Clients who have been hit hard by the pandemic maybe worried sick that they can’t pay the rent for their business premises and so face eviction.
The good news is that the moratorium against forfeiture of a commercial lease for non-payment of rent, which was due to end on 25 June 2021, has been extended to 25 March 2022.
The temporary restriction stopping landlords from bringing Commercial Rent Arrears Recovery (CRAR) proceedings against commercial tenants in arrears has also been extended to 25 March 2022.
The temporary prohibition that stops landlords from using statutory demands against commercial tenants who are in arrears of rent because of COVID-19 has also been extended, but only to 30 September 2021. This prevents the landlord from petitioning the court to have the tenant wound up if they do not pay a statutory demand for rent within 21 days.
The rent arrears don’t disappear once these restrictions are lifted, and businesses should pay their rent as soon as they are able to trade from their premises again. However, the government is proposing to bring in a new law to require landlords and tenants to go to arbitration to agree to waive some portion of the unpaid rent that built up during the pandemic.
Written by the Tax Advice Network