Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 19 paragraph 21

New lease granted during the one-year continuation period

Paragraph 21 deals with what happens when a tenant who is holding over beyond the end of a fixed-term lease is granted a new lease of the same (or substantially the same) premises during the one-year continuation period that would otherwise be deemed under paragraph 20.

• Where paragraph 20 would normally treat an expired lease as continuing for an extra year, but a new lease of the same or substantially the same premises is granted during that year, the one-year deemed continuation under paragraph 20 is switched off.
• The new lease is treated as starting immediately after the end of the original fixed term, even if it actually began partway through the one-year continuation period.
• Any rent that would have been payable under the original lease during the one-year holdover period is instead treated as rent payable under the new lease.
• If the original lease had already been extended one or more times under paragraph 20, these rules apply by reference to the most recently extended fixed term rather than the original term.