Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 104
United Kingdom
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The most practical route for the majority of tenants will be some form of temporary
adjustment to the rent payable under the lease, from a switch from quarterly to
monthly rent payments, to a rental holiday or deferment or even a full rent-free period.
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Landlords in the UK are being encouraged to approach negotiations with a degree of
flexibility and it may become increasingly difficult for landlords to resist some nod to
the gravity of the situation faced by the whole business community.
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A number of practical tips for both landlords and tenants is here: COVID-19 Impact
on Landlords and Tenants
Litigation
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Are the courts
operating?
In the England and Wales, with the help of some technological innovation such as the use
of video conferencing tools, the civil courts are operating largely ‘business as usual’.
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On 19 March 2020, the Business and Property Courts of England and Wales issued
a protocol regarding remote hearings, providing that remote hearings should take
place wherever possible. Where a remote hearing is not possible, then the Court
has only two solutions: (1) proceed with the matter in court; or (2) adjourn because a
remote hearing is not possible. The protocol emphasises the need for the court and
parties to be proactive in relation to forthcoming hearings. Subsequent guidance
from the senior judiciary and from case-law has been consistent that remote hearings
are to be the norm for the foreseeable future wherever possible even in more
complex cross-jurisdictional cases.
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Similar methods are being employed to deal with arbitration hearings. To find out
more information, see here: COVID-19 and Hearings in International Arbitration
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The cash grants being offered under the UK Government’s Coronavirus Job Retention
Scheme mentioned is closely linked to HMRC’s existed pay-as-you-earn (PAYE) tax
withholding system.
Tax
Has any new
legislation been
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introduced in light
of COVID-19?
Payments of VAT for the period from 20 March 2020 until 30 June 2020 may be
deferred until April 2021, regardless of the type or size of business, although the VAT
returns must still be made. However, VAT refunds and reclaims will be paid by HMRC
as normal to aid businesses’ cashflow. HMRC will also consider extending payment
deadlines for customs duty and import VAT on a case-by-case basis for importers
facing severe financial difficulties as a direct result of COVID-19.
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Income tax self-assessment payments for the self-employed, including individual
partners in partnerships, that are otherwise due on 31 July 2020 will also be deferred
until 31 January 2021.
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All businesses in the hospitality and retail sectors irrespective of their rateable value
are exempted from paying business rates this tax year.
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A £25,000 grant will also be available to businesses with smaller retail, hospitality
and leisure premises that have a rateable value between £15,000 and £51,000.
Government measures in key jurisdictions
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