Q&As

If a prospective tenant occupies a property before an agreement for lease has been exchanged, what is the effective date for stamp duty land tax (SDLT) purposes? Would their occupation be regarded as a periodic business tenancy and therefore be liable for SDLT from the date of occupation?

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Published by a LexisNexis Tax expert
Published on: 06 April 2018
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Assumptions:

  1. •

    the land in question is in England and that the occupier does not have some other prior right in the land, eg a prior lease

  2. •

    the tenant does not enter into a Tenancy at Will and the terms of their occupation are not limited to a licence with the landlord retaining control

Paragraph 12A of Schedule 17A to the Finance Act 2003 (FA 2003) applies where an agreement for a lease is entered into and the agreement is substantially performed without having been completed.

Substantial performance is defined in FA 2003, s 44 and includes where the purchaser under the contract takes possession of the whole, or substantially

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Stamp duty definition
What does Stamp duty mean?

A transfer tax payable on documents and instruments, rather than in respect of a transaction. It is most commonly encountered on the transfer of UK certificated shares, where the stock transfer form is the instrument that is stamped.

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