Highly relevant to tenants now that SDLT has passed its fifth anniversary are the SDLT rules relating to abnormal rent increases – see commentary in the December CPI Update. Where rents rise abnormally following the end of the fifth year of a lease, the increase can be regarded as a consideration for the grant of a new lease, and therefore subject to SDLT. Sadly, despite the complexities of ascertaining when an increase is to be regarded as abnormal, it appears that the Revenue has no intention of abolishing or overhauling the rules – as shown by today’s publication of an on-line abnormal rent increase calculator. See http://www.hmrc.gov.uk/so/new-sdlt-calculators.htm
Sadly (2) the calculator currently has a fault in it, and does not yet work, but bookmark the site, and keep trying…!