A five-year abnormality
Language: English Series: Estates Gazette ; (0839) 4 October 2008, 118-120(3)Publication details: 2008Subject(s): Summary: Article looks at the Stamp Duty Land Tax (SDLT) regime, due to come into force on 1 December 2008 and illustrates that tenants who face significant rent increases may also end up with an additional tax burden. Tenants coming to the end of a five year rent review cycle may be eligible to pay an increased contribution towards SDLT if their rent increases by an abnormally large amount, as part of attempts to prevent the practice of letting premises at lower rates to lower SDLT obligations, only to raise them later in the tenancy to shore up the difference in average rents. Includes examples and a methodology for calculating abnormal rent increases and discusses managing due tax.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | L145422 (Browse shelf(Opens below)) | 1 | Available | 145422-1001 |
Article looks at the Stamp Duty Land Tax (SDLT) regime, due to come into force on 1 December 2008 and illustrates that tenants who face significant rent increases may also end up with an additional tax burden. Tenants coming to the end of a five year rent review cycle may be eligible to pay an increased contribution towards SDLT if their rent increases by an abnormally large amount, as part of attempts to prevent the practice of letting premises at lower rates to lower SDLT obligations, only to raise them later in the tenancy to shore up the difference in average rents. Includes examples and a methodology for calculating abnormal rent increases and discusses managing due tax.