Q&As

A tenant is proposing to take an assignment of a pre-2003 lease. On completion the lease will be varied to bring in a higher rent. Given the lease fell under the old stamp duty regime how is the increase in rent treated for SDLT purposes?

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Produced in partnership with Sean Randall of Blick Rothenberg
Published on LexisPSL on 01/03/2019

The following Tax Q&A produced in partnership with Sean Randall of Blick Rothenberg provides comprehensive and up to date legal information covering:

  • A tenant is proposing to take an assignment of a pre-2003 lease. On completion the lease will be varied to bring in a higher rent. Given the lease fell under the old stamp duty regime how is the increase in rent treated for SDLT purposes?

In principle, the variation of a (stamp duty) lease will be a stamp duty land tax (SDLT) transaction. This is on the basis that the effective date of the transaction is after the implementation date for SDLT, 1 December 2003, and is not pursuant to a contract entered into before 10 July 2003, the date on which the Finance Bill 2003 received Royal Assent. That the lease to be varied was granted before the implementation date does not change this conclusion. The transitional rules for SDLT are set out in Schedule 19 to the Finance Act 2003 (FA 2003) (Stamp Duty Land Tax: Commencement and Transitio

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