Miscellaneous provisions: Lease assignations: treated as a new lease
If the grant of a lease (that is, the original lease) is exempt from charge under any of the 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) the effect of enactments providing for exemption from stamp duty (SI 2003/2867)
then the first assignation of the lease that is not exempt under any of the above provisions is treated as the grant of a lease by the assignor.
Any such notional grant is treated as being for a term equal to the unexpired term of the original lease and on conditions (for example, rent and review periods) equal to those on which the assignee holds that lease after assignation.
Any capital amount paid for the assignation is chargeable in addition to any charge under FA03/SCH17A/PARA11.
FA03/SCH17A/PARA11 does not apply where:
* group relief * reconstruction and acquisition relief or * charities relief
In relation to the withdrawal of charities relief, it should be noted that the removal of a charity from the Scottish Charities Register maintained by the Office of the Scottish Charities Register does not, of itself, amount to a disqualifying event. What matters is whether the charity continues to be established for charitable purposes only within the meaning of the relevant taxation legislation (TA 1988 section 505 and 506). Scottish charities which have been removed from the Scottish Charities Register should consult HMRC Charities to establish whether they are still entitled to the charitable tax reliefs.
This provision will only apply where the initial grant of the lease was or would otherwise have been subject to SDLT.