SDLTM17040 - Miscellaneous Provisions: Linked leases: Successive: Calculation
Transactions are defined (at FA03/S108) as ‘linked’ for the purposes of stamp duty land tax (SDLT) if they form:
- a single scheme or arrangement, or
- a series of transactions
between the same parties (or connected persons).
Where two or more leases are linked as a series (‘successive’ linked leases), the legislation at FA03/SCH17A/PARA5 treats the series as though it were a single lease and sets out the method of calculating SDLT.
Refer to SDLTM17035 for details of what constitutes successive linked leases.
SDLT is calculated under FA03/SCH17A/PARA5 as though the series of leases were one lease:
- granted at the time the first lease in the series was granted
- for a term equal to the aggregate of terms of all the leases in the series, and
- in consideration of the rent payable under all of the leases in the series.
Any non-rental consideration payable on the original lease or on any of the successive linked leases would be charged under the provisions of FA03/S55. For further details of how SDLT is calculated on premiums see SDLTM11045 and SDLTM13010.
Where the original lease qualified for relief or exemption, for instance under the provisions of FA03/S57A (refer to SDLTM16040 for details of when the leaseback element of a sale and leaseback is exempt), the deemed lease created by FA03/SCH17A/PARA5 will continue to benefit from that relief or exemption.