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HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
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Miscellaneous Provisions: Surrender and regrant of a lease

Surrender and re-grant may occur expressly, where the landlord grants a new lease to thetenant in place of the old one. However surrender and re-grant may also occur by operationof law. This is because the law deems some acts to be inconsistent with the continuationof the old lease and so deems there to be a new lease.

There will be a surrender and re-grant by operation of law where:

  1. the term of the lease is extended (see SDLTM14090) (but not where a reversionary lease is granted to commence on expiry of the old lease: see SDLTM17070);
     
  2. the area of the demised property is extended (but not where there is a new lease of separate property).

On the other hand there will not be a surrender and re-grant where:

  1. there is a variation of the rent (upwards or downwards- refer to SDLTM15010 and SDLTM15020)
     
  2. there is a reduction in the area of the demised property, whether this is effected by a surrender of part or by a Deed of Variation
     
  3. another person is added as a tenant under an existing lease.