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HMRC internal manual

Stamp Duty Land Tax Manual

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HM Revenue & Customs
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Miscellaneous Provisions: Lease Assignments: Treated as new lease

If the grant of a lease (that is, the original lease) is exempt from charge under any ofthe following

FA03/S57A - sale and leaseback arrangements

FA03/SCH7/PART1 - group relief

FA03/SCH7/PART2 - reconstruction and acquisition relief

FA03/S66 - transfers involving public bodies

FA03/SCH8 - charities relief

FA03/S123(3) - regulations reproducing in relation to stamp duty land tax (SDLT) theeffect of enactments providing for exemption from stamp duty (SI 2003/2867)

then the first assignment of the lease that is not exempt under any of the aboveprovisions is treated as the grant of a lease by the assignor.

Any such deemed grant is treated as being for a term equal to the unexpired term of theoriginal lease and on conditions (for example, rent and review periods) equal to those onwhich the assignee holds that lease after assignment.

Any capital amount paid for the assignment is chargeable in addition to any charge underFA03/SCH17A/PARA11.

FA03/SCH17A/PARA11 does not apply where

* group relief
* reconstruction and acquisition relief or
* charities relief

is withdrawn due to a disqualifying event occurring before the effective date of theassignment. Refer to SDLTM23000 and SDLTM26000.

This provision will only apply where the initial grant of the lease was or would otherwisehave been subject to SDLT.