Q&As

A client is going to take an assignment of a lease and then surrender the lease to the landlord in exchange for a grant of a new lease. Will overlap relief be available on a surrender and re-grant of the lease?

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Published on LexisPSL on 26/02/2019

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • A client is going to take an assignment of a lease and then surrender the lease to the landlord in exchange for a grant of a new lease. Will overlap relief be available on a surrender and re-grant of the lease?
  • Assignment of a lease
  • Surrender and re-grant

Assignment of a lease

The assignment of a lease is generally treated in the same way as the transfer of a freehold interest and any payment or premium on the assignment (other than a reverse premium) will be subject to stamp duty land tax (SDLT). The assumption by the assignee of obligation under the lease to pay rent or to perform or observe any undertaking of the tenant under the lease does not count as chargeable consideration.

Where a relief from SDLT was claimed on the grant of a lease (and there has been no claw-back of that relief), the first assignment of the lease that

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