Part 3Enforcement by taking control of goods

Chapter 2Rent arrears recovery

Right to rent from sub-tenant

I182Off-setting payments under a notice

1

For any amount that a sub-tenant pays under a notice under section 81, he may deduct an equal amount from the rent that would be due to his immediate landlord under the sub-lease.

2

If an amount is deducted under subsection (1) or this subsection from rent due to a superior sub-tenant, that sub-tenant may deduct an equal amount from any rent due from him under his sub-lease.

3

Subsection (1) applies even if the sub-tenant's payment or part of it is not due under the notice, if it is not due because—

a

the notified amount has already been paid (wholly or partly otherwise than under the notice), or

b

the notice has been replaced by a notice served on another sub-tenant.

4

That is subject to the following.

5

Subsection (1) does not apply if the landlord withdraws the notice before the payment is made.

6

Where the notified amount has already been paid (or will be exceeded by the payment), subsection (1) does not apply (or does not apply to the excess) if the sub-tenant has notice of that when making the payment.

7

Subsection (1) does not apply if, before the payment is made, payments under the notice at least equal the notified amount.

8

Subsection (1) does not apply to a part of the payment if, with the rest of the payment, payments under the notice at least equal the notified amount.

9

Where the notice has been replaced by one served on another sub-tenant, subsection (1) does not apply if the sub-tenant has notice of that when making the payment.