The following Corporation Tax guidance note Produced by Tolley in association with Grant Thornton's stamp taxes team provides comprehensive and up to date tax information covering:
SDLT is charged on the grant of a new lease and other transactions treated as such (including lease variations to increase rent).
It is chargeable on any lease premium and also on the net present value (NPV) of any lease rentals payable (provided this is more than a nominal amount of rent). For SDLT purposes, ‘premium’ is defined as chargeable consideration other than rent (see FA 2003, Sch 5, para 9) and tax is charged on the premium based on the rates set out in FA 2003, s 55 (which is similar to the rates applicable to purchases of freehold interests).
From 1 April 2016, the residential rates on premiums are now overlaid by an additional 3% higher rate for purchases of additional dwellings by individuals (or generally to dwellings purchased by companies).
For further information on the specific residential and non-residential rates that apply to the lease premium and the NPV of rental payments, see the Stamp duty land tax ― basic rules guidance note.
Special rules apply where the lease rentals, or part of the lease rentals, are variable, contingent, uncertain or unascertained at the date of grant:
uncertain or unascertained rentals within the first five years of the lease term (eg where rentals are subject to a review or are based on turnover) require a reasonable estimate to be made up front
contingent rental payments within the first five years are assumed to be payable
an adjustment mechanism is provided which requires or permits recalculation of the tax payable after the five-year period has elapsed or the position has been determined
the amounts taken into account for years after the first five years are deemed amounts, based on the highest rental for a 12-month period (as explained above)
following changes made in FA 2013 (explained below) further increases in rent after the first five years (other than those resulting from a
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Once a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the taxpayer.CorrectionHMRC has the right to amend the tax
The majority of state benefits (also called social security benefits) are managed by the Department of Work and Pensions (DWP) via the Jobcentre Plus.Some benefits are dependent on a national insurance contribution record (and different classes of national insurance provide different benefit
This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of
On the disposal of the shares in a company, a seller may receive loan stock in the acquiring company as consideration or part consideration for the sale. For tax purposes, loan notes are either qualifying corporate bonds (QCBs) or non-QCBs (NQCBs). The expression ‘corporate bond’ is a general