- Latest available (Revised)
- Original (As enacted)
Tribunals, Courts and Enforcement Act 2007, Cross Heading: Commercial rent arrears recovery is up to date with all changes known to be in force on or before 06 September 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
(1)A landlord under a lease of commercial premises may use the procedure in Schedule 12 (taking control of goods) to recover from the tenant rent payable under the lease.
(2)A landlord's power under subsection (1) is referred to as CRAR (commercial rent arrears recovery).
Modifications etc. (not altering text)
C1S. 72(1) applied (prosp.) by 1925 c. 20 s. 190(5) (as substituted by Tribunals, Courts and Enforcement Act 2007 (c. 15), ss. 86, 148, Sch. 14 para. 27(3))
C2S. 72(1) applied by 1925 c. 20, s. 190(5) (as substituted (6.4.2014) by Tribunals, Courts and Enforcement Act 2007 (c. 15), s. 148, Sch. 14 para. 27(3) (with s. 89); S.I. 2014/768, art. 2(1)(b))
Commencement Information
I1S. 72 in force at 6.4.2014 by S.I. 2014/768, art. 2(1)(a)
(1)In this Chapter “landlord”, in relation to a lease, means the person for the time being entitled to the immediate reversion in the property comprised in the lease.
(2)That is subject to the following.
(3)In the case of a tenancy by estoppel, a person is “entitled to the immediate reversion” if he is entitled to it as between himself and the tenant.
(4)If there are joint tenants of the immediate reversion, or if a number of persons are entitled to the immediate reversion as between themselves and the tenant—
(a)“landlord” means any one of them;
(b)CRAR may be exercised to recover rent due to all of them.
(5)If the immediate reversion is mortgaged, “landlord” means—
(a)the mortgagee, if he has given notice of his intention to take possession or enter into receipt of rents and profits;
(b)otherwise, the mortgagor.
(6)Subsection (5) applies whether the lease is made before or after the mortgage is created, but CRAR is not exercisable by a mortgagee in relation to a lease that does not bind him.
(7)Where a receiver is appointed by a court in relation to the immediate reversion, CRAR is exercisable by the receiver in the name of the landlord.
(8)Any authorisation of a person to exercise CRAR on another's behalf must be in writing and must comply with any prescribed requirements.
(9)This Chapter applies to any other person entitled to exercise CRAR as it applies to a landlord.
Commencement Information
I2S. 73(1)-(7) (9) in force at 6.4.2014 by S.I. 2014/768, art. 2(1)(a)
I3S. 73(8) in force at 15.7.2013 for specified purposes by S.I. 2013/1739, art. 3(c)
I4S. 73(8) in force at 6.4.2014 in so far as not already in force by S.I. 2014/768, art. 2(1)(a)
(1)“Lease” means a tenancy in law or in equity, including a tenancy at will, but not including a tenancy at sufferance.
(2)A lease must be evidenced in writing.
(3)References to a lease are to a lease as varied from time to time (whether or not the variation is in writing).
(4)This section applies for the purposes of this Chapter.
Commencement Information
I5S. 74 in force at 6.4.2014 by S.I. 2014/768, art. 2(1)(a)
(1)A lease (A) is of commercial premises if none of the demised premises is—
(a)let under lease A as a dwelling,
(b)let under an inferior lease (B) as a dwelling, or
(c)occupied as a dwelling.
(2)The “demised premises” in this section include anything on them.
(3)“Let as a dwelling” means let on terms permitting only occupation as a dwelling or other use combined with occupation as a dwelling.
(4)Premises are not within subsection (1)(b) if letting them as a dwelling is a breach of a lease superior to lease B.
(5)Premises are not within subsection (1)(c) if occupying them as a dwelling is a breach of lease A or a lease superior to lease A.
(6)This section applies for the purposes of this Chapter.
Commencement Information
I6S. 75 in force at 6.4.2014 by S.I. 2014/768, art. 2(1)(a)
(1)“Rent” means the amount payable under a lease (in advance or in arrear) for possession and use of the demised premises, together with—
(a)any interest payable on that amount under the lease, and
(b)any value added tax chargeable on that amount or interest.
(2)“Rent” does not include any sum in respect of rates, council tax, services, repairs, maintenance, insurance or other ancillary matters (whether or not called “rent” in the lease).
(3)The amount payable for possession and use of the demised premises, where it is not otherwise identifiable, is to be taken to be so much of the total amount payable under the lease as is reasonably attributable to possession and use.
(4)Where a rent is payable under or by virtue of Part 2 of the Landlord and Tenant Act 1954 (c. 56), the amount payable under the lease for possession and use of those premises is to be taken to be that rent.
(5)This section applies for the purposes of this Chapter except sections 71 and 85.
Commencement Information
I7S. 76 in force at 6.4.2014 by S.I. 2014/768, art. 2(1)(a)
(1)CRAR is not exercisable except to recover rent that meets each of these conditions—
(a)it has become due and payable before notice of enforcement is given;
(b)it is certain, or capable of being calculated with certainty[F1;
(c)it is not excluded from recovery using CRAR by paragraph 4 of Schedule 2 to the Commercial Rent (Coronavirus) Act 2022 (temporary moratorium on enforcement of protected rent debts).]
(2)The amount of any rent recoverable by CRAR is reduced by any permitted deduction.
(3)CRAR is exercisable only if the net unpaid rent is at least the minimum amount immediately before each of these—
(a)the time when notice of enforcement is given;
(b)the first time that goods are taken control of after that notice.
(4)The minimum amount is to be calculated in accordance with regulations.
(5)The net unpaid rent is the amount of rent that meets the conditions in subsection (1), less—
(a)any interest or value added tax included in that amount under section 76(1)(a) or (b), and
(b)any permitted deductions.
(6)Regulations may provide for subsection (5)(a) not to apply in specified cases.
(7)Permitted deductions, against any rent, are any deduction, recoupment or set-off that the tenant would be entitled to claim (in law or equity) in an action by the landlord for that rent.
Textual Amendments
F1S. 77(1)(c) inserted (24.3.2022) by Commercial Rent (Coronavirus) Act 2022 (c. 12), s. 31(4), Sch. 2 para. 4(4) (with s. 30, Sch. 4 para. 4)
Commencement Information
I8S. 77(1)-(3) (5) (7) in force at 6.4.2014 by S.I. 2014/768, art. 2(1)(a)
I9S. 77(4)(6) in force at 15.7.2013 for specified purposes by S.I. 2013/1739, art. 3(d)
I10S. 77(4)(6) in force at 6.4.2014 in so far as not already in force by S.I. 2014/768, art. 2(1)(a)
(1)If notice of enforcement is given in exercise (or purported exercise) of CRAR the court may make either or both of these orders on the application of the tenant—
(a)an order setting aside the notice;
(b)an order that no further step may be taken under CRAR, without further order, in relation to the rent claimed.
(2)Regulations may make provision about—
(a)the further orders that may be made for the purposes of subsection (1)(b);
(b)grounds of which the court must be satisfied before making an order or further order.
(3)In this section “the court” means the High Court or [F2the county court], as rules of court may provide.
Textual Amendments
F2Words in s. 78(3) substituted (22.4.2014) by Crime and Courts Act 2013 (c. 22), s. 61(3), Sch. 9 para. 52; S.I. 2014/954, art. 2(c) (with art. 3) (with transitional provisions and savings in S.I. 2014/956, arts. 3-11)
Commencement Information
I11S. 78(1)(3) in force at 6.4.2014 by S.I. 2014/768, art. 2(1)(a)
I12S. 78(2) in force at 15.7.2013 for specified purposes by S.I. 2013/1739, art. 3(e)
I13S. 78(2) in force at 6.4.2014 in so far as not already in force by S.I. 2014/768, art. 2(1)(a)
(1)When the lease ends, CRAR ceases to be exercisable, with these exceptions.
(2)CRAR continues to be exercisable in relation to goods taken control of under it—
(a)before the lease ended, or
(b)under subsection (3).
(3)CRAR continues to be exercisable in relation to rent due and payable before the lease ended, if the conditions in subsection (4) are met.
(4)These are the conditions—
(a)the lease did not end by forfeiture;
(b)not more than 6 months has passed since the day when it ended;
(c)the rent was due from the person who was the tenant at the end of the lease;
(d)that person remains in possession of any part of the demised premises;
(e)any new lease under which that person remains in possession is a lease of commercial premises;
(f)the person who was the landlord at the end of the lease remains entitled to the immediate reversion.
(5)In deciding whether a person remains in possession under a new lease, section 74(2) (lease to be evidenced in writing) does not apply.
(6)In the case of a tenancy by estoppel, the person who was the landlord remains “entitled to the immediate reversion” if the estoppel with regard to the tenancy continues.
(7)A lease ends when the tenant ceases to be entitled to possession of the demised premises under the lease together with any continuation of it by operation of an enactment or of a rule of law.
Commencement Information
I14S. 79 in force at 6.4.2014 by S.I. 2014/768, art. 2(1)(a)
(1)This section applies to the exercise of CRAR where the premises concerned are an agricultural holding.
(2)CRAR is not exercisable to recover rent that became due more than a year before notice of enforcement is given.
(3)For the purposes of subsection (2), deferred rent becomes due at the time to which payment is deferred.
(4)“Deferred rent” means rent the payment of which has been deferred, according to the ordinary course of dealing between the landlord and the tenant, to the end of a quarter or half-year after it legally became due.
(5)The permitted deductions under section 77(7) at any time include any compensation due to the tenant in respect of the holding, under the 1986 Act or under custom or agreement, that has been ascertained at that time.
(6)In this section—
the “1986 Act” means the Agricultural Holdings Act 1986 (c. 5);
“agricultural holding” has the meaning given by section 1 of the 1986 Act.
Commencement Information
I15S. 80 in force at 6.4.2014 by S.I. 2014/768, art. 2(1)(a)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: