1. The tenant pays all rents – this is probably an amount expressed as a royalty, but which relates to the rent to be paid under the rental agreement as soon as it has been granted; or when a tenant transfers (transfers) the rental agreement to another person, stamp duty must be paid on the order. They treat assignments in the same way as a real estate purchase. If the end date and rent for the first five years are known, the procedure is the same as for any other rental subsidy and no further return or payment is required when the lease is actually awarded. However, if the end date of the actual lease is not yet known, the notional lease must be considered a lease for an indefinite period, whereas HMRC would accept an estimate of the end date of the lease, with another payment/return necessary for the award of the lease. If the rent for the first five years is not known, if an essential benefit takes place, the fictitious lease is treated as having an uncertain rent, with another payment/return necessary for the approval of the lease. Following the recent changes to the Stamp Duty Rules (“TDS”), it is useful to recall some of the fundamental principles of the tax. On this blog, we look at the sdlT rules regarding leases and fictitious leases. As far as the tax is concerned, you are either responsible or not responsible.

They can only be required to pay stamp duty on rental and lease contracts at the rate prescribed by the applicable law, in this case the Stamp Duty Act. It is also telling to point out that Nigerian courts have repeatedly ruled that a person cannot be taxed unless the language of the law clearly imposes the obligation[2]. All SDLTs due must be paid and a land refund must be submitted to HMRC within 30 days of the effective date. Any additional payment or return must be filed with HMRC within 30 days of entering into the lease, although the government is proposing to reduce the 2017-2018 filing deadline to 14 days. In case of overpayment after the first return, the tenant must submit a second return and write to the Birmingham Stamp Office for a refund. The question now is what is the stamp duty that must be paid on leases or leases. The enabling law[1] contains the formula or formula for calculating the applicable percentages. We tried the same with a rental value of N1,000.

000.00 (for our friends who stay away from mathematics) as follows: Simply put, stamp duty rates for leasing/rental are not a 6% flat rate. Contrary to widespread speculation, you are not required to pay a 6% stamp duty if the term or lease does not exceed 21 years. In principle, there are two types of stamp duty charges, namely: the instrument (usually called the deed of assignment) for the transfer of the lease will be executed on February 2, 2019. In recent days, there has been a lot of controversy and misunderstanding from many sides about the stamp duty to be paid on leases/leases…