Chargeable Consideration: Renunciation/ Surrender of a lease
Where a lease (or more than one lease) is granted in consideration of the renunciation/surrender of one or more existing lease(s) (whether of the same or different premises) between the same parties, then:
* the grant of the new lease does not count as chargeable consideration for the renunciation/surrender and * the renunciation/surrender does not count as chargeable consideration for the grant of the new lease.
This applies even if other consideration is given for the renunciation/surrender of the lease (such as a payment by the landlord to the tenant to procure the renunciation/surrender which is itself chargeable to stamp duty land tax). However the release of any tenant’s obligation is not chargeable consideration in relation to the surrender of the lease. For further details see SDLTM18060.
Where there is a partial renunciation of a lease this is treated for SDLT purposes as the surrender of a lease for the purposes of FA03/SCH17A/PARA16.