Finance Act 2013

2 (1) In Schedule 17A (further provisions about leases), paragraph 3 (leases that continue after a fixed term) is amended as follows. U.K.

(2) In sub-paragraph (3)—

(a) after “continuation of the lease” insert “ for a period (or further period) of one year ”, and

(b) in paragraph (a), for “that term” substitute “ that one year period ”.

(3) After that sub-paragraph insert—

“(3A) But no tax or additional tax is payable in respect of a transaction as a result of the continuation of a lease for a period (or further period) of one year under sub-paragraph (2) if, during that one year period, the tenant under the lease is granted a new lease of the same or substantially the same premises in circumstances where paragraph 9A applies.”

(4) After sub-paragraph (3A) insert—

“(3B) Sub-paragraph (2) is subject to paragraph 3A.”

(5) In sub-paragraph (4), for the words from “the day” to the end substitute “ the last day of the one year period for which the lease is continued or (as the case may be) further continued. ”

(6) After sub-paragraph (5) insert—

“(6) Where—

(a) a lease would be treated as continuing for a period (or further period) of one 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-paragraphs (3) and (4) to that one year period are accordingly to be read as references to so much of that year as ends with that time.”