Tribunals, Courts and Enforcement Act 2007 (c. 15)

(The document as of February, 2008)

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(a) do not apply to any writ that confers power to use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007, but

(b) apply to any other writ of execution against goods which is issued from the High Court. "

(4) Omit paragraph 8(5).

Health and Social Care (Community Health and Standards) Act 2003 (c. 43)

152 In section 155 of the Health and Social Care (Community Health and Standards) Act 2003 (recovery of NHS charges), in subsection (7) for "by execution issued from the county court" substitute "under section 85 of the County Courts Act 1984".

Criminal Justice Act 2003 (c. 44)

153 The Criminal Justice Act 2003 is amended as follows.

154 (1) Section 154 (general limit on magistrates' power to impose imprisonment) is amended as follows.

(2) In subsections (4) and (6) for "distress" substitute "goods".

(3) After subsection (7) insert--

" (8) In this section references to want of sufficient goods to satisfy a fine or other sum of money have the meaning given by section 79(4) of the Magistrates' Courts Act 1980. "

155 In section 305 (interpretation of Part 12) after subsection (1) insert--

" (1A) In the definition of "sentence of imprisonment" in subsection (1) the reference to want of sufficient distress to satisfy a sum includes a reference to circumstances where--

(a) there is power to use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 to recover the sum from a person, but

(b) it appears, after an attempt has been made to exercise the power, that the person's goods are insufficient to pay the amount outstanding (as defined by paragraph 50(3) of that Schedule). "

Traffic Management Act 2004 (c. 18)

156 In the Traffic Management Act 2004 omit--

(a) section 82(3)(a);

(b) section 83.

Income Tax Act 2007 (c. 3)

157 In section 955(4) of the Income Tax Act 2007 (proceedings before set-off claim is made) after "attachment" insert "or under Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (taking control of goods)".

Section 86

SCHEDULE 14 Rent arrears recovery: amendments

Distress for Rent Act 1689 (c. 5)

1 The Distress for Rent Act 1689 ceases to have effect.

Landlord and Tenant Act 1709 (c. 18)

2 In the Landlord and Tenant Act 1709 omit the following--

(a) section 1;

(b) sections 6 to 8.

Landlord and Tenant Act 1730 (c. 28)

3 In the Landlord and Tenant Act 1730 omit section 5.

Distress for Rent Act 1737 (c. 19)

4 In the Distress for Rent Act 1737 the following cease to have effect--

(a) sections 1 to 10;

(b) sections 16 and 17;

Deserted Tenements Act 1817 (c. 52)

5 The Deserted Tenements Act 1817 ceases to have effect.

Fines and Recoveries Act 1833 (c. 74)

6 (1) In section 67 of the Fines and Recoveries Act 1833 (assignees to recover rent of the lands of a bankrupt), for the words from "or may distrain" to "recovering of rent in arrear;" substitute "or, so far as the power under section 72(1) of the Tribunals, Courts and Enforcement Act 2007 (commercial rent arrears recovery) is exercisable to recover any of those rents and profits, may exercise that power, as if they were the landlord, on behalf of the creditors;".

(2) This paragraph does not extend to Northern Ireland.

Metropolitan Police Courts Act 1840 (c. 84)

7 The Metropolitan Police Courts Act 1840 ceases to have effect.

Execution Act 1844 (c. 96)

8 The Execution Act 1844 ceases to have effect.

Lands Clauses Consolidation Act 1845 (c. 18)

9 (1) In section 11 of the Lands Clauses Consolidation Act 1845 (payment of rents to be charged on tolls) omit the words from "or it shall be lawful" to the end.

(2) This paragraph extends only to England and Wales.

Inclosure Act 1845 (c. 118)

10 In section 112 of the Inclosure Act 1845 (recovery of rents of allotment) for "by distress" substitute "under section 72(1) of the Tribunals, Courts and Enforcement Act 2007 (commercial rent arrears recovery)".

Markets and Fairs Clauses Act 1847 (c. 14)

11 (1) Section 38 of the Markets and Fairs Clauses Act 1847 (recovery of stallage, rents or tolls) is amended as follows.

(2) The existing words become subsection (1).

(3) After "England" insert "(subject to subsection (2))".

(4) After subsection (1) insert--

" (2) Subsection (1) does not apply to the levying of rent in respect of premises in England and Wales to the extent that the power under section 72(1) of the Tribunals, Courts and Enforcement Act 2007 (commercial rent arrears recovery) is exercisable to recover such rent.

(3) Where that power is exercisable to recover such rent, either the undertakers or their lessee, if not the landlord for the purposes of section 72(1) of that Act, may exercise that power as if they or he were the landlord. "

(5) This paragraph extends only to England and Wales.

Sequestration Act 1849 (c. 67)

12 (1) Section 1 of the Sequestration Act 1849 (sequestrator enabled to sue etc. in his own name) is amended as follows.

(2) For "levy any distress" substitute "exercise the power under section 72(1) of the Tribunals, Courts and Enforcement Act 2007 (commercial rent arrears recovery)".

(3) Omit the words "levy" and "distress" in the second place where each occurs.

(4) Omit "levied".

Landlord and Tenant Act 1851 (c. 25)

13 (1) The Landlord and Tenant Act 1851 ceases to have effect.

(2) This paragraph extends only to England and Wales.

Common Law Procedure Act 1852 (c. 76)

14 The Common Law Procedure Act 1852 is amended as follows.

15 In section 210 (proceedings in ejectment by landlord for non-payment of rent), for "and that no sufficient distress was to be found on the demised premises, countervailing the arrears then due" substitute "and that either of the conditions in section 210A was met in relation to the arrears".

16 After that section insert--

" 210A Conditions relating to commercial rent arrears recovery

(1) The first condition is that the power under section 72(1) of the Tribunals, Courts and Enforcement Act 2007 (commercial rent arrears recovery) was not exercisable to recover the arrears.

(2) The second condition is that there were not sufficient goods on the premises to recover the arrears by that power. "

Improvement of Land Act 1864 (c. 114)

17 (1) In section 64 of the Improvement of Land Act 1864 (interest on arrears of rentcharges), for the words from "a sufficient distress" to "charges of such distress" substitute "goods that would be sufficient to pay the amount outstanding under Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (taking control of goods)".

(2) This paragraph extends only to England and Wales.

Railway Rolling Stock Protection Act 1872 (c. 50)

18 (1) The Railway Rolling Stock Protection Act 1872 ceases to have effect.

(2) This paragraph extends only to England and Wales.

Law of Distress Amendment Act 1888 (c. 21)

19 The Law of Distress Amendment Act 1888 ceases to have effect.

Law of Distress Amendment Act 1908 (c. 53)

20 The Law of Distress Amendment Act 1908 ceases to have effect.

Law of Property Act 1925 (c. 20)

21 The Law of Property Act 1925 is amended as follows.

22 In section 109 (powers etc. of receiver appointed by mortgagee), in subsection (3), for ", distress" substitute "or under section 72(1) of the Tribunals, Courts and Enforcement Act 2007 (commercial rent arrears recovery)".

23 Section 121(2) ceases to have effect.

24 In section 150 (surrender of a lease, without prejudice to underleases with a view to the grant of a new lease), in subsection (5), for "by distress or" substitute "under section 72(1) of the Tribunals, Courts and Enforcement Act 2007 (commercial rent arrears recovery) or by".

25 In section 162 (restrictions on the perpetuity rule) in subsection (1) omit paragraph (a).

26 In section 189 (indemnities against rents) omit subsection (1).

27 (1) Section 190 (equitable apportionment of rents and remedies for non-payment or breach of covenant) is amended as follows.

(2) Omit subsection (2).

(3) For subsections (4) and (5) substitute--

" (4) Subsection (5) applies where--

(a) any default is made in payment of the whole or part of a rent by the person ("the defaulter") who, by reason of a charge or apportionment within subsection (3), is liable to pay it, and

(b) the lessee for the time being of any other land comprised in the lease, in whom, as respects that land, the residue of the term or interest created by the lease is vested, ("the paying lessee") pays or is required to pay the whole or part of the rent which ought to have been paid by the defaulter.

(5) Section 72(1) of the Tribunals, Courts and Enforcement Act 2007 (commercial rent arrears recovery) applies, subject to the other provisions of Chapter 2 of Part 3 of that Act, to the recovery by the paying lessee from the defaulter of the rent paid by the paying lessee which ought to have been paid by the defaulter, as if the paying lessee were the landlord, and the defaulter his tenant, under the lease. "

(4) In subsection (7) omit "owner or".

Administration of Estates Act 1925 (c. 23)

28 (1) Section 26 of the Administration of Estates Act 1925 (rights of action by and against personal representative) is amended as follows.

(2) Omit subsection (3).

(3) For subsection (4) substitute--

" (4) To recover rent due or accruing to the deceased, a personal representative may exercise any power under section 72(1) (commercial rent arrears recovery) or 81 (right to rent from sub-tenant) of the Tribunals, Courts and Enforcement Act 2007 that would have been exercisable by the deceased if he had still been living. "

Leasehold Reform Act 1967 (c. 88)

29 In section 15 of the Leasehold Reform Act 1967 (terms of tenancy to be granted on extension), in subsection (3) for "distress, re-entry or otherwise" substitute "re-entry or otherwise (subject to section 85 of the Tribunals, Courts and Enforcement Act 2007)".

Agriculture Act 1970 (c. 40)

30 In section 85 of the Agriculture Act 1970 (exemption for certain sales), in paragraph (d) after "warrant of distress" insert "or warrant of control".

Rent (Agriculture) Act 1976 (c. 80)

31 Section 8 of the Rent (Agriculture) Act 1976 ceases to have effect.

Rent Act 1977 (c. 42)

32 The Rent Act 1977 is amended as follows

33 In section 141(5) (county court jurisdiction) (until its repeal by the Courts and Legal Services Act 1990 (c. 41) comes into force) for "sections 147 and" substitute "section".

34 Section 147 ceases to have effect.

Limitation Act 1980 (c. 58)

35 The Limitation Act 1980 is amended as follows

36 In section 19 (time limit for actions to recover rent) for "or distress made" substitute "and the power conferred by section 72(1) of the Tribunals, Courts and Enforcement Act 2007 shall not be exercisable".

37 In section 38 (interpretation) omit "rentcharges and" and "rent or".

County Courts Act 1984 (c. 28)

38 The County Courts Act 1984 is amended as follows.

39 Section 116 ceases to have effect.

40 In section 139, for subsection (1)(c) substitute--

" (c) the power under section 72(1) of the Tribunals, Courts and Enforcement Act 2007 (commercial rent arrears recovery) is exercisable to recover the arrears; and

(d) there are not sufficient goods on the premises to recover the arrears by that power, " .

Agricultural Holdings Act 1986 (c. 5)

41 The Agricultural Holdings Act 1986 is amended as follows.

42 Omit sections 16 to 19.

43 In section 24 (restriction of landlord's remedies for breach of contract of tenancy) omit ", by distress or otherwise,".

Insolvency Act 1986 (c. 45)

44 (1) Section 347 of the Insolvency Act 1986 (distress etc.) is amended as follows.

(2) In subsection (1) for the words from the beginning to "available" substitute "CRAR (the power of commercial rent arrears recovery under section 72(1) of the Tribunals, Courts and Enforcement Act 2007) is exercisable where the tenant is an undischarged bankrupt".

(3) In subsection (2)--

(a) for the words from the beginning to "goods and effects of" substitute "Where CRAR has been exercised to recover rent from";

(b) for "that distress" substitute "CRAR";

(4) In subsection (5) for the words from the beginning to "upon" substitute "CRAR is not exercisable at any time after the discharge of a bankrupt against".

(5) Omit subsections (6) and (7).

(6) Omit subsection (11).

Housing Act 1988 (c. 50)

45 Omit section 19 of the Housing Act 1988.

Water Industry Act 1991 (c. 56)

46 In section 179 of the Water Industry Act 1991 (vesting of works in undertaker) in subsection (4)(b) omit "or to the landlord's remedy for rent".

Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)

47 In section 57 of the Leasehold Reform, Housing and Urban Development Act 1993 (terms on which new lease is to be granted), in subsection (2)(b)(ii) for "distress, re-entry or otherwise" substitute "re-entry or otherwise (subject to section 85 of the Tribunals, Courts and Enforcement Act 2007)".

Constitutional Reform Act 2005 (c. 4)

48 In Schedule 7 to the Constitutional Reform Act 2005 (protected functions of the Lord Chancellor), in paragraph 4, omit the entry for the Law of Distress Amendment Act 1888.

Section 91

SCHEDULE 15 Attachment of earnings orders: deductions at fixed rates

Part 1 Main amendments

Introduction

1 This Schedule amends the Attachment of Earnings Act 1971 (c. 32).

Amendment of section 6: Effect and contents of order

2 (1) For section 6(1)(a) (instruction to employer to make deductions from debtor's earnings) substitute--

" (a) to make periodical deductions from the debtor's earnings, as specified in the order; and " .

(2) After section 6(1) insert--

" (1A) If a county court makes an attachment of earnings order to secure payment of a judgment debt, the order must specify that periodical deductions are to be made in accordance with the fixed deductions scheme.

(1B) If a court (whether a county court or another court) makes any other attachment of earnings order, the order must specify that periodical deductions are to be made in accordance with Part 1 of Schedule 3. "

(3) In section 6(5) (order to specify normal deduction and protected earnings rates), for "the order" substitute "a Schedule 3 deductions order".

Insertion of new section 6A

3 After section 6 insert--

" 6A The fixed deductions scheme

(1) In this Act "fixed deductions scheme" means any scheme that the Lord Chancellor makes which specifies the rates and frequencies at which deductions are to be made under attachment of earnings orders so as to secure the repayment of judgment debts.

(2) The Lord Chancellor is to make the fixed deductions scheme by regulations.

(3) The power to make regulations under subsection (2) is exercisable by statutory instrument.

(4) The Lord Chancellor may not make a statutory instrument containing the first regulations under subsection (2) unless a draft of the instrument has been laid before, and approved by resolution of, each House of Parliament.

(5) A statutory instrument containing any subsequent regulations under subsection (2) is subject to annulment in pursuance of a resolution of either House of Parliament. "

Amendment of section 9: Variation, lapse and discharge of orders

4 After section 9(1) (power of court to vary order) insert--

" (1A) Subsection (1) is subject to Schedule 3A (which deals with the variation of certain attachment of earnings orders by changing the basis of deductions). "

Insertion of new section 9A

5 After section 9 insert--

" 9A Suspension of fixed deductions orders

(1) A county court must make an order suspending a fixed deductions order if the court is satisfied of either or both of the following--

(a) that the fixed deductions order requires periodical deductions to be made at a rate which is not appropriate;

(b) that the fixed deductions order requires periodical deductions to be made at times which are not appropriate.

(2) The county court is to make the suspension order on the following terms--

(a) if the condition in subsection (1)(a) is met: on terms specifying the rate at which the debtor must make repayments (whether higher or lower than the rate at which the order requires the deductions to be made);

(b) if the condition in subsection (1)(b) is met: on terms specifying the times at which the debtor must make repayments;

(3) If the employer is given notice of the suspension order, the employer must cease to make the deductions required by the fixed deductions order; but the employer is under no liability for non-compliance before seven days have elapsed since service of the notice.

(4) A county court--

(a) must revoke the suspension order if any of the terms of the suspension order are broken;

(b) may revoke the suspension order in any other circumstances if the court thinks that it is appropriate to do so.

(5) Rules of court may make provision as to the circumstances in which a county court may of its own motion--

(a) make a suspension order; or

(b) revoke a suspension order.

(6) The suspension of a fixed deductions order under this section does not prevent the order from being treated as remaining in force subject to the provisions of this section.

(7) This section is without prejudice to any other powers of a court to suspend attachment of earnings orders or to revoke the suspension of such orders.

(8) In this section, in relation to a fixed deductions order, "repayments" means repayments of the judgment debt to which the order relates. "

Amendment of section 25: General interpretation

6 In section 25(1) (meaning of particular words and phrases) insert the following entries at the appropriate place--

" "fixed deductions order" means an attachment of earnings order under which periodical deductions are to be made in accordance with the fixed deductions scheme; " ;

" "fixed deductions scheme" has the meaning given by section 6A(1); " ;

" "Schedule 3 deductions order" means an attachment of earnings order under which periodical deductions are to be made in accordance with Part 1 of Schedule 3; " ;

" "suspension order" means an order under section 9A suspending a fixed deductions order; " .

Insertion of new Schedule 3A

7 After Schedule 3 insert--

" SCHEDULE 3A Changing the basis of deductions

Part 1 Changing to the fixed deductions scheme

Introduction

1 This Part of this Schedule deals with the variation of a certain kind of attachment of earnings order -- referred to as a Schedule 3 judgment debt order -- by changing the basis of deductions.

2 A Schedule 3 judgment debt order is a Schedule 3 deductions order made by a county court to secure payment of a judgment debt.

3 References to variation of a Schedule 3 judgment debt order by changing the basis of deductions are references to the variation of the order so that it specifies that periodical deductions are to be made in accordance with the fixed deductions scheme.

Variation at discretion of court

4 (1) A county court may vary a Schedule 3 judgment debt order by changing the basis of deductions.

(2) The county court may make the variation--

(a) in consequence of an application made to the court, or

(b) of its own motion.

(3) The variation takes effect on the date that it is made.

Variation by court upon redirection

5 (1) A county court must vary a Schedule 3 judgment debt order by changing the basis of deductions if--

(a) the order lapses, and

(b) the county court directs the order to a person in accordance with section 9(4).

(2) The variation must be made at the same time as the county court directs the order in accordance with section 9(4).

(3) The variation takes effect on the date that it is made.

Automatic variation on changeover date

6 (1) On the changeover date, all Schedule 3 judgment debt orders are to be treated as if a county court had varied them by changing the basis of deductions.

(2) The variation takes effect on the changeover date.

(3) The changeover date is the date which the Lord Chancellor specifies for the purposes of this paragraph.

(4) The Lord Chancellor is to specify the changeover date in an order made by statutory instrument.

(5) A statutory instrument containing an order under sub-paragraph (4) is subject to annulment in pursuance of a resolution of either House of Parliament.

Notice of variation still required

7 Section 9(2) (service by court of notice of variation) applies to the variation of an order under this Part of this Schedule (including variation in accordance with paragraph 6) as it applies to any other variation of an attachment of earnings order.

Part 2 Changing from the fixed deductions scheme

Introduction

8 This Part of this Schedule deals with the variation of fixed deductions orders by changing the basis of deductions.

9 References to variation of a fixed deductions order by changing the basis of deductions are references to the variation of the order so that it specifies that periodical deductions are to be made in accordance with Part 1 of Schedule 3.

General prohibition on changing from the fixed deductions basis

10 A court may not vary a fixed deductions order by changing the basis of deductions unless the variation is in accordance with this Part of this Schedule.

Fixed deductions order directed to secure payments under an administration order

11 (1) A county court must vary a fixed deductions order by changing the basis of deductions if, under section 5, the county court directs the order to take effect as an order to secure payments required by an administration order.

(2) The variation must be made at the same time as the county court gives that direction under section 5.

(3) The variation takes effect on the date that it is made.

(4) Section 9(2) (service by court of notice of variation) applies to the variation of an order under this paragraph as it applies to any other variation of an attachment of earnings order. "

Part 2 Consequential amendments

Amendment of section 5: Securing payments under administration order

8 In section 5(3) (power of county court to direct existing attachment of earnings order to secure administration order), for the words in brackets substitute "(with the variation required by paragraph 11 of Schedule 3A and such other variations, if any, as the court thinks appropriate)".

Amendment of section 14: Power of court to obtain information

9 In section 14(1) (power of court to order debtor and employer to provide specified information), for "an attachment of earnings order" substitute "a Schedule 3 deductions order".

10 After section 14(1) insert--

" (1A) Where in any proceedings a county court has power to make a fixed deductions order, the court may order the debtor to give to the court, within a specified period, a statement signed by him of--

(a) the name and address of any person by whom earnings are paid to him; and

(b) specified particulars for enabling the debtor to be identified by any employer of his. "

11 In section 14(2) (powers of court after attachment of earnings order has been made), for the words from "Where" to "in force--" substitute "At any time when a Schedule 3 deductions order is in force, the court or the fines officer, as the case may be, may--".

12 After section 14(2) insert--

" (2A) At any time when a fixed deductions order is in force, the court may--

(a) make such an order as is described in subsection (1A) above; and

(b) order the debtor to attend before it on a day and at a time specified in the order to give the information described in subsection (1A) above. "

13 In section 14(4) (rules of court about notice of application for attachment or earnings order), for the words from "give" to "the application." substitute ", within such period and in such manner as may be prescribed, give the court a statement in accordance with subsection (4A) or (4B)."

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