Reviewing a lease upon termination

Reviewing a lease upon termination

The effective date of a 10 year lease of a restaurant for rent of £25,000 per annum is 1 November 2017. The net present value (NPV) is calculated using the £25,000 payable in each of the 10 years.

An LBTT return was submitted and tax of £579 paid, based on the calculated NPV.

The tenant submits three-yearly review returns in 2020, 2023 and 2026. The lease then terminates upon its natural expiry on 31 October 2027.

The tenant must complete a review return upon termination to reflect any changes that have been made to the lease since the last review return was submitted. Their return must be made no later than 30 November 2027.

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