SCHEDULE 19Leases
PART 6Other provision about leases
20Leases that continue after a fixed term
1
This paragraph applies to—
a
a lease for a fixed term and thereafter until terminated, or
b
a lease for a fixed term that may continue beyond the fixed term by operation of law.
2
For the purposes of this Act (except section 30 (notifiable transactions)), a lease to which this paragraph applies is treated—
a
in the first instance as if it were a lease for the original fixed term and no longer,
b
if the lease continues after the end of that term, as if it were a lease for a fixed term of 1 year longer than the original fixed term,
c
if the lease continues after the end of the term resulting from the application of paragraph (b), as if it were a lease for a fixed term 2 years longer than the original fixed term,
and so on.
3
In a case where no land transaction return or any other return has been made in relation to the transaction, where the effect of sub-paragraph (2) in relation to the continuation of the lease for a period (or further period) of 1 year after the end of a fixed term is that the transaction becomes notifiable—
a
the buyer must make a return in respect of that transaction before the end of the period of 30 days beginning with the day after the end of that 1 year period,
b
the return must include an assessment of the tax that, on the basis of the information contained in the return, is chargeable in respect of the transaction, and
c
the tax so chargeable is to be calculated by reference to the tax rates and tax bands in force at the effective date of the transaction.
4
Sub-paragraph (3) is subject to paragraph 21.
5
For the purposes of section 30 (notifiable transactions), a lease to which this paragraph applies is a lease for its original fixed term.
6
Where—
a
a lease would be treated as continuing for a period (or further period) of 1 year under sub-paragraph (2), but
b
(ignoring that sub-paragraph) the lease actually terminates at a time during that period,
the lease is to be treated as continuing under sub-paragraph (2) only until that time; and the references in sub-paragraph (3) to that 1 year period are accordingly to be read as references to so much of that year as ends with that time.