SCHEDULE 41Stamp duty land tax on leases
Leases that continue after a fixed term
2
(1)
In Schedule 17A (further provisions about leases), paragraph 3 (leases that continue after a fixed term) is amended as follows.
(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)
“(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)
“(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)
“(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.”