Sale and leaseback saved from new stamp duty rules

Posted on November 1st, by editor in Caring Times. No Comments

|GLP managing director Andrew Long explains why, for some operators, leasing transactions can be more attractive than tying-up capital in freehold assets| The Inland Revenue is proposing to “modernise” stamp duty on land transactions from December 1, 2003. The proposals, which were announced on October 20, along with those announced in the 2003 budget are designed to help achieve the Government¹s aim of a modern, efficient system of taxing land transactions, promoting fairness between tax payers, reducing distortions and preventing avoidance. The provisions mean a flat charge of 1% on the net present value of the rent over the life of a lease where this exceeds £150,000. Some property experts, particularly those involved in high street retail are concerned that the provisions will add a significant cost to their client¹s transactions. However, some relief to this modernisation is available and also extends to sale and leaseback transactions, provided certain conditions are met. Partial relief will be given

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