Following the busy festive period, many licence holders choose to close their premises for a short time during the quieter months. This break is often used to carry out repairs, refurbish the premises, or make improvements to support future growth. While this can be a sensible business decision, licence holders need to be aware that closing for too long may create problems during the next five-year renewal process in September 2027.
When a licence comes up for renewal, the Court looks at whether the business has been trading for a significant part of the previous year. The term “significant trading” is subjective, and disagreements over what counts are common. Importantly, the Court may interpret it differently depending on why the premises were closed.
Courts tend to be understanding when closures are caused by major, uncontrollable events—such as fires or substantial building work. In such situations, licence holders can also apply to temporarily move their licence to another location to keep trading. This application is made to the Magistrates’ Court and must follow the rules set out in the Licensing (Northern Ireland) Order 1996.
However, when a business stops trading due to minor repairs or simply because trade is slow, the Court is much less flexible. In these cases, there is a real risk that the licence could be cancelled. This is particularly serious for holders of an Article 5(1)(A) or (B) licence (public houses and off-licences), because of the Surrender Principle, which makes obtaining a new licence costly and difficult.
To avoid nullification, licence holders should keep closures as short as possible and be ready to explain to the Court why the works were needed and demonstrate that they were completed promptly.
With the 2027 renewal approaching, it is important for licence holders to stay aware of the legal requirements and ensure full compliance. Failing to do so could result in the licence not being renewed.
If you are a licence holder who is planning to close your licensed premises in the new year or have any queries relating to your licence, O’Reilly Stewart Solicitor’s leading Licensing Team can assist. Led by Seamus McGranaghan, the team is experienced in all aspects of liquor licensing and can be contacted on 028 90321 000 or info@oreillystewart.com.