Retail and Commercial Leases Act 1995

A lessor must not seek or accept the payment of a premium in connection with the granting of a retail shop lease and a provision of a retail shop lease is void to the extent that it requires the payment of a premium in connection with the granting of the lease.

If a lessor or a person acting on behalf of a lessor contravenes this section—

the person is guilty of an offence and liable to a penalty not exceeding

the lessee is entitled to recover from the lessor as a debt any payment made or the value of any benefit conferred by the lessee and accepted by or on behalf of the lessor in contravention of this section (whether or not the person is convicted of an offence under paragraph (a)).

This section does not prevent a lessor—

from receiving payment for a right or option to enter into a retail shop lease if, when a retail shop lease is entered into, the payment is refunded or applied towards rent payable under the lease; or

from receiving from the lessee payment under a contract with the lessee for carrying out work on the premises before the lessee goes into occupation; or

from requiring payment of preparatory costs as permitted by this Act; or

from receiving payment of rent in advance; or

from securing performance of the lessee's obligations under the lease by requiring a security bond or a guarantee from the lessee or another person (eg a guarantee by the directors of a lessee company guaranteeing performance of the company's obligations under the lease); or

from seeking and accepting payment for goodwill of a business that has been conducted by the lessor; or

from seeking and accepting payment for plant, equipment, fixtures or fittings that are sold by the lessor to the lessee in connection with the granting of the lease; or

from seeking and accepting payment for the grant of a franchise in connection with the granting of the lease; or

from seeking and accepting payment of an amount of a prescribed class.