 months after the end of the relevant accounting period –

whichever is earlier.

(3)  If the finalised report of an auditor, provided to a landlord and tenant under section 37(4)(b) , states that the outgoings, as specified in the written statement of outgoings provided to the tenant under section 36(4) , have not been expended, and charged, in accordance with the statement and the relevant retail lease, there is to be an adjustment between the landlord and tenant for the relevant accounting period during the term of the retail lease to take account of any underpayment or overpayment by the tenant in respect of outgoings during that period.

(4)  An adjustment of outgoings under subsection (3) in respect of an accounting period is to take place –

(a) within one month after the landlord gives the tenant a copy of the written statement of outgoings under section 36(4) for the accounting period; or

(b) within 4 months after the end of the relevant accounting period –

whichever is earlier.