A premises licence or club premises certificate is a permanent licence for a specific property. It authorises the holder to carry out licensable activities. This may include alcohol sales, regulated entertainment, and late-night refreshment.
What type of venue needs a premises licence?
Venues that may hold a premises licence include pubs, nightclubs, restaurants, shops, cinemas, hotels, and sports grounds.
How does a premises licence lapse?
Under the Licensing Act 2003, premises licences immediately lapse after an insolvency triggering event.
What is considered a triggering event?
In relation to individuals a triggering event would be:
- The approval of a voluntary arrangement proposed by them
- Being adjudged bankrupt or having their estate repossessed
In relation to a company a triggering event would be:
- The approval of a voluntary arrangement proposed by its directors.
- The appointment of an administrator
- The appointment of an administrative receiver
- The company going into liquidation.
What can I do to prevent my licence from lapsing?
If you want to secure the licence, you will need to transfer it to a solvent entity. You can transfer it to another person, partnership or company.
Additionally, a transfer application can be made by someone other than the licence holder. They would need to have a letter signed by the current licence holder consenting to the transfer.
How long do I have to transfer a licence?
There is a 28-day window after the triggering event to transfer the licence to a solvent entity. After the 28-day period, any transferred premises licence will be lost.
Premises licences issued under the Gambling Act 2005 are subject to similar provisions. However, they have a longer period of 6 months to be transferred to a solvent entity.
Can I still operate without a licence?
No licensable activities may legally be carried out on the premises until the licence is reinstated. The licence must be transferred to a solvent entity within the 28-day period. There is only one opportunity to reinstate the licence so legal advice should be sought as soon as possible.
My licence has lapsed, what can I do?
If the premises licence cannot be reinstated, a new licence would need to be obtained. This process could take between 5 to 10 weeks.
There is no guarantee the licence will be granted in the same terms as before (i.e. shorter trading hours). There may also be objections from residents or police, or changes to the licence conditions.
A premises licence is a valuable asset that can enhance the value of the business and premises. If the licence lapses it can have a detrimental impact on the business and its customers. Failing to act quickly could result in the business ceasing trade and losing the ability to sell it as a going concern.
If you need advice on a premises licence or transferring a premises licence, contact our Licensing team on 03456 465 465 or email enquiries@rotherabray.co.uk
Disclaimer: This blog is for information only and does not constitute legal advice. If you need legal advice please contact us on 03456 465 465 or email enquiries@rotherabray.co.uk to get tailored advice specific to your circumstances from our qualified lawyers.
