While this can happen in the case of a sales contract, it is much more common in the context of lease agreements. A lease development agreement often allows the tenant to have early access to begin development work, which is enough to provide an essential service. This practice note does not apply to leases and additional costs. For more information on this, please see the practical notice: SDLT and keep. Tenants should remember that if they have entered into a rental agreement and started working before the conclusion of the rental agreement, this is the “effective date” for SDLT purposes, so the conclusion of an SDLT return with payment from the SDLT is required within 30 days of entry and not 30 days after the conclusion of the rental agreement. The SDLT position of the fictitious lease needs to be reviewed, however: despite the frequency with which leases are concluded, their SDLT treatment remains a mystery to many practitioners. The starting point is that SDLT is triggered by the conclusion of a land transfer and not by the exchange of contracts and by the conclusion of a lease and not by the exchange of a lease. For more details and examples of the substantial execution of agreements, the legislation defines a contract as essentially fulfilled if: In the second part of a two-part series on stamp duty tax (SDLT), Bill Chandler attempts to clarify the SDLT treatment of leases granted under a lease agreement. If the first payment is made before the lease is granted, it is an “essential service”.
If the lease has not been performed for the most part, it is ignored for SDLT purposes and SDLT is triggered by the granting of the lease in the usual manner. The question of whether there will be “substantial performance” for performing assembly work on the site is rather a grey area. . . .