441. VAT and stamp duty land tax on assignments.

Where the residue of the term of a lease or the reversion to the lease is assigned or conveyed, a charge to VAT may arise in certain circumstances1. An apportionment of rent between the assignee and the assignor does not, however, give rise to a charge to VAT2.

For the purposes of stamp duty land tax, in the case of an assignment of a lease the assumption by the assignee of the obligation to pay rent, or to perform or observe any other undertaking of the tenant under the lease, does not count as chargeable consideration for the assignment3. Nor