CSE3880 - How the conditions are to be interpreted: ‘Directly Necessary’ services: How may ‘directly necessary’ services be identified? Use of special methods by members of CSGs (guidance effective from 15 August 2018)

Where the member uses a special method (PE 33000) or a combined non-business/special method (PE33500), the appropriate percentage to be used would ordinarily be the overall residual recovery rate. The exception is where the recharged services are used solely within one or more sectors when the relevant sector (or combined sectors) percentage recovery rate is to be used.