Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 4

Grant of new lease to tenant holding over

Schedule 6, paragraph 4 deals with the situation where a tenant who is holding over after a fixed-term lease expires is granted a new lease of the same (or substantially the same) premises during the one-year extension period, and the new lease is not backdated to the previous year.

• Where a tenant holding over is granted a new lease of the same or substantially the same premises during the deemed one-year extension period, the original lease is no longer treated as continuing beyond its fixed term.
• The new lease is treated as starting on the day after the original fixed term ended, regardless of when it was actually granted during the one-year period.
• Any rent that would have been payable under the original lease during that one-year holdover period is instead treated as payable under the new lease, and the rule preventing double-counting of rent under overlapping leases does not apply to that rent.
• If the original lease had already been extended one or more times under the holding-over rules, references to the original fixed term are read as references to the most recently extended fixed term.