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The Taking Control Of Goods And (Amendment) (Coronavirus) Regulations 2020 – CRAR Update

The Taking Control of Goods and (Amendment) (Coronavirus) Regulations 2020 – CRAR Update

The Government have amended the Taking Control of Goods and (Amendment) (Coronavirus) Regulations 2020 and came into force from the 25th April and will remain in effect for the duration of the Coronavirus restrictions.

The Government is increasing the minimum amount of rent that must be due before CRAR may be used, to provide businesses with additional protection and flexibility in managing their finances.

Coronavirus Act 2020 amendment to Regulation 52 of the Taking of Control Goods (minimum amount of net unpaid rent for CRAR to become exercisable):

  • Where the notice of enforcement is given after the coming into force of the 2020 Regulations and during the relevant period, the minimum amount of net unpaid rent for the purposes of section 77(3) of the Tribunals, Courts and Enforcement Act 2007 is an amount equal to 90 days’ rent.

Section 77 The rent recoverable:

(3) CRAR is exercisable only if the net unpaid rent is at least the minimum amount immediately before each of these-

(a) the time when notice of enforcement is given;

b) the first time that goods are taken control of after that notice.

These measures are time-limited, and it is the Government’s view that enforcement during the coronavirus period is it very difficult for enforcement agents to comply with social distancing requirements. The Government is, therefore, legislating to ensure a uniform approach is taken across the enforcement industry and requests in all circumstances that creditors take a flexible and sympathetic approach to enforcement proceedings.

During this time of unprecedented disruption, Debt Squared remain available to act across both debt and property service requirements.

Debt Squared

Tel: +44 (0)800 002 9049
Email: helpdesk@debtsquared.com
www.debtsquared.com

The Clearway Group

Debt Squared is a Clearway Group company

Debt Squared

Tel: +44 (0)800 002 9049
Email: helpdesk@debtsquared.com
www.debtsquared.com

The Clearway Group

Debt Squared is a Clearway Group company

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