Notification: Grant of a lease: Example 1
A 99-year commercial lease granted for a premium of £100,000 and annual rent of £500 is executed by both parties on 1 July 2009. The tenant has not previously taken entry or paid any rent.
Although there is no tax to pay (as the premium and net present value of rent are each below the non-residential threshold of £150,000), the lease is:
* for seven years or more and * for chargeable consideration over £40,000.
so is notifiable.
This lease should be notified within 30 days of execution of the formal lease (by 31 July 2009).