Some providers have sought clarification about the application of indexation to lapsing approvals: whether for renewal applications or when making new applications seeking an increase in price.
In either event, when an application is lapsing and a fresh approval is sought (either a renewal of the same price or a new application for a higher price), under section 29 of the Fees and Payments Principles 2014 (No 2), the approved price cannot be indexed until 12 months after the day of approval.
Providers have a choice between using the shorter renewal process if they are not seeking an immediate price increase, or to apply using the standard application form for a higher price. Either way, there will be a 12 month period before indexation can be applied (section 29 of the Fees and Payments Principles 2014 (No 2).