Gym Trade body urges government to close Coronavirus (COVID-19) Act loophole

Gym Trade body urges government to close Coronavirus (COVID-19) Act loophole

Ukactive, a trade body for gyms and leisure centres, has appealed to the government to close a loophole in the Coronavirus Act 2020 (CA 2020) which allows landlords to take action against commercial tenants during the coronavirus (COVID-19) pandemic. Section 83 of the CA 2020, which bans the forfeiture of commercial leases until 30 June 2020 for non-payment of rent, does not prevent landlords from issuing Commercial Rent Arrears Recovery (CRAR), service of a statutory demand and commencing winding-up proceedings. Evidence gathered by Ukactive shows an increasing number of cases where landlords are issuing legal proceedings against tenants.

UKactive has urged the government to:

• amend the CA 2020 to stipulate that landlords cannot pursue legal action against tenants, such as issuing statutory demand notices and winding up orders

• reduce the pressure on landlords by introducing financial support for a rent holiday, preventing them from resorting to legal action

Source: ukactive says Government has just days to close loophole in Coronavirus Act as landlords threaten legal action against gyms and leisure centres

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