LBTT6025 - Missives of let followed by formal lease execution

LBTT guidance on the rules which apply when the missives of let are followed by the formal execution of the lease.

Where a lease is agreed by concluded missives of let (referred to as the ‘first lease’), and the execution of a formal lease (the ‘second lease’) takes place at a later date, the missives of let are treated as a lease granted on the date the missives of let were concluded, for a term which begins with that date but ends at the end of the term of the second lease and in consideration of the total rent payable over that term, plus any other consideration given for the first or the second lease. The second lease must be either in conformity with, or relate to substantially the same premises and term as, the first lease.

The second lease is disregarded for the purposes of the tax unless an LBTT return is required because there is a second transaction that is linked to the first transaction and makes the first transaction notifiable.


The effective dates (see LBTT6002) of the first lease and the second lease are the dates of completion, i.e. the dates when they are executed by the parties or constituted by any other means. For the purposes of this rule, a reference to the execution of a lease are to the execution of a lease that conforms with or relates to substantially the same premises as the missives of let.

The grant of the first lease and the grant of the second lease are linked, regardless of whether the provisions about linked transactions in the LBTT(S)A 2013 would have linked them in any case. The tenant under the second lease is liable for any tax, or additional tax, due in relation to the first lease.

LBTT(S)A 2013 schedule 19 paragraph 26

Ref ID: 
Archive Date: 
9 March 2015
Last updated: 
9 March 2015
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