SDLTM17020 - Miscellaneous Provisions: Substantial performance of an agreement: Example 2
A non-residential agreement for lease is exchanged on 1 January 2015 and is substantially performed on 1 February 2015. »Ê¹ÚÌåÓýapp lease expires on 30 April 2025. »Ê¹ÚÌåÓýappre is a rent review to market rent at the end of the fifth year. »Ê¹ÚÌåÓýapp lease is subsequently granted on 1 May 2015.
On substantial performance, the agreement for lease is notifiable as lease expiring on 30 April 2025. SDLT is payable to the extent the NPV exceeds the threshold.
»Ê¹ÚÌåÓýapp grant of the actual lease on 1 May 2015 will be a linked transaction to the notional lease created on substantial performance. No further notification should be required or tax due as SDLT has already been paid on the full term.