Stamp Duty On Commercial Leases: An Ultimate Guide
May 13, 2020

Is There Stamp Duty On Commercial Property Leasing?

Stamp duty can be a confusing topic – especially when it comes to commercial property leasing. While stamp duty is not always payable on commercial leases, there are some situations when it is.

You may find that stamp duty is owed on a commercial lease on the grant, assignment, variation or surrender of that lease. This will only occur if the total value of the overall transaction is above a certain amount of money.

When Is Stamp Duty Payable On Commercial Property Leasing?

Stamp duty is based on lease premium and rent due – this will include VAT (if applicable) – and the length of the lease. It is due within thirty days of the transaction and this is a vital date to remember as failing to do so could result in financial consequences for you as the person required to pay.

“Within thirty days of the transaction” could, however, cover a range of options as to when this payment needs to be made. It could be when the contract completes, when the tenant moves in or when the payment is made. This may also be based on another substantial way in which the completion of the transaction is performed. The best thing to do is to consult a professional to be sure.

Why It Is Important To Understand

While this is a complex subject, it is important to know where you stand with it as not paying your stamp duty on time can result in you accruing interest, which then must be paid on top of the required tax. You may also incur a fine.

If you later find that you have overpaid on stamp duty or paid when you should not have, you may be refunded the amount you paid in error – however, this is a very difficult and lengthy process, and it is much easier to ensure you pay correctly in the first instance.

Get Help With Stamp Duty On Your Commercial Lease

Are you confused about stamp duty in commercial property leasing? Unsure as to who pays stamp duty on a commercial lease? The best thing to do is to get expert support throughout the process to minimise the chances of a payment being made, or not made, erroneously. Get in touch with Bowsers Solicitors for advice on all your stamp duty needs, and to make sure you pay correctly the first time.