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Where Taxpayers and Advisers Meet

SDLT EXEMPTION ON RENEWAL of RESIDENTIAL LEASE

Andrew1
Posts: 3
Joined: Thu Feb 02, 2017 9:19 pm

SDLT EXEMPTION ON RENEWAL of RESIDENTIAL LEASE

Postby Andrew1 » Thu Feb 02, 2017 10:22 pm

A residential lease was purchased many years before December 2003 under the old Stamp Duty rules.

The property is the principal residence.

A premium of £995,000 has been agreed with the Landlord to extend the lease by 90 years under the 1993 Act. There are no other variations to the terms of the proposed renewed lease. Under these circumstances is the premium exempt from SDLT?

Put another way, can anyone explain to me IN CHILD'S LANGUAGE the fundamental tests to SDLT exemption on lease extension premium, and in this context what does 'holding over' mean?

Alternatively, does anyone know an expert on this particular aspect of SDLT exemption?

Any advice or direction would be most welcome and appreciated.

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: SDLT EXEMPTION ON RENEWAL of RESIDENTIAL LEASE

Postby section 44 » Fri Feb 03, 2017 10:36 am

Under these circumstances is the premium exempt from SDLT?
No.
Put another way, can anyone explain to me IN CHILD'S LANGUAGE the fundamental tests to SDLT exemption on lease extension premium
AW, YOU'VE MADE IT UP. I'M TELLING MUMMY

Andrew1
Posts: 3
Joined: Thu Feb 02, 2017 9:19 pm

Re: SDLT EXEMPTION ON RENEWAL of RESIDENTIAL LEASE

Postby Andrew1 » Fri Feb 03, 2017 12:25 pm

I am newly registered on this site and below was my first message.

I do not understand the response by reference to 'making it up' or telling mummy. Perhaps I am missing the obvious or lack a sense of humour but it was not a response that I had expected or hoped for and if this is typical of the likely response I should expect from members of this site then my message will be my last.

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: SDLT EXEMPTION ON RENEWAL of RESIDENTIAL LEASE

Postby section 44 » Fri Feb 03, 2017 12:33 pm

IN CHILD'S LANGUAGE

Andrew1
Posts: 3
Joined: Thu Feb 02, 2017 9:19 pm

Re: SDLT EXEMPTION ON RENEWAL of RESIDENTIAL LEASE

Postby Andrew1 » Fri Feb 03, 2017 1:23 pm

The absence of a simple EXPLANATION to someone like me who is not at all knowledgeable in this area is not helpful. If you cannot provide an explanation as requested then that is perfectly fine, as there are so very few that probably can, so please discontinue this topic - thank you.

bd6759
Posts: 3095
Joined: Sat Feb 01, 2014 3:26 pm

Re: SDLT EXEMPTION ON RENEWAL of RESIDENTIAL LEASE

Postby bd6759 » Fri Feb 03, 2017 6:55 pm

Don't get upset. It was just s44's attemt at humour. I got it.

What makes you think that there might be an exemption for this transaction, and where did you find the reference to "holding over." That phrase cannot be defined without context.

Exemptions are listed at schedule 3 Finance act 2003.


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