Notification: Grant of a lease: Example 5
An agreement for a non-residential lease is entered into. The lease will be for the period from and including the date of grant until 30 June 2015 at a rent of £100,000 per annum.The tenant substantially performs the agreement by taking possession of the premises on 1 July 2005 and pays rent in accordance with the agreement at a rate of £100,000 per annum.
In the agreement for lease, this payment may be expressed as a licence fee payable for occupation during the period prior to actual completion of the lease. For stamp duty land tax purposes it is treated as rent payable under a notional lease (refer to SDLTM11010).
The notional lease is for a fixed term of 10 years (from and including 1 July 2005 to 30 June 2015).
A notional lease such as this must be notified if it meets the normal notification criteria. As it is:
- for a term of seven years or more, and
- granted for chargeable consideration,
it must be notified within 30 days of the effective date, in this case the date of substantial performance (so by 31 July 2005).