8(1)This paragraph applies in relation to any payment of rent under a business tenancy which was paid during the period mentioned in sub-paragraph (2) at a time when—
(a)the tenant owed the landlord an unprotected rent debt in addition to the debt, and
(b)the tenant had not exercised the tenant’s right to appropriate the payment to any particular rent debt.
(2)The period relevant for the purposes of sub-paragraph (1) is the period—
(a)beginning with the day after the last day of the protected period for the debt, and
(b)ending with the day before the first day of the moratorium period for the debt.
(3)During the moratorium period for the debt, the landlord’s right to appropriate the payment must be used to apply the payment to meet the unprotected rent debt before it is applied to the protected rent debt.
(4)If the landlord used that right during the period mentioned in sub-paragraph (2) to appropriate the rent to the debt, then—
(a)the appropriation of the payment to the debt is ineffective to the extent of the unprotected rent debt, and
(b)the payment is to be treated for all purposes as having been appropriated to the unprotected rent debt first.
(5)In this paragraph “unprotected rent debt” has the same meaning as in paragraph 7.
Commencement Information
I1Sch. 2 para. 8 in force at Royal Assent, see s. 31(4)