SCHEDULE 19Leases
PART 6Other provision about leases
Missives of let followed by execution of formal lease
26
1
Where a lease is constituted by concluded missives of let (“the first lease”) and at some later time a lease is executed (“the second lease”), the first lease is treated as if it were a lease granted—
a
on the date the missives of let were concluded,
b
for a term which begins with that date and ends at the end of the term of the second lease, and
c
in consideration of the total rent payable over that term and any other consideration given for the first lease or the second lease.
2
Where sub-paragraph (1) applies the grant of the second lease is disregarded for the purposes of this Act except section 34 (return or further return in consequence of later linked transaction).
3
Section 63 (read with section 64) makes provision for the effective dates in relation to the first lease and the second lease.
4
For the purposes of section 34—
a
the grant of the first lease and the grant of the second lease are linked (whether or not they would be linked by virtue of section 57),
b
the tenant under the second lease (rather than the tenant under the first lease) is liable for any tax or additional tax payable in respect of the first lease as a result of sub-paragraph (1), and
c
the reference in section 34(2) to the “buyer in the earlier transaction” is to be read, in relation to the first lease, as a reference to the tenant under the second lease.
5
In this paragraph, references to the execution of a lease are to the execution of a lease that either is in conformity with, or relates to substantially the same premises and term as, the missives of let.