Temporary insolvency measures ending, new law in place

The Corporate Insolvency and Governance Act 2020, which introduced various temporary measures to help protect companies affected by the lockdown restrictions during the pandemic has ended and the new “Commercial Rent (Coronavirus) Act 2022” is now in place.

Business leaders are being advised to seek professional insolvency advice to protect their business.

The new law is now in place to help resolve certain remaining commercial rent debts accrued because of the pandemic.

The “Commercial Rent (Coronavirus) Act 2022” received royal assent last week, which means that a legally binding arbitration process will be available for eligible commercial landlords and tenants who have not already reached an agreement.

This will resolve disputes about certain pandemic-related rent debt and help the market return to normal as quickly as possible.

The law applies to commercial rent debts of businesses including pubs, gyms and restaurants that were mandated to close, in full or in part, from March 2020 until the date restrictions ended for their sector. Debts accrued at other times will not be in scope.

The government encourages commercial landlords and tenants to negotiate their own agreement where possible, so that an arrangement to resolve debt is mutually agreed, instead of resorting to the arbitration process.

Source Financial Accountant click here to read more.

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