Section 82 — Tribunals, Courts and Enforcement Act 2007: Off-setting payments under a notice

Off-setting payments under a notice 82 1 For any amount that a sub-tenant pays under a notice under section 81, he may deduct an equal amount from the rent that would be due to his immediate landlord under the sub-lease.

2 If an amount is deducted under subsection (1) or this subsection from rent due to a superior sub-tenant, that sub-tenant may deduct an equal amount from any rent due from him under his sub-lease.

3 Subsection (1) applies even if the sub-tenant's payment or part of it is not due under the notice, if it is not due because—

a the notified amount has already been paid (wholly or partly otherwise than under the notice), or b the notice has been replaced by a notice served on another sub-tenant.

4 That is subject to the following.

5 Subsection (1) does not apply if the landlord withdraws the notice before the payment is made.

6 Where the notified amount has already been paid (or will be exceeded by the payment), subsection (1) does not apply (or does not apply to the excess) if the sub-tenant has notice of that when making the payment.

7 Subsection (1) does not apply if, before the payment is made, payments under the notice at least equal the notified amount.

8 Subsection (1) does not apply to a part of the payment if, with the rest of the payment, payments under the notice at least equal the notified amount.

9 Where the notice has been replaced by one served on another sub-tenant, subsection (1) does not apply if the sub-tenant has notice of that when making the payment.