On the grant of a lease SDLT is due not only on any premium (or capital sum) paid, but also on the net present value of the rents. Even though HMRC provide a calculator it is not always easy to work out the correct amount of tax. This session will demonstrate the process through worked examples, and include the following:
- What rents are taken into account?
- What is “net present value”?
- What if rents vary, or are uncertain?
- How are rents under linked leases dealt with?
- What if there is an agreement for lease?
- What about lease renewal?
On completion of this video you should be able to:
- Advise tenants how much SDLT is due on rent and premium on the grant of a commercial lease
- Calculate any additional SDLT due if the rent varies – as a result of a rent review, a deed of variation, indexation, or turnover rent (for example)
- Deal with the SDLT on linked leases
- Advise on SDLT when a lease is surrendered, or renewed
- Deal with SDLT on agreements for lease
Paul Clark has been a consultant at Cripps LLP since 2003. He was head of property at DJ Freeman and before that a solicitor at Linklaters & Paines. Paul has experience in major projects, development, shopping centres, landlord and tenant, land registration and SDLT. A plain language enthusiast, responsible for many standard forms, including the RICS common auction conditions. Former chair of the City of London Solicitors Company Land Law Subcommittee. Member of the Stamp Taxes Practitioners Group. Conveyancing Editor of ‘The Conveyancer and Property Lawyer’. Writes for isurv, the surveyors’ on-line legal service.