BUSINESS LEASES: STAMP DUTY AND VAT (Hansard, 18 February 1992)

HL Deb 18 February 1992 vol 535 c43WA 43WA

§ Lord Monson
asked Her Majesty's Government:
Why, following the Finance Act 1989, stamp duty is chargeable not only on new business leases but also on the VAT which the lessor now theoretically has a right to add to the rent payable, even in cases where the lessor has never opted to exercise that right.

§ Lord Brabazon of Tara
The stamp duty charge on VAT on rent, including prospective VAT, under a lease of non-domestic property, reflects legal advice given to the Inland Revenue. Where a landlord agrees in advance not to exercise his option to levy VAT, this stamp duty charge does not arise.