Is any stamp duty payable on leasing property?
In Jersey there is a distinction between a lease of less than nine years and one of more than nine years. In the case of a lease of less than nine years this can merely be a written document signed by both parties. If it is for a period in excess of nine years (or has the ability to be for a longer period by way of an option) then to be enforceable the lease must be passed before the Land Court on a Friday afternoon. (see paragraph 4 below) As regards stamp duty this is payable only on a lease that is passed before Court. In essence stamp duty is calculated on the basis of the rent payable during the first twenty-one years of the term of the lease. If there are pre-agreed rent increases these must be used to calculate the aggregate rental over a twenty-one year period. If the rent is reviewed to either market or RPI increase then the formula is based upon the commencing rent multiplied by the number of years (with a maximum multiplier of twenty-one) and of this total the first £100,000
Related Questions
- What is meant by the market value of the property and whether stamp duty is payable on the market value of the property or on consideration as stated in the agreement?
- What is the rate of stamp duty payable in Goa on the purchase of residential/commercial property?
- Is any stamp duty payable on leasing property?
