LBTT6016 - The lease review date

LBTT guidance on defining the review date for a land transaction involving a lease.

In general, leases that have been subject to LBTT must be reviewed on every third anniversary of the effective date of the original transaction (see LBTT6002) and on each subsequent third anniversary of that date.

There are circumstances where this date will differ and they include:

  • where the first LBTT return for the lease was made because of the effect of the rules about contingent, uncertain or unascertained consideration, the review date is the third anniversary of the event in relation to the contingent, uncertain or unascertained consideration that triggered the first LBTT return;

  • where the first LBTT return for the lease was made because the lease continued beyond its fixed term and as a result became notifiable, the review date is  the third anniversary of the end of the one year period after the end of the fixed term of the lease, and on each subsequent third anniversary of that date;

  • where the first LBTT return for a lease with an indefinite term was made because the lease continued after the end of a deemed fixed term and as a result became notifiable, the review date is the third anniversary of the date on which the deemed fixed term ended, and on each subsequent third anniversary of that date; and

  • where the first LBTT return has been made for a lease that became notifiable as a result of an extension to the term or an increase in the rent, the review date is the third anniversary of the date of the variation that made the lease notifiable, and on each subsequent third anniversary of that date.

Where the leases is assigned or terminated of a lease, the review date is the the day on which the lease is assigned or terminated (LBTT6017).

LBTT(S)A 2013 schedule 19 paragraph 10

Note: The date on which the review occurs is the ‘relevant date’ for the purposes of the ‘relevant date’ field in the LBTT return.

Ref ID: 
LBTT6016
Archive Date: 
9 March 2015
Last updated: 
6 February 2018
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