The tenant usually agrees with the landlord to pay rent throughout the term of the lease while they are leasing the property. The rent payable under a lease is chargeable consideration for LBTT.
A lease transaction may also have a service charge payable by the tenant. The rent amount only will be charged LBTT when the service charge is separate from the rent amount.
The whole total of the rent and service charge will be charged LBTT if the service charge is not apportioned separately from the rent.
Where the landlord has elected to waive exemption from VAT as at the effective date, the rent for LBTT purposes includes the VAT chargeable. An option to tax made after the effective date does not affect the rent for the purposes of the 3-year review.