A tenant and landlord agree in missives that they will enter into a 10 year lease commencing on 1 April 2017 for a rent of £20,000 per annum. The lease document is to be signed at a later date. On 1 April 2017, the tenant takes possession of the property and begins to pay rent at the agreed rate.
Both parties sign the same lease document on 20 May 2017.
The LBTT return is submitted using an effective date of 1 April 2017 as this was the date that the missives were substantially performed by the tenant both taking possession of the property and making the first payment of rent.
As this LBTT return was submitted for the grant of a new lease, the relevant date is the same as the effective date -1 April 2017.
The review date for the first three-yearly return will be 1 April 2020. For the purposes of the first three-year lease review return, the relevant date will be 1 April 2020 and the effective date will be 1 April 2017.