§ The United Kingdom shall be granted a correction in respect of budgetary imbalances. This correction shall consist of a basic amount and an adjustment. The adjustment shall correct the basic amount to a reference compensation amount.
§ 1. The basic amount shall be established by:
- (a) calculating the difference, in the preceding financial year, between:
- —the percentage share of the United Kingdom in the sum total of the payments referred to in Article 2(1)(c) and (d) made during the financial year, including adjustments at the uniform rate in respect of earlier financial years, and
- —the percentage share of the United Kingdom in total allocated expenditure;
- (b) applying the difference thus obtained to total allocated expenditure;
- (c) multiplying the result by 0.66.
§ 2. The reference compensation shall be the correction resulting from application of (a), (b) and (c) below, corrected by the effects arising for the United Kingdom from the changover to capped VAT and the payments referred to in Article 2(1)(d).
§ It shall he established by:
- (a) calculating the difference, in the preceding financial year, between:
- —the percentage share of the United Kingdom in the sum total of VAT payments which would have been made during that financial year, including adjustments in respect of earlier financial years, for the amounts financed by the resources referred to in Article 2(1)(c) and (d) if the uniform VAT rate had been applied to non-capped bases, and
- —the percentage share of the United Kingdom in total allocated expenditure;
- (b) applying the difference thus obtained to total allocated expenditure;
- (c)—multiplying the result by 0.66;
- (d)—subtracting the payments by the United Kingdom taken into account in the first indent of 1(a) from those taken into account in the first indent of 2(a);
- (e) subtracting the amount calculated at (d) from the amount calculated at (c).
§ 3. The basic amount shall be adjusted in such a way as to correspond to the reference compensation amount.