When a Premises Licence Holder becomes insolvent, the holder of the licence dies or is no longer entitled to work in the United Kingdom, the transfer of the premise licence can sometimes be overlooked
When a premises licence holder becomes insolvent, the holder of the licence dies, or is no longer entitled to work in the United Kingdom, the premises licences lapses. Unless urgent action is taken the licence can lapse irrevocably, a fact which is sometimes overlooked.
If within 28 days of that lapse appropriate ‘reinstatement’ action is not taken, the premises licence will have gone forever.
Reinstatement can occur in one of two ways:
- The first is by the freeholder, leaseholder or the Premises Licence Holder’s insolvency practitioner or executor giving an Interim Authority Notice to the Licensing Authority within 28 days of the death or insolvency. Notice must also be given to the local Chief Police Officer within the same period. Once granted, an application to transfer the licence must be made within three months of the interim authority notice being given, otherwise the premises licence lapses again.
- Secondly by making an application to transfer the premises licence, again within 28 days of the death, insolvency or the individual ceasing to be entitled to work in the United Kingdom, and the police must be informed as before. Until the interim authority notice or transfer is in place, no licensable activity can take place after the insolvency or death.
The date when insolvency takes place is not always obvious, and depends on the nature of the insolvency event, for example a company voluntary arrangement (‘CVA’), compulsory liquidation or administration. To avoid missing the 28 day window contact one of our licensing solicitors immediately there is a proposed insolvency.
Sadly, with the COVID-19 pandemic and restaurants across the UK dealing with the highest level of inflation since 1981, the number of insolvencies, and in particular CVAs has risen dramatically. We have assisted many licensed businesses to protect their licences from lapsing during these difficult times.
