A five-year abnormality
Cartwright, Cassandra
A five-year abnormality - 2008 - Estates Gazette (0839) 4 October 2008, 118-120(3) .
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.
United Kingdom--
A five-year abnormality - 2008 - Estates Gazette (0839) 4 October 2008, 118-120(3) .
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.
United Kingdom--