There is no need to read this section if your land transaction is not for the grant or assignment, in Scotland assignation, of a lease or of a freehold subject to a lease. Purchasers of those interests should read the paragraphs below for guidance as to whether they need to complete section 2 of form SDLT1 and/or section 2 of form SDLT4.
Shared ownership leases: there are special rules for a shared ownership lease. For all shared ownership leases please refer to our guidance at SDLTM27080.
You may use an SDLT1 for the first lease and multiple forms SDLT4, one each for the other leases giving details of the linked lease in this part. See notes for question 13 of the SDLT1.
Note: if there are six or more properties involved in any one transaction refer to Multiple acquisitions and complex transactions.
| Transaction | SDLT4 questions for completion | Notes |
|---|---|---|
Transaction where there is a lease involved (code A on SDLT1 question 2) with multiple properties |
Questions 8 to 14 for each additional property not shown on the SDLT1 |
If any property is non-residential or mixed also complete questions 1 to 7 |
Grant of lease (code L on SDLT1 question 2) with multiple properties |
Questions 8 to 14 for each additional property not shown on the SDLT1. If any part of the property is non-residential or mixed use, complete lease questions 26 to 37 on one of the forms only. |
If any property is non-residential or mixed also complete
questions 1 to 7 |
Assignment of lease (code A) of single non-residential or mixed property |
No need to complete part 2 of form About Leases |
Also complete questions 1 to 7 |
Surrender of lease (code A) of single non-residential or mixed property, (chargeable consideration received from landlord) |
No need to complete part 2 of form About Leases |
Also complete questions 1 to 7 |
Grant of lease (code L) of single non-residential or mixed property |
Questions 26 to 37 |
Also complete questions 1 to 7 |
Lease linked to lease entered on SDLT1 would also be code A at question 2 |
Questions 8 to 21 |
Complete SDLT1 at question 14 to show total tax payable
for all linked transactions; include this total at question
15 of the SDLT 1 |
Lease linked to lease entered on SDLT1 would also be code L on SDLT1 question 2 |
Questions 10 to 27 plus Questions 28 to 39 for any lease of a property which is non-residential or mixed
|
Complete SDLT1 question 14 to show total tax payable for all linked transactions; include this total at question 15 |
Follow notes for form SDLT1, question 1.
The code shown at this question of form SDLT4 should be the same as the code used at question 1 of the SDLT1.
If the transaction involves a single property or title described in questions 16 to 33 of the SDLT 1 put X in the first box and go straight to question 26. Answer those of questions 26 to 37 that are relevant.
For a single lease, either a lease newly granted (code L at question 2 of the SDLT 1) or an existing lease acquired (code A at question 2 of the SDLT 1), but with more than one property, address or location.
At question 26 on form SDLT1 you have entered a number which is 2 or greater than 2.
For a 'linked' lease, you have entered the first lease on form SDLT1 indicating at question 13 that there is another linked transaction. Complete questions 8 to 14 of a form SDLT4 for each additional property or for the property covered by the linked lease.
Supply the full postal address if it has one, starting with the postcode followed by the house or building number and finally by the rest of the address. If there is no postal address leave the fields for postcode and house number blank.
If the property is in Northern Ireland the rest of the address must include the county in which it is situated.
If the address of the land or property does not have a postcode or other identifying house or building number describe its situation under the 'rest of address' section and ensure that a plan is attached (see question 14 below).
Follow notes for SDLT1 question 29.
Follow notes for SDLT1 question 30.
Leave blank if not available but if you know or are able to find the number enter it here.
Follow notes for SDLT1 question 31.
Complete only where the transaction is for or includes agricultural or development land.
Follow notes for SDLT1 question 32.
Follow notes for SDLT1 question 33.
Enter the appropriate code following the notes for SDLT1 question 3.
Select one code relevant to the lease in question:
See also notes for SDLT1 question 16.
It is possible that the code you select for question 16 may not correspond with the type of property code selected at question 8.
Follow notes for SDLT1 question 17.
Follow notes for SDLT1 question 18.
Follow notes for SDLT1 question 19 . Use figures only, that is 1, 2, or 3 not one, two or three
Follow notes for SDLT1 question 20.
Show the actual amount of VAT if any, included in the starting rent at question 20 plus any VAT included in the total premium payable shown at question 22.
Questions 22 to 25 must only be completed for a linked lease code L. If any question does not apply enter 0. For anything other than a linked lease code L leave these questions blank.
Enter the NPV in respect of this lease only.
Follow notes for SDLT1 question 23.
The tax due on the premium is calculated as explained for question 13 of the SDLT 1. See also notes for SDLT1 question 24.
If there is no premium, for example for a lease at a full rack rent, enter 0.
Follow notes for the SDLT1 question 25 if there is no net present value enter 0.
Note: Only answer questions 26 to 37 if you have entered L at question 2 of the SDLT1.
If the lease was granted as a replacement for a lease of the same property to the purchaser, what were the terms of the former lease surrendered by the purchaser? The terms should include the rent returned under the previous lease and the period of its un-expired term.
Confine your answer to 30 characters including spaces.
Tell us if the contractual term can be broken either by the landlord or by the tenant or if the lease provides for either party to break the term. If there is more than one date when a break clause may become operative give details only of the first occurrence after the effective date. Leave blank if there is no break clause.
If there is a break clause you must also answer question 30.
Having answered question 27, enter the date on which the break clause shown at question 27 could first operate. The date must be shown in the format dd/mm/yyyy, for example 05/07/2011.
Select from the options on the return. Leave blank if none apply. If more than one apply mark all which apply.
Mark with an X if, at the end of the period of the lease, the tenant has a right, or may exercise an option, to renew or extend the lease.
Such a right or option may be as a result of an agreement between landlord and tenant either within or outside the terms of the lease. Leave blank only if the lease cannot be renewed or extended.
Enter X if the rent reflects an open market rent for the land and buildings. Leave blank if the rent is either above or below an open market value.
Some commercial leases include a rent which will be based on the turnover or profits of the business concerned. It is not usually possible to quantify such rent at the date of the lease. If any part of the rent reserved is to be based on either turnover or profits, mark with an X.
If the whole or any part of the rent reserved for the term cannot be quantified at the date the lease is granted or acquired and the lease does not reserve a contingent rent, either minimum or maximum, mark with an X. This includes rent-sharing leases where the rent payable is a proportion of the rents received or receivable but not contingent reserved rents which are described below.
A lease may reserve a minimum rent that is to be paid in certain circumstances. For example a rent review clause may provide that whatever happens at the time the rent is reviewed, the new rent will never be less than the rent previously paid ('upward only' review). Enter 'X' if a minimum rent is to be reserved for any reason.
If the lease provides for the rent to be reviewed during the term, show how often the review will take place by entering the number of whole years to the nearest year between regular rent reviews.
If the lease provides for a review or reviews, show the date of the first review to take place after the effective date of the transaction. The date must be shown in the format dd/mm/yyyy, for example 05/07/2011
Indicate the type of review, whether an agreement of the open market rent, a rent tied to movement in the Retail Prices Index or another type of review.
Paragraph 7 Schedule 17A Finance Act 2003 applies where the lease provides either for specific rent changes, for example 'stepped rents' or for a mechanism such as a rent review that may result in changes to the rent payable during the term of the lease. If that applies enter the date of the first rent change that may occur during the term of the lease. The date must be shown in the format dd/mm/yyyy for example 05/07/2011.
Enter the amount of any payments provided for by the lease (for each period indicated in your answer to question 35) to cover services, for example maintenance. Leave this question blank if:
Show how often the service charge is to be paid.
If, apart from cash, there is any other form of consideration paid, performed or given by the tenant as a premium in order to acquire the lease, select from the codes below and enter the appropriate code (or codes if more than one) on the return.
| Other Considerations | Code | Manual |
|---|---|---|
Debt (includes assumption by purchaser of outstanding mortgage) |
01 |
|
Building works |
02 |
|
Employment |
03 |
|
Other (such as an annuity) |
04 |
|
Shares in a quoted company |
05 |
|
Shares in an unquoted company |
06 |
|
Other land |
07 |
|
Services |
08 |
|
Contingent consideration |
09 |
SDLTM11045 If, apart from cash, any other form of consideration is paid performed or given by the landlord to induce the tenant, by way of a 'reverse premium' to acquire the lease, select the appropriate code (or codes if more than one) from the table above.
