Sdlt And Agreements For Lease

In the second part of a two-part series on stamp duty (SDLT), Bill Chandler attempts to clarify the SDLT treatment of leases granted under a lease agreement. If the parties wish to commit but cannot proceed directly to the lease, they can enter into a rental agreement. This often happens when new premises are built or when existing premises need to be renovated or renovated. The Stamp Duty Land Tax (SDLT) is sometimes paid by tenants in case of rental. The SDLT to be paid is determined by the value of the lease calculated on the basis of the premium paid, the rent to be paid and the duration of the lease agreement. SDLT is more likely to be paid for medium- and long-term leases or for higher rents. If a lease is held at the end of its term and a new lease is granted, the SDLT position can be complicated and advice should be sought. SDLT liability may arise in the holding company for a period prior to the granting of a new lease and interest may accrue. This is usually the date of the conclusion of the lease, although this date can sometimes vary when “essential services” have been performed before the conclusion. The current filing period is 14 days from the effective date of the transaction. If SDLT is payable, an SDLT form must be submitted to HMRC within the corresponding timeframe, at the same time as a payment due.

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By Tim