Additional lease – a complementary lease is essentially a totally separate lease from the additional premises to be denied. Although this prevents remission and re-knowledge, the two leases should expire at the same time if the two independent leases are to allow the use of all premises as one, the rights granted and reserved to be proportionate, the dates of review of rents and breaks should be aligned for the duration, if the two leases expire at the same time and the parties may want to ensure that a rental contract without the other cannot be allocated or sublet. This contrasts with the treatment of an agreement for the granting of a lease in the future – see SDLTM10040. The net value (NPV) of the rent over the term of the lease is $831,660. The calculation of the NPV for the first year is $100,000, discounted by 3.5%, not $100,000, which is multiplied by 3.5 times more. Indeed, the calculation of the NPV does not begin until the first year of the term of the lease, which, in the case of a reversible lease, is the date on which the rental period begins (December 1, 2020 here) and not the date of award. You will find information on the general application date of SDLT under practical note: land transactions, interest paid and paid transactions, as well as details on the calculation of the SDLT to be paid for the rental transactions, under practical note: SDLT invoice – leasing. The parties are free to amend a lease agreement by mutual agreement at any time by entering into an agreement that expressly changes its terms. However, two important variants will change the law created by the lease agreement and thus come into effect as the lease and reissue of a new lease, rather than changing the original terms.

These variants are: Most of the rent fluctuations we`ve seen lately have contributed to a reduction in rent. HMRC`s guidelines make it clear that a variant consisting exclusively of a rent reduction will not affect VAT or LTDS. However, the situation is less secure if the tenant agrees to do something in return. For VAT reasons, a tenant`s agreement to do something against a rent reduction may constitute a delivery from the tenant to the lessor. HMRC`s guidelines suggest that an agreement to renew a lease agreement, an amendment or surrender of a break clause or an agreement to enter into a new lease does not constitute a delivery from the tenant to the lessor. Only if a tenant agrees to do more will he make a delivery to the landlord – HMRC gives the example of a tenant doing field work for the landlord. The VAT status of the tenant`s delivery depends on what the tenant is willing to do. This practical note provides an overview of the treatment of the Property Tax Stamp Tax (LTDS) for the following joint tenancy transactions: A rent reduction in which the tenant gives nothing in return to the lessor does not create SDLT liability. However, if the lessor and tenant agree to renew a tenancy agreement or enter into a reversion agreement (a lease agreement beginning at the end of an existing lease), the tenant may assume an LTDS liability. If the tenant makes a delivery to the lessor, the landlord`s agreement to reduce the rent is then treated as the delivery of the tenant to the tenant.