Commercial rent enforcement
Protective Levy and Controlled Goods Agreements
A legally grounded explanation of how commercial landlords may use CRAR and a controlled goods agreement when qualifying rent is already due and unpaid.
What the expression means
A protective levy is not a separate legal remedy
“Protective levy” is an informal industry expression. The statutory route is Commercial Rent Arrears Recovery (CRAR), under which an enforcement agent may take control of a tenant's goods and, where appropriate, enter into a controlled goods agreement.
The rent must already be due and payable before the Notice of Enforcement is given. CRAR must also meet the statutory threshold of at least seven days' net unpaid rent both when notice is given and immediately before goods are first taken into control.
Eligibility
When the arrangement may be available
The normal CRAR conditions must be satisfied. A controlled goods agreement cannot cure an instruction that was not eligible for CRAR in the first place.
How the process works
A controlled goods agreement follows a valid enforcement instruction. It is not created privately between landlord and tenant as a substitute for the statutory process.
The lease, premises, tenant, rent ledger, deductions and any insolvency concerns are checked before acceptance.
A compliant notice is issued. The general minimum period is 14 clear days unless the court orders a shorter period.
A certificated enforcement agent attends, identifies eligible tenant-owned goods and may enter into a written controlled goods agreement.
If agreed payments are maintained, the goods remain with the tenant. A breach may permit further enforcement after the required notices.
What it can do
- Formally identify goods taken into control under Schedule 12.
- Allow the tenant to retain custody and continue using specified goods where the agreement permits.
- Restrict the debtor from removing, disposing of or otherwise dealing with controlled goods contrary to the agreement.
- Support an agreed repayment arrangement while preserving the existing enforcement process.
- Permit escalation toward removal and sale if the agreement is breached and the applicable procedure is followed.
What it does not do
- It does not give the landlord ownership of the tenant's goods.
- It does not create a general landlord's lien or make the landlord a preferential creditor.
- It does not guarantee priority over every competing enforcement power or insolvency office-holder.
- It does not cover goods belonging solely to third parties or goods that are statutorily exempt.
- It does not authorise immediate removal or sale without compliance with the further statutory requirements.
Competing creditors and insolvency require specific review
The effect of an existing Notice of Enforcement or controlled goods agreement depends on the other creditor's enforcement power, when property became bound, the status of the goods and whether an insolvency process or moratorium applies. A controlled goods agreement should never be advertised as complete protection against other bailiffs or insolvency.
Tell UKB immediately about threatened winding-up action, administration, liquidation, bankruptcy, a breathing-space moratorium or attendance by another enforcement company. See our CRAR and insolvency guidance.
Statutory enforcement fees
Fees are prescribed—not a percentage discount
The fees recoverable from the tenant under the statutory process are governed by the Taking Control of Goods (Fees) Regulations 2014. UKB does not describe those fees as “50% of the statutory scale”. Any separate landlord-funded charge must be agreed expressly and does not change the statutory debtor account.
Figures shown reflect the statutory non-High-Court fee scale in force from 1 May 2026. VAT and permitted disbursements may require separate consideration.
Commercial landlord questions
Protective levy and controlled goods FAQs
Can a protective levy secure the next rent quarter before it falls due?
No. CRAR is available only for qualifying rent that has already become due and payable before the Notice of Enforcement is given. It cannot be used merely to secure future rent.
Does the tenant need to owe seven days' rent?
The net unpaid rent must equal at least seven days' rent immediately before notice is given and again immediately before goods are first taken into control. VAT and contractual interest may be recoverable, but they do not count toward that threshold.
Is a new 14-day Notice of Enforcement always required after default?
Not necessarily. Where goods remain under a valid controlled goods agreement and the debtor breaches its payment terms, the existing enforcement process may continue. However, separate notice requirements can apply before re-entry, removal or sale, and the status and validity of the original enforcement power must be checked.
Does a controlled goods agreement make the landlord a preferential creditor?
No. It records that specified goods have been taken into control under a particular enforcement power. It does not itself confer preferential-creditor status in an insolvency.
Can the agreement cover leased or third-party goods?
An enforcement agent may take control only of goods belonging to the debtor, subject to the rules concerning co-owned goods and exempt goods. Evidence of hire purchase, lease, rental or third-party ownership should be supplied promptly.
What happens if the tenant interferes with controlled goods?
Intentional interference with controlled goods without lawful excuse can be an offence. Whether particular conduct amounts to interference depends on the facts; the rule should not be presented as preventing every third party from exercising a lawful right.
Primary legal framework
Before instructing
Send us the lease and current rent ledger
We will check the information needed for an operational CRAR assessment, including the premises, recoverable rent, statutory threshold and known insolvency concerns. This does not replace legal advice where liability or the lease position is disputed.
