Tribunals, Courts and Enforcement Act 2007

Tribunals, Courts and Enforcement Act 2007

2007 CHAPTER 15

Part 3: Enforcement by Taking Control of Goods

Commentary on Sections: Part 3

Section 76: Rent

368. This section defines rent for the purposes of its recovery by CRAR, as the sum payable by the tenant for the possession and use of the premises under the lease, including any interest payable on that sum and any VAT chargeable on the sum or the interest.

369. Any amounts not directly attributable to the tenant’s possession and use of the premises do not qualify e.g. council tax. This is the case even if the lease defines them as rent.

370. The rent may be merged with other sums so that it is payable as a combined figure, the individual figure not being known or able to be ascertained. In this situation, the rent will be considered to be that portion of the total sum as reasonably reflects the amount payable for the possession and use of the premises.

371. Rent which is payable under or by virtue of Part 2 of the Landlord and Tenant Act 1954 (c. 56) is deemed to be rent as defined by the section, and is therefore recoverable by CRAR. Part 2 of the 1954 Act gives security of tenure to business leases, so that they are not ended by the expiry of the contractual term, but continue until terminated in accordance with the provisions of Part 2.

372. The definition of rent given by this section, however, is not congruent with the meaning of rent at section 71 (abolition of common law right) because section 71 relates to a wider range of rents for which the right to the old remedy of distress for rent exists. For that reason, the interpretation of “rent” in this section does not apply to section 71 (see section 87). The definition also does not apply to section 85 which defines “rent” for its own purposes.