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Commercial Rent (Coronavirus) Act 2022

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2“Rent” and “business tenancy”U.K.

This section has no associated Explanatory Notes

(1)Rent”, in relation to a business tenancy, means an amount consisting of one or more of the following—

(a)an amount payable by the tenant to the landlord under the tenancy for possession and use of the premises comprised in the tenancy (whether described as rent or otherwise);

(b)an amount payable by the tenant to the landlord under the tenancy as a service charge;

(c)interest on an unpaid amount within paragraph (a) or (b).

(2)In subsection (1)

(a)a reference to an amount includes any VAT chargeable on that amount;

(b)a reference to the landlord includes a person acting for the landlord (such as a managing agent);

(c)service charge” means an amount—

(i)which is payable (directly or indirectly) for services, repairs, maintenance, improvements, insurance costs or the landlord’s management costs (including management costs of a superior landlord which the landlord is required to pay), and

(ii)which is a fixed amount or an amount that varies or may vary according to the relevant costs (or a combination of the two).

(3)In subsection (2)(c)

(a)insurance costs” includes costs incurred by the landlord in connection with insuring against loss of rent or in complying with obligations under the tenancy either to insure the whole or any part of—

(i)the premises comprised in the tenancy, and

(ii)any common parts of a property which includes those premises,

or to pay the costs of such insurance incurred by any superior landlord;

(b)the relevant costs” means the costs or estimated costs incurred or to be incurred by or on behalf of the landlord in connection with the matter for which the service charge is payable, and for this purpose—

(i)costs” includes overheads, and

(ii)costs are relevant costs in relation to a service charge whether they are incurred, or to be incurred, in the period for which the service charge is payable or in an earlier or later period.

(4)An amount drawn down by the landlord from a tenancy deposit to meet the whole or part of a rent debt is to be treated as unpaid rent due from the tenant to the landlord (and such rent is “paid” where the tenant makes good any shortfall in the deposit).

(5)Business tenancy” means a tenancy to which Part 2 of the Landlord and Tenant Act 1954 applies.

(6)English business tenancy” means a business tenancy comprising premises in England.

(7)Welsh business tenancy” means a business tenancy comprising premises in Wales.

Commencement Information

I1S. 2 in force at Royal Assent, see s. 31(4)

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