The new Code replaces the previous Code (first issued on 19 June 2020, and updated on 6 April 2021 and 9 November 2021) to help landlords and tenants work together to solve arrears issue, and now takes into account new COVID-related laws covering arrears of commercial rents in 2022.
The new laws ringfence arrears of rent built up because COVID forced the tenant to close. There is a binding arbitration process to resolve whether and how arrears can be paid. The Code explains the process, and identifies which evidence is relevant and the principles arbitrators apply when making an award.
The government says that non-eligible landlords and tenants may also find it useful when attempting to resolve unpaid rent debt issues by negotiation.
Operative date
- Now
Recommendation
- Commercial landlords and tenants failing to reach agreement over COVID-related rent arrears should download the Code from the GOV.UK website and consider whether and how it, and the new laws, can help them.
This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.
Copyright © Atom Content Marketing
ICAEW Business Advice Service
Grow your business with trusted business advice. We connect entrepreneurs, start-ups, and SMEs with ICAEW regulated accountancy firms who will provide a free initial consultation without obligation.
