1 December 2008 sees the fifth anniversary of the
introduction of the Stamp Duty Land Tax ("SDLT")
regime. Why does this matter? The answer for many is that it
will not, but there may in particular be consequences for
tenants when it comes to rent reviews and for tenants with
turnover rent leases granted under the SDLT regime.
Turnover rents
In the case of turnover rents, the original SDLT return will
have been submitted on the basis of estimated turnover, and
therefore estimated rent, during the first five years of the
term. The rent payable was uncertain when the lease was granted
but once the rent becomes certain, the tenant is obliged to
submit a further SDLT return. The Revenue have clarified that
in the case of turnover rents, the obligation arises at the end
of the fifth year of the term. The tenant will need to
recalculate the SDLT payable based on the actual rent paid
during the first five
