Explanatory Notes

Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017

1

24 May 2017

Commentary on Sections

Part 8 – Interpretation and Final Provisions

Schedule 6 - Leases

Part 4 - Agreements for lease, assignments and variations

Increase of rent treated as grant of new lease: variation of lease in first 5 years

267. Paragraph 25 provides for situations where the lease is varied so as to increase the rents payable, and that variation occurs before the end of the fifth year of the lease. The variation is treated as the grant of a lease in consideration for the additional rents. However, this does not apply if the variation is under the original terms of the lease, or by virtue of specified statutory rules.