Ensuring changes will go smoothly

TAKING on a new venture can seem daunting but if selling alcohol is a priority, securing the status of your premises licence should be a priority.

Transfers

Whether you are purchasing or leasing a property, if the unit you are acquiring already benefits from a premises licence in terms of the Licensing (Scotland) Act 2005, it is possible, in most circumstances, to transfer this to you as the new operator. The rules surrounding transfers are, however, complicated and do not always neatly fit in with commercial realities. It is not uncommon for a landlord to insist on retaining the premises licence in their name and permitting the new operator to nominate a premises manager.

This approach can give a landlord comfort that the licence is secure and cannot be surrendered by a disgruntled tenant further down the line. But it means the landlord has responsibilities as a licence holder and accepts a level of accountability. So it is sensible for a landlord to carry out and record regular due diligence checks to use as evidence in the event of an incident or enforcement action.

Transferring the licence either from a seller or a landlord can be done in two ways. The first option is to transfer it before you complete the lease or purchase. This requires the authorisation and consent of the current licence holder. They may insist on a payment for the privilege under threat of surrender.

With Licensing Boards often taking months to process new applications and off-sales licences being increasingly challenging to obtain, paying their demand may be the lesser of two evils.

The alternative is to wait until the transaction has settled and then lodge a transfer application without consent but with evidence of the business sale. This can mean a long wait following acquisition,