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Home Forums Patrick Cannon How is SDLT charged on interim rents? Reply To: How is SDLT charged on interim rents?

#227
Andrew Campbell
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I suspect the vast majority of interim rents are agreed beween L & T without any Court Order being obtained. Usually T agrees to pay interim rent at the rate agreed for the new lease; and the “backfall” (i.e. the difference between the rent paid and the new rent) is paid when the new lease is granted.

An interim rent reduction would seem to be within new Para. 15A (1) and treated as an acquisition of a chargeable interest by T, but one assumes the circumstances where any consideration is given for it will, in practice, be extremely rare. It would be good if the revised SDLT manual confirmed that HMRC does not regard the grant (if any) of the renewal lease as consideration for an interim rent reduction. Happily, it seems as if such acquisitions will also rarely be notifiable under S77.